On the Q4 2020 earnings call, Krishna estimated that IBM's overall revenue would rise by mid-single-digit levels in 2022 and beyond after the spinoff, growth likely driven by the hybrid cloud. Nonetheless, IBM will also design and operate IT systems through business services, build supercomputers within its systems division, and offer payment options through global financing. This means that after completion of the spinoff, cloud and cognitive software will emerge as IBM's largest division. NewCo represents $19 billion of the company's $73.6 billion in revenue, only slightly below the $23.4 billion that the cloud and cognitive software division generated in 2020. Red Hat brought IBM into the hybrid cloud market, which it describes as a "$1 trillion market opportunity." With a hybrid cloud system, public and private clouds seamlessly and securely interact, a feature most cloud systems need. Krishna, who headed IBM's cloud and cognitive software division at that time, spearheaded this acquisition. Looking to align the company with the current tech environment, IBM spent $34 billion to buy cloud giant Red Hat in 2019. As the tech industry evolved, its stock peaked back in 2013 and steadily slid amid slowing growth. IBM spent most of the last decade struggling as a business that helped companies design and run IT systems and businesses. ![]() Hence, the degree to which IBM can remake itself as a cloud company will likely determine how much its stock grows over the next five years. ![]() The company's moves to increase its cloud focus and spin off a key legacy business will probably make IBM a different tech stock over time. International Business Machines ( IBM -1.44%) has redefined itself since Arvind Krishna became CEO in April.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |