IBM splits into two companies

IBM announced in October that it is spinning of its Managed Infrastructure business into a new public company, so creating two companies. IBM is a big, successfull organization, but it's facing significant challenges in trying to manage two very different businesses and operate within two very different operating models.

The new company will focus on modernizing customers' legacy infrastructure and moving it to the cloud.
The remaining company, still named IBM, will accelerate its focus on its open hybrid cloud platform and Artificial Intelligence (AI).

The shareholders will benefit, as a technology-based stock is valued higher than a service-based company.