IBM names Martin Schroeter as CEO of NewCo spinout

Schroeter will take the helm at the new IT management infrastructure arm.
Written by Charlie Osborne, Contributing Writer

IBM has named Martin Schroeter as the chief executive of the firm's new managed infrastructure business unit. 

Announced on Thursday, IBM said Schroeter will take on the role of CEO at NewCo, a proposed spinoff and separation of the tech giant's managed infrastructure services business. 

Effective January 15, Schroeter will be responsible for leading the NewCo public company, which will manage data centers and cloud infrastructure for clients.

Schroeter has previously served as IBM's senior VP of Global Markets and also acted as chief financial officer (CFO) between 2014 and 2017, managing an asset base of over $37 billion, before leaving IBM in June 2020. 

Now, upon his return, Schroeter will focus on developing the spinoff company, giving IBM the opportunity to focus on its cloud business. 

As previously reported by ZDNet, IBM announced the separation back in October. The company said at the time that the creation of NewCo will help IBM streamline its operating model, consolidate shared services, and concentrate on cloud and new markets, including artificial intelligence and hybrid services. 

"Martin has the strategic vision and business judgment to realize NewCo's enormous potential as the global leader in managed infrastructure services," commented Arvind Krishna, IBM CEO. "He is an inspiring, results-driven executive and the right CEO to lead NewCo through the spin-off process and beyond."

It is expected that the split will take place before the end of 2021. 

In related IBM news this week, the company has also appointed Gary Cohn as vice chairman and a member of the firm's executive leadership team, where he will work with Krishna on new business initiatives. 

Cohn formerly served as director of the National Economic Council under the Trump Administration. 

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