IBM Moves Forward With NewCo And Hybrid Cloud Strategy, Naming New CEO For The Spinoff

IBM recently announced that it was shifting its business to focus on open hybrid cloud and AI solutions, separating the Managed Infrastructure Services unit of its Global Technology Services division into a new public company. The spinoff is part of IBM’s effort to accelerate its hybrid cloud growth strategy and drive digital transformation.

The company—which is being called “NewCo” for now—will focus on managing and modernizing client-owned infrastructures, offering hosting and network services, services management, infrastructure modernization, and migrating and managing multi-cloud environments. It already has relationships with more than 4,600 clients in 115 countries, including more than 75% of the Fortune 100 and a backlog of $60 billion.

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Aiming to be the world's leading managed infrastructure services provider, NewCo will use AI and automation to optimize the performance of its enterprise clients, ultimately driving agility and efficiency for their infrastructure and data centers.

And now IBM has announced that Martin Schroeter will be the Chief Executive Officer of NewCo, effective January 15. Schroeter joined the company in 1992 and has served in numerous roles in Japan, the United States, and Australia. Most recently, he was IBM's Senior Vice President, Global Markets where he was responsible for IBM's global sales, client relationships and satisfaction, and worldwide geographic operations. In addition, he was in charge of IBM's marketing and communications functions, as well as building the company's brand and reputation globally.

Schroeter was also IBM's CFO from 2014 to 2017, and prior to that, served as general manager of IBM Global Financing, where he managed a total asset base in excess of $37 billion.

"Martin is a world-class leader and is uniquely qualified to drive the long-term success of the new, independent company," said Arvind Krishna, Chairman and CEO of IBM. "He has a deep understanding of the industry and has earned the trust of our clients and of the investor community. Martin has the strategic vision and business judgement to realize NewCo's enormous potential as the global leader in managed infrastructure services.”