IBM has announced plans to “spin out” its managed infrastructure service unit which accounts for a quarter of its revenue.
Big Blue’s share price increased by 8% as the investors welcomed the plan as the managed service unit has become a drag on IBMs growth.
The rise of the cloud computing industry has seen customers reduce their spending on in-house technology and shifting it to cloud companies like Amazon and Microsoft.
The spin out would allow IBM to invest in cloud and AI businesses as they return to more sustainable growth.
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