IBM builds out executive team for managed services spin-off company
The broader leadership team for IBM's managed services spin-off company is starting to take shape, with two key executive appointments announced on Wednesday. The spin-off, which has yet to be named and is referred to by IBM as NewCo, is set to formally become an independent company by the end of 2021.
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IBM said it has named Elly Keinan as group president of the new company while Maria Bartolome Winans was appointed chief marketing officer. Martin Schroeter assumed the role of the new company's chief executive on January 15.
In October, IBM revealed its plans to spin off its managed infrastructure services unit into a new public company in order to focus more squarely on its hybrid cloud business, which includes Red Hat. When the managed infrastructure company is spun off, IBM will transition from being a company with half its revenue in services to one with more than 50% of sales from recurring revenue.
The new company, which will be tax free to shareholders, will focus on managing data centers and cloud infrastructure for clients. The spin-off will have more than 4,600 highly regulated customers in 115 countries, and roughly 90,000 employees. IBM said the managed infrastructure unit will have more than 75% of the Fortune 100 as customers and a backlog of $60 billion.
According to IBM, the managed infrastructure unit will be able to move more quickly to modernize infrastructure as well as partner with all cloud providers. The new company will also be a partner of IBM post split.