Business

October 10, 2020

IBM will split into two companies

Source: Unsplash (Carson Masterson) 

The Gist

The new company will handle IBM's legacy IT work, allowing IBM to focus on AI and cloud services. 

The List

  • IBM's new CEO Arvind Krishna stated that IBM will streamline its focus to compete in the AI and cloud services space.
  • Microsoft and Amazon are the current leaders in the cloud computing space, which is valued at over 1 trillion dollars. 
  • IBM will transition roughly 1/4th of its current workforce to the new company, along with 4600 of its IT clientele. 
  • The split will happen by the end of the year, and both companies will work closely together despite being separate entities. 

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