IBM “NewCo” Announcement

Recently, IBM announced an important organizational change regarding their managed infrastructure services business.

TIP #60 October 2020: IBM's managed infrastructure services will become independent. What are the consequences for your IBM software portfolio and for your organisation?

They stated that the managed infrastructure services business of their Global Technology Services (GTS) segment will become an independent company, which they are initially referring to as “NewCo.” IBM expects the new company to be created sometime toward the end of 2021:  

  • IBM will sharpen its focus on its open hybrid cloud platform and AI capabilities.
  • The new company “NewCo” will focus on delivering managed infrastructure services.

NewCo: A global leader in managed infrastructure services according to IBM: 

“NewCo has a bright future as an independent company. NewCo has proven expertise in successfully managing the complex and mission-critical infrastructure of the world’s most important organizations. On its first day, NewCo will be the leading company in managed infrastructure services with nearly $19 billion in annual revenue—twice the size of its nearest competitor. 

NewCo already serves more than 4,600 clients—including more than 75 percent of the Fortune 100. Its global reach will span 115 countries and include about 90,000 of our teammates who have deep expertise in a wide array of industries, doing important, technology-intensive work.” 

Are there consequences for your IBM software portfolio? Yes, there are! 

Many IBM software contracts between the IBM Software Group and IBM GTS are based on special (IBM internal) conditions and are not audited. These special Terms and Conditions will disappear very soon and will evolve fast to normal commercial competitive conditions. 

It is necessary for IBM’s customers to determine their real compliance position regarding IBM software. This should be done on a short notice, before the independency of NewCo. 

What does this mean for your organisation? 

For more information on this announcement and your IBM software consequences, please contact Softline Solutions. We can advise and support you in making your best choice. Helping you to be compliant and save money.