IBM Splits to Focus on Cloud, AI, and It's Good News, Say Industry Watchers | In the News

The managed infrastructure services of the segment will become an independent entity by the end of 2021. The segment accounts for about $19 billion in annual revenue. It caters to 4,600 clients and employs 90,000 people.

Chirajeet Sengupta, partner, Everest Group, said in a note that at scale these businesses, services and software, require different investment strategies, and this move can go a long way in resolving IBM’s traditional dilemma.