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IBM to Spin Off Legacy IT Business, Pegging Future on Cloud (3)

Oct. 8, 2020, 6:15 PM

International Business Machines Corp. is spinning off a slower-growth business that manages corporate computer systems so it can focus on the boom in demand for cloud services and step up competition with Amazon.com Inc. and Microsoft Corp.

The new unit, which is currently part of IBM’s global technology services division, handles day-to-day infrastructure service operations, like managing client data centers and traditional information-technology support for installing, repairing and operating equipment. It serves 4,600 clients and has an order backlog of $60 billion, according to a statement from IBM Thursday.

The shift essentially divides IBM into two, splitting its legacy ...

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