On Thursday, October 8, 2020, IBM announced its plans to spin off its managed infrastructure services business into a new public company. Earlier in the year, new CEO Arvind Krishna announced layoffs for an unspecified amount of IBM’s workforce amid the COVID-19 crisis and following several years of revenue decline. It appears this latest move further slims down IBM’s organization to help adjust more quickly to changing market dynamics. The new public company has yet to be named — but IBM is using the interim name NewCo. NewCo is now free to develop services offerings independent of IBM products and services.
This past Friday, Forrester published a ForresterNow piece — IBM Gets Leaner by Spinning Off GTS — that went through the key components of this announcement for you. This ForresterNow story digs into:
- What’s staying and what’s going.
- The big picture of IBM.
- The key questions for NewCo.
As always, if you’re a Forrester client with inquiry access, feel free to schedule a call with any of us to discuss this latest announcement.