RESEARCH TRIANGLE PARK – IBM’s announcement today to spin off a new company focusing on technology infrastructure services is triggering a lot of questions, especially in RTP where much of the Global Technology Services group that is being split is based.
So, far there’s no new name other than a “NewCo” placeholder.
Here’ is what IBM disclosed about the new venture:
“NewCo, the Leading Managed Infrastructure Services Company”
- The new company (to be named at a subsequent date) will immediately be the world’s leading managed infrastructure services provider. It has relationships with more than 4,600 technology-intensive, highly regulated clients in 115 countries, including more than 75% of the Fortune 100, a backlog of $60 billion, and more than twice the scale of its nearest competitor.
- The new company will be entirely focused on managing and modernizing client-owned infrastructures, a $500 billion market opportunity. It will leverage its unrivaled expertise to offer hosting and network services, services management, infrastructure modernization, and migrating and managing multi-cloud environments. These are critical services that are core to client operations.
- With a streamlined business model, NewCo will create value by helping enterprises optimize their performance through AI and automation. NewCo’s services will enable enterprises to build agility and efficiency into their infrastructure and datacenters. NewCo will be able to better modernize infrastructures for an unparalleled roster of clients in all industries, with relationships that have been built over decades.
- NewCo will extend its leadership through increased investment in the next generation of transformational managed infrastructure services, with more opportunity for margin expansion, profit growth and cash generation.
- NewCo will also be able to partner fully across all cloud vendors, opening new avenues for growth, while maintaining a strong strategic partnership with IBM and continuing to serve existing and new clients.