What CIOs can expect from IBM’s managed infrastructure spinoff

Later this year, IBM will spin out its managed infrastructure services operations, pitching for new business in fields such as cloud reversibility and data management.

What CIOs can expect from IBM’s managed infrastructure spinoff
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CIOs who depend on IBM to manage their IT infrastructure have been in legacy limbo since Big Blue first announced it would shed its managed infrastructure activities as a separate company in order to zero in on hot markets for technologies such as artificial intelligence and the cloud.

In the four months since IBM announced the spinoff, hints as to how the new entity will operate are coming into focus, with IBM seeing a big opportunity to offer new services in fields such as cloud reversibility or data management at the network edge.

Latest in a series of spinoffs

IBM customers are no strangers to Big Blue’s long-lived appetite for strategic divestiture. The company that became IBM was formed from the 1911 amalgamation of three activities, but in 1934 it sold one of those, weighing machines, and in 1958 another, time-recording, to concentrate on the third, computing.

Since then, the pace of selloffs has accelerated. IBM sold its printer manufacturing business in 1991 to form Lexmark. It sold its hard disk business, employing 18,000, to Hitachi Global Storage Technologies in 2002. PC manufacturing was next, when Lenovo bought a 90% stake in IBM’s $9 billion division in 2004, returning in 2014 to buy IBM’s x86 server business too. That same year, IBM paid GlobalFoundries $1.5 billion to take away its loss-making chip manufacturing business.

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