IBM breaks into two: 10 ‘biggest numbers’ you need to know.
IBM’s 109-year-old IT giant is breaking into two. The company will list its IT infrastructure service unit as a separate company with a new name. The IT infrastructure unit offers outsourcing services, including technical support to cloud services. The change is the fourth big transition for IBM and is expected to boost its outlook against rivals such as Amazon , Microsoft and Google. In a blog, Chief Executive Officer (CEO) Arvind Krishna called the move a “important change” in the business model of the company. The company is now preparing to concentrate on open hybrid cloud and AI solutions that will account for more than half of its recurring revenues. The stock markets cheered the news, with IBM’s stock up. Here are all the big numbers you need to know about the break-up.
IBM’s sales after spin-off
$59 billion: IBM will have some $59 billion in sales after the spin-off.
Sales of the new company
$19 billion: $19 billion in revenue from the new company.
How long the separation will take
2021: The spin-off is expected to be done by the end of next year.
Number of employees clearly working
352,000: IBM currently has 352,000 employees
Number of staff of the new company
90,000: The new company will have 90,000 staff and its management structure will be decided in a few months.
Client numbers of the new business
4,600: The new organization will have 4,600 major business clients.
The Customer Spreaf of New Business
115 countries: the clients of the new organisation will be spread across 115 countries.
$60 billion: the new company has a backlog of $60 billion for business.
IBM’s not-so-shing quarters
29 quarters: IBM’s revenues has shrunk in 29 of the past 33 quarters
$5 billion: The company estimates $5 billion
in costs related to separation and operational change.