IBM to spin off $19B business to focus on cloud computing

ARMONK, N.Y. (AP) — IBM says it is breaking off a $19 billion chunk of its business to focus on cloud computing. The 109-year-old tech company said Thursday it is spinning off its managed infrastructure services unit into a new public company, temporarily named NewCo. The separation is expected to take effect by late 2021. IBM CEO Arvind Krishna said the split will help IBM focus on its cloud platform and artificial intelligence, while the newly formed company will provide services to manage the infrastructure of businesses and other organizations. IBM has worked to strengthen its cloud business but has struggled to compete with top cloud rivals Amazon, Microsoft and Google.