As a result, the final results and other disclosures for the 2020 third quarter may differ materially from this preliminary data. The separation is expected to be achieved as a tax-free spin-off to IBM shareholders, and completed by the end of 2021. We believe the future will be driven by hybrid cloud hence, the expansion of IBM Hybrid cloud practice is intrinsic to our strategy. Top cloud providers in 2020: AWS, Microsoft Azure, and Google Cloud, hybrid, SaaS players The cloud computing race in 2020 will have a definite multi-cloud spin. Industry observers said IBM’s sharper focus on hybrid cloud deployments could result in the new company collaborating with public cloud leaders as IBM pursues multi-cloud deployments intended to avoid vendor lock-in. Following separation, the companies together are initially expected to pay a combined quarterly dividend that is no less than IBM's pre-spin dividend per share. IBM's business, strategy and technology consultants help clients transform by modernizing their existing applications, and by building new AI-infused data analysis capabilities on the leading open hybrid cloud platform. With this acquisition, IBM can further advance its Hybrid Cloud and AI technology and reinforce its AIOps and AI-powered automation capabilities. It has also got a large number of common open source services for ubiquitous integration, management, security, and data management. IBM is also continuing to consolidate its shared services. Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 0 These are critical services that are core to client operations. Hybrid cloud growth and use to multi-cloud by corporations will be game-changers for IBM stock. The financial information for the quarter ended September 30, 2020 is based on the company's internal management accounts and reporting as of and for the 2020 third quarter. 1 IBM Voucher per participant. This creates two industry-leading companies, each with strategic focus and flexibility to drive client and shareholder value. The success of our IBM public cloud is foundational to our hybrid cloud strategy. Hands-on labs are limited to 10 participants, based on a first in, first served. IBM's multi-cloud management strategy makes sense given its history of managing IT complexity. De!ning the Hybrid Cloud A hybrid cloud is an environment that integrates traditional IT with a combination of public, private, or managed cloud services. "Client buying needs for application and infrastructure services are diverging, while adoption of our hybrid cloud platform is accelerating. Leveraging its long-term relationships with clients, IBM will continue to drive the innovation in hardware that enterprises rely on for their most mission-critical computing needs. For more details about IBM Cloud Private, visit here. The company has not yet completed its financial statement review procedures for the 2020 third quarter. Finally he proposed a way, creating IBM’s so-called hybrid multi cloud strategy. The separation is currently expected to be completed by the end of 2021. %PDF-1.3 %���� "A hybrid cloud strategy helps a company achieve its technical and business objectives more cost-efficiently," said Catherine. With over $20B in annual cloud revenue, IBM has built a leading enterprise hybrid cloud business. It has relationships with more than 4,600 technology-intensive, highly regulated clients in 115 countries, including more than 75% of the Fortune 100, a backlog of $60 billion, and more than twice the scale of its nearest competitor. IBM Multicloud Management Services allows your business to use multiple public clouds from many vendors, such as IBM, AWS, Azure, Google, Alibaba or others, to deliver its IT services. 169 0 obj <>/Filter/FlateDecode/ID[<6884970551DC8E737127761D019D72EE><1834E5A14D253547BAC3532D0C7FB241>]/Index[128 61]/Info 127 0 R/Length 155/Prev 436733/Root 129 0 R/Size 189/Type/XRef/W[1 2 1]>>stream These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; the company's failure to meet growth and productivity objectives; a failure of the company's innovation initiatives; damage to the company's reputation; risks from investing in growth opportunities; failure of the company's intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and data privacy considerations; fluctuations in financial results; the possibility that the proposed separation of the Managed Infrastructure Services unit of the company's Global Technology Services will not be completed within the anticipated time period or at all, the possibility of disruption or unanticipated costs in connection with the proposed separation or the possibility that the separation will not achieve its intended benefits; impact of local legal, economic, political, health and other conditions; adverse effects from environmental matters, tax matters and the company's pension plans; ineffective internal controls; the company's use of accounting estimates; impairment of the company's goodwill or amortizable intangible assets; the company's ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product quality issues; impacts of business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels and ecosystems; the company's ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities, and higher debt levels; legal proceedings and investigatory risks; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company's Form 10-Qs, Form 10-K and in the company's other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. pamurphy@us.ibm.com, Forward-Looking and Cautionary Statements. This includes a comprehensive range of as-a-service offerings, software, hardware and professional services that enable IBM to advise, move, build and manage cloud solutions across public, private and on-premises environments. As a global company with a very large number of clients across a multitude of industries, our goal is to get workloads in an optimal configuration that is efficient, flexible, and infused with AI. “We believe the future will be driven by hybrid cloud hence, the expansion of IBM Hybrid cloud practice is intrinsic to our strategy. IBM's software portfolio, focused on data and AI, automation, and security, enables the widest access to innovation through open source. IBM announced it will accelerate its hybrid cloud growth strategy to drive digital transformations for its clients. barbini@us.ibm.com, Investor Relations: +1 914-499-5800 �f�$��A�6 �w ��[�+�o��l ��������#Չ�L+� #b� The goal of the hybrid cloud is to get everything working together, with varying degrees of communication and data sharing to best run a company’s daily operations. The company also said it has more than 2,400 hybrid cloud customers, and has added more than 300 new partners using its or Red Hat’s hybrid cloud tools. Developers also. This includes streamlining its geographic model and transforming its go-to-market structure to better engage with and support clients. Following the completion of the separation, each company's dividend policy will be determined by its respective Board of Directors. "Our multi-year transformation created the foundation for the open hybrid cloud platform, which we then accelerated with the acquisition of Red Hat. For more information about IBM, visit ibm.com/news. This platform facilitates the deployment of powerful AI capabilities to enable the power of data, application modernization services, and systems. +1 914-499-6565 A platform made for the cloud you want Flexibility, responsiveness and cost are fueling your journey to cloud. J.P. Morgan Securities LLC and Lazard are serving as financial advisors for the transaction, with Paul, Weiss, Rifkind, Wharton & Garrison LLP acting as legal advisor. Finally he proposed a way, creating IBM’s so-called hybrid multi cloud strategy. The new company will be entirely focused on managing and modernizing client-owned infrastructures, a $500 billion market opportunity. This preliminary financial data should not be viewed as a substitute for all financial statements prepared in accordance with U.S. GAAP. Companies are in urgent need of a hybrid cloud architecture to manage the complexity brought by the multi-cloud," he said. Hybrid cloud is not only IBM’s go-forward focus for our clients, it is also our strategy internally. The acquisition represents IBM's transitions from software and services to a company fully focussed on hybrid cloud management by focusing on hybrid cloud, big data, and AI capabilities. NewCo will be able to better modernize infrastructures for an unparalleled roster of clients in all industries, with relationships that have been built over decades. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/ibm-strategic-update-2020. In other words, by building the tools necessary to migrate legacy applications into a format that’s optimized for OpenShift, IBM is giving companies an opportunity to move to a hybrid cloud environment that supports public and private cloud, and to leverage a multi To tackle the bottleneck, IBM offers its Cloud Pak solution, which is an artificial intelligence-infused software portfolio that runs on Red Hat OpenShift platform. As IBM is currently in its normal financial closing process, these are approximate figures and are subject to revision until IBM reports its full third-quarter results as planned later this month. As companies increasingly adopt a multi-cloud strategy, though, it is crucial to put in place an architecture designed to tie all these environments together and grow in-line with business needs. NewCo's services will enable enterprises to build agility and efficiency into their infrastructure and datacenters. IBM's secure, mission-critical public cloud is designed to provide all required regulatory controls, and offers clients a foundation of open source software, security leadership, and enterprise-grade infrastructure. ", "We have positioned IBM for the new era of hybrid cloud," said Ginni Rometty, IBM Executive Chairman. The proposed separation is expected to be effected through a pro-rata spin-off to IBM shareowners that will be tax-free for U.S. federal income tax purposes. These are all underpinned by the security, unmatched expertise in industry verticals, and deep commitment to open source innovation that clients expect from IBM. jonathan.adashek@ibm.com, Sarah Meron As part of this strategic acceleration, IBM is taking action to simplify and optimize its operating model for speed and growth. “ Our clients...need a hybrid and multicloud solution that can seamlessly incorporate their workloads across on-premise, private and public cloud environments. The hybrid cloud is a cloud computing strategy that integrates a fragmented IT environment composed of a mix of multiple cloud services and traditional on-premise infrastructure. From its single control point, you can: Infuse AI across your IT operations toolchain Automate time-consuming management tasks Forward-looking statements are based on the company's current assumptions regarding future business and financial performance. IBM's Systems business, integrated with the hybrid cloud platform, allows cloud-native developers to capitalize on the unique capabilities of IBM's hardware. The new company (to be named at a subsequent date) will immediately be the world's leading managed infrastructure services provider. This platform allows clients to "write-once/run-anywhere," and enables a hybrid cloud approach that drives up to 2.5 times more value for clients than a public cloud-only solution. IBM's hybrid model to help debottleneck the multi-cloud era-More efforts are needed by Chinese enterprises to unlock the value of the hybrid cloud, as it is poised to be a driver of digital transformation, said Alain Benichou, CEO of IBM Greater China Group. NewCo will also be able to partner fully across all cloud vendors, opening new avenues for growth, while maintaining a strong strategic partnership with IBM and continuing to serve existing and new clients. Jonathan Adashek +1 347-891-1770 The new solutions include containerized software across IBM IT Infrastructure and advancements in data storage for containers. ARMONK, N.Y., Oct. 8, 2020 /PRNewswire/ -- IBM (NYSE: IBM) announced today it will accelerate its hybrid cloud growth strategy to drive digital transformations for its clients. IBM is acquiring Instana, an applications performance management startup. Additionally, IBM will separate its Managed Infrastructure Services unit of its Global Technology Services division into a new public company ("NewCo"). IBM's open hybrid cloud platform architecture, based on Red Hat OpenShift, works with the entire range of clients' existing IT infrastructures, regardless of vendor. h�b```f``�a`c`b`@ �;��X�6��,��,�8-ټ�Z��X��q53m��̜7��ʗ�p �.�Ua)7���5x. This focus will result in greater value, increased innovation, and faster execution for our clients. With tighter integration and focus on its open hybrid cloud and AI solutions, IBM will move from a company with more than half of its revenues in services to one with a majority in high-value cloud software and solutions. Media: ", IBM, a Leading Hybrid Cloud and AI Company. IBM Digital Academy - IBM Hybrid Multi-Cloud with Power & Red Hat Learn with IBM & Arrow about the IBM Hybrid Multi-Cloud Strategy on Power & Redhat followed by 3 hands-on labs with focus on IBM PowerVC, Openshift & Ansible on Power! The IBM Cloud Pak® for Multicloud Management offering is an application-centric, AI-driven management platform designed to provide full visibility and control wherever your workloads run. Opinion: IBM leveraging Red Hat for hybrid multi cloud strategy Estimates say 80% of enterprise software is still not cloud ready By Bob O'Donnell on August 6, 2019, 11:17 188 0 obj <>stream NewCo will have greater agility to design, run and modernize the infrastructure of the world's most important organizations. Hybrid cloud describes a variety of cloud types. IBM will focus on its open hybrid cloud platform and AI capabilities. In connection with today's announcement, IBM is providing preliminary financial results for the third quarter ended September 30, 2020. Additionally, IBM will separate … By making it easier for businesses to connect open hybrid cloud computing using AT&T Multi-access Edge Computing, a low-latency, private cellular network edge environment, IBM and AT&T will be able to help businesses across all industries more rapidly Sarah.meron@ibm.com, Edward Barbini As two independent companies, IBM and NewCo will capitalize on their respective strengths. Both companies will be on an improved growth trajectory with greater ability to partner and capture new opportunities – creating value for clients and shareholders. The transaction is subject to customary closing conditions, including Form 10 registration with the U.S. Securities and Exchange Commission, receipt of a tax opinion from counsel, and final approval by IBM's Board of Directors. It helps organizations to have a multicloud without having a hybrid cloud, or to have a multicloud as part of a hybrid cloud. NewCo, the Leading Managed Infrastructure Services Company. About IBM IBM, a Leading Hybrid Cloud and AI Company IBM will focus on its open hybrid cloud platform, which represents a $1 trillion market opportunity. Wipro is part of IBM’s hybrid cloud ecosystem, an initiative to support global system integrators and independent software vendors to help clients modernize workloads with Red Hat OpenShift for any cloud environment, including the IBM public cloud. IBM’s cloud strategy focuses on hybrid and multi cloud environments that allow enterprises to use platforms and services they have already invested in. IBM recently announced a definitive agreement to acquire Instana, a German-American software firm that specializes in developing APM software. IBM can help unlock your cloud infrastructure by harnessing the power of the right hybrid cloud strategy, so that you can maintain stability. IBM expects to report revenue of $17.6 billion, GAAP diluted earnings per share from continuing operations of $1.89, and operating (non-GAAP) earnings per share of $2.58. IBM will host an investor webcast beginning at 8 a.m EDT, Thursday, October 8, 2020. Girl City Drone and Phone Fantastic Protected Species Life and Art Asia Featured One-time transaction costs are expected to include tax charges, operational separation activities, and other customary items. Now is the right time to create two market-leading companies focused on what they do best. The preliminary results of operations are subject to revision as the company prepares its financial statements and disclosure for the 2020 third quarter, and such revisions may be significant. Any forward-looking statement in this release speaks only as of the date on which it is made. IBM will focus on its open hybrid cloud platform, which represents a $1 trillion market opportunity. +1 202-528-7479 Building on IBM's hybrid cloud foundation, the company acquired Red Hat to unlock the full value of the cloud for … IBM is updating its cloud portfolio with new capabilities to help clients move to a hybrid cloud environment, according to a press release on the company’s website. %%EOF Patricia Murphy As IBM transitions from software and services to a company fully focussed on hybrid cloud management, it announced its intention to buy Instana, an applications performance management startup with a cloud native approach that fits firmly within that strategy. IBM will also have more than 50% of its portfolio in recurring revenues. With a streamlined business model, NewCo will create value by helping enterprises optimize their performance through AI and automation. 128 0 obj <> endobj endstream endobj startxref Except as required by law, the company assumes no obligation to update or revise any forward-looking statements. The result will be an enhanced financial profile with a clear trajectory for improved revenue and profit growth. NewCo will extend its leadership through increased investment in the next generation of transformational managed infrastructure services, with more opportunity for margin expansion, profit growth and cash generation. Red Hat OpenShift is the industry's leading enterprise Kubernetes platform. "IBM is laser-focused on the $1 trillion hybrid cloud opportunity," said Arvind Krishna, IBM Chief Executive Officer. IBM will accelerate clients' digital transformation journeys, and NewCo will accelerate clients' infrastructure modernization efforts. It will strengthen our relationship with IBM and help accelerate our clients’ transformation journey across hybrid cloud environments.” Building on IBM's hybrid cloud foundation, the company acquired Red Hat to unlock the full value of the cloud for clients, further accelerating adoption of the platform. - IBM to focus on hybrid cloud growth, a $1 trillion market opportunity, - New public company to launch as world's #1 Managed Infrastructure Services provider, - IBM also announces preliminary 2020 third-quarter results, IBM Launches New Innovative Capabilities for Watson, https://www.ibm.com/investor/events/ibm-strategic-update-2020. In a hybrid cloud environment, an organization uses a blend of public and private clouds, on or off premises, to meet its IT needs. IBM and Bharti Airtel have completed the first phase of Airtel’s Open Hybrid Cloud Network built with IBM and Red Hat's portfolio of hybrid cloud and cognitive enterprise capabilities, announced IBM on Tuesday. The IBM Cloud Pak advantage Beyond the sheer complexities of implementing, managing and maintaining hybrid cloud environments is the fact that, like organizations, no … This simplified and focused operating model will support accelerated innovation for the hybrid cloud, and provide more flexibility to increase investment in growth areas. IBM is betting big on the next emerging cloud market -- the “hybrid” multicloud. At the same time, our managed infrastructure services business has established itself as the industry leader, with unrivaled expertise in complex and mission-critical infrastructure work. The IBM z15™ platform can transform your application and data portfolio with innovative data privacy, enterprise security, and cyber resiliency capabilities – all delivered through a hybrid cloud. It will leverage its unrivaled expertise to offer hosting and network services, services management, infrastructure modernization, and migrating and managing multi-cloud environments. The companies did not reveal the purchase price. h�bbd``b`�$��~ �&$x�����:"�@�����R$X�A� �$��@b5 1?��m- 1�y� nH����,U V;�� Revenue growth is likely in 2020-2021. IBM's unique full-stack capabilities and large ecosystem of partners and ISV's deliver innovation and enable clients to unlock the full value of the hybrid cloud and their data. with IBM’s technical strategy. 'S leading managed infrastructure services are diverging, while adoption of our public. Cloud hence, the final results and other customary items services, and.. 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