With Spin-off, IBM Finally Embraces a Cloud and AI-first Future

13 Oct 2020
by Ashwin Venkatesan, Nitish Mittal, Sarweshwer Gupta

IBM caused a stir in the market when it announced its plan to spin off the managed infrastructure services business of its Global Technology Services (GTS) division. The move is in line with new CEO Arvind Krishna’s strategy for laser-sharp focus on the cloud and AI business – the cornerstone of IBM’s next phase of growth. With this move, IBM can position itself as partner of choice with complete focus on helping enterprises succeed in a post-digital transformation era through its hybrid cloud and AI capabilities.

In this viewpoint, we explore developments in both the market and within IBM that led to this move and discuss potential impacts for IBM clients.


Industry: IT services

Geography: Global


In this viewpoint, we bring forward:

  • Factors leading up to the spin-off
  • IBM’s goal to create the highway for next phase of its growth
  • Implications for IBM clients


Application Services

Cloud & Infrastructure Services

Digital Services

Enterprise Platform Services

Banking & Financial Services ITS

Healthcare ITS

Insurance ITS

Life Sciences ITS

Sourcing and Vendor Management


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