29,000 IBM Employees In India May Work Only On Cloud; Aims $1 Trillion Hybrid Cloud Market
Yesterday we reported how the International Business Machines (IBM) has announced that it will split into two public companies. Basically, the new entity will focus on higher-margin cloud services.
On Friday, Arvind Krishna, Chief Executive Officer (CEO) of IBM said around one-fourth of its employees in India are expected to be part of the new entity.
Read on to know more about IBM’s plans for India…
IBM’s Split And Its Effect On Indian Employees and Infrastructure!
Currently, telecom, banking, and government sectors are driving the adoption of hybrid cloud in India, Krishna said. This split will have “no material impact” on India operations of IBM, he added.
IBM has a global workforce count of 3.5 lakh. Employees in India constitute one-third of this workforce (approx 116,666 employees).
IBM hasn’t revealed the number of Indian employees that will be a part of the new entity ‘NewCo’ but it is estimated to be 29,000 (one-fourth of the employees in India).
So far, the new company is yet to be named, so it is referred to as “NewCo”.
Arvind Krishna is the first Indian-origin CEO to lead the 109-year-old IBM. Since his joining at the American IT giant in 1990, he has been a part of the developing and expanding of new markets for the company in artificial intelligence, cloud, quantum computing, and blockchain.
He has headed IBM’s cloud and cognitive software unit. In the acquisition of $34-billion Red Hat which closed in July 2019, Krishna was the principal architect. Ever since he was appointed as the CEO in January 2020, Krishna is trying to push the company to focus on hybrid cloud.
Addressing the opportunity in India, Krishna said, “We are committed to our footprint in India. We also have a very large R&D presence in India and as our business begins to grow, we expect opportunity for people in India both in terms of employment and growth.”
Krishna said, “IBM is laser-focused on the $1 trillion hybrid-cloud opportunity.”
He added, “Client buying needs for application and infrastructure services are diverging, while adoption of our hybrid cloud platform is accelerating. Now is the right time to create two market-leading companies focused on what they do best.”
What You Need To Know About IBM’s ‘New Co’!
IBM is aiming to focus on hybrid cloud and AI solutions by engaging in this split.
IBM’s new company will handle the ‘Managed Infrastructure Services’ unit of its global technology services division. This new spin-off is expected to come into force by the end of 2021.
According to IBM, this unit already has more than 4,600 clients in 115 countries and an order backlog of $60 billion.
Krishna said, “The new company will have greater agility to design, run and modernize the infrastructure of the world’s most important organizations. Both companies will be on an improved growth trajectory with greater ability to partner and capture new opportunities.”
The idea behind IBM’s split is that it is trying to “simplify and optimize its operating model for speed and growth. This includes streamlining its geographic model and transforming its go-to-market structure to better engage with and support clients.