Enterprise hits and misses – IBM spins off a legacy business, ERP vendors get a re-platform debate, and hybrid SaaS gets its due

Lead story – Don’t be a ERP re-platform sheep – or a pure SaaS sheep either.

MyPOV: Two diginomica stories challenged buyers not to accept the status quo.

Start with Kurt’s When – and why – hybrid SaaS might be a better option. Kurt critiques SaaS multi-tentant purists. Architectural options have become more nuanced – opening up SaaS possibilities in regulated industries, for example.

I believe that’s a win for customers, but it does require grasping what’s under the hybrid SaaS hood. Kurt:

A better SaaS alternative is a hybrid model in which parts of an application, such as the Web UI, mobile interface and administrative console are delivered from shared infrastructure while the backend databases and business logic run on dedicated infrastructure. For example, Generis CARA, a content management SaaS that targets highly regulated industries like life sciences and financial services provides two classes of service that

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IBM Bets Big on $1T Hybrid Cloud Market With Business Spin-off

There have been major developments this year amid the coronavirus crisis in the technology sector, from NVIDIA acquiring ARM Holdings, Oracle and Walmart’s stake in TikTok, and Microsoft’s Bethesda acquisition to even the most recent rumored deal of AMD looking to acquire its rival Xilinx for $30 billion.

News of merger, acquisition and spin-off keep ticking. Coronavirus crisis has compelled companies globally to rethink business strategies and alter their spending patterns. International Business Machines Corporation IBM isn’t immune to the trend.

The company recently announced the spin-off of its legacy Managed Infrastructure Services business in a bid to accelerate its hybrid cloud growth strategy, with a focus on enabling clients with accelerated digital transformation.

The company’s Managed Infrastructure Services, a unit of its Global Technology Services division, will be spun off into a new public company or NewCo (set to be named later). The deal is anticipated to “be achieved

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IBM To Accelerate Hybrid Cloud Growth Strategy And Execute Spin-Off Of Market-Leading Managed Infrastructure Services Unit

ARMONK, N.Y., Oct. 8, 2020 /PRNewswire/ — IBM (NYSE: IBM) announced today it will accelerate its hybrid cloud growth strategy to drive digital transformations for its clients. Additionally, IBM will separate its Managed Infrastructure Services unit of its Global Technology Services division into a new public company (“NewCo”). This creates two industry-leading companies, each with strategic focus and flexibility to drive client and shareholder value.

The separation is expected to be achieved as a tax-free spin-off to IBM shareholders, and completed by the end of 2021.

“IBM is laser-focused on the $1 trillion hybrid cloud opportunity,” said Arvind Krishna, IBM Chief Executive Officer. “Client buying needs for application and infrastructure services are diverging, while adoption of our hybrid cloud platform is accelerating. Now is the right time to create two market-leading companies focused on what they do best. IBM will focus on its open hybrid cloud platform and AI capabilities.

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