IBM is splitting itself in two, spinning off its legacy technology services business to focus on cloud computing and artificial intelligence, a move that reflects how decisively computing has shifted to the cloud.
The split is IBM’s effort to grab more of that fast-growing business and thrive amid the market leaders, Amazon Web Services, Microsoft and Google.
The business retaining the IBM name will include its cloud operations, along with its hardware, software and consulting services units. They represent about three quarters of the current company’s revenue.
The business to be spun off, in a company that has not yet named, is IBM’s basic technology services business, which maintains, supports and upgrades the computing operations of thousands of corporate customers.
That business is sizable, with sales of about $19 billion a year, but it’s not where the growth opportunities lie in the technology business.
The split comes as