IBM has announced it is making the managed infrastructure services part of its global technology business (GTS) an independent company to continue its ‘maniacal’ focus on open hybrid cloud and artificial intelligence (AI).

The independent company, which will be known initially as ‘NewCo’, will be created towards the end of 2021.

“Today, hybrid cloud and AI are swiftly becoming the locus of commerce, transactions, and over time, of computing itself,” wrote Arvind Krishna, IBM CEO, in a blog announcing the news. “Our intent is to concentrate our energy on the things that matter the most to our clients so we move them the furthest. As a more focused company, IBM will innovate and move faster, and invest more strategically in the future of our business.

“Going all-in on our open hybrid cloud platform and AI solutions will create value for our clients, our company, and our shareholders,” Krishna added. “This change best positions IBM for improved growth.”

Krishna noted that since day one of taking over the chief executive role from Ginni Rometty, his vision was that a ‘maniacal focus on open hybrid cloud platform and AI capabilities [were] key’ to growth. The letter to all employees, dated April 6 – as this publication reported – noted the ‘fundamentals [were] already in place’, and that IBM had ‘unique capabilities to help clients realise the potential of a hybrid cloud business model.’

CloudTech reported on Rometty’s departure in January and the task ahead for the new boss. Both Nick McQuire of CCS Insight and Bill Mew, a 16-year IBM veteran, said the ship needed to be stripped of any deadwood, with McQuire asking how the company could ‘create a cohesive vision that combines both the cloud business and the services business.’

Nine months on, this appears to be the answer. Krishna said IBM’s services business currently accounted for 60% of its revenue, making this an especially strong move. He also noted the potential of Red Hat in this shift, something Mew previously remarked upon.

“Our decision is also the logical next step in our pursuit of the $1 trillion hybrid cloud opportunity,” wrote Krishna. “The acquisition of Red Hat allowed us to build an open and secure hybrid cloud platform that cuts across all the places our clients do computing. This was the first major step to seize this opportunity and underpins everything that has followed.

“I am confident this is the right move and that our collective future is brighter as a result,” he added. “I am excited about the path ahead and the tremendous value we will create by having two companies focused on what they do best.”

You can read the full blog here.

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