ARMONK – IBM announced that it will separate its Managed Infrastructure Services unit of its Global Technologies division into a new public company.
The separation is expected to be achieved as a tax-free spin-off to IBM shareholders, and be completed by the end of 2021.
IBM employs 4,000 people in its Poughkeepsie facilities.
“IBM’s intention to split into two companies was just announced and we are all waiting for more details and by we, I think that includes IBM employees globally,” said Ron Hicks, assistant Dutchess County executive for economic development.
“First and foremost, IBM’s System Z has continuously stabilized IBM with increased revenue and business growth. Not only is the Z critical to cloud computing but also 90 percent of the world’s financial institutions that use the system to process secure transactions. If you have a smartphone there’s a good chance a transaction you made today has passed through a mainframe made in Poughkeepsie. IBM also has Cloud computing centers and a new Quantum computation center in Poughkeepsie,” he said.
Hicks also said, “Bottom line, Poughkeepsie is very relevant to IBM’s core and thus its future. We look forward to working closely with IBM to help their business grow and create more jobs in Dutchess County.”