IBM announced it will separate its managed infrastructure services unit into a new public company. New CEO Arvind Krishna said the move will allow them to focus on artificial intelligence and cloud computing.
- Krishna announced the new company will be called NewCo. for a short period of time and hopes the separation will be finished by the end of 2021.
- Krishna, who took over in April from Ginni Rometty, made it clear that IBM will eliminate any software and service unit that doesn't align with cloud computing and artificial intelligence.
- Earlier this week, Krisha said IBM will set up an AI Center of Excellence in partnership with the Government e-Marketplace. He called AI "one of the biggest technology revolutions" of this time, noting that IBM would incorporate AI into software and systems.
- In May, he said "every company will become an AI company" as a result of digital acceleration prompted by the pandemic.
Some of this information first appeared in today's Inside Business.