Rometty will depart in April after four decades with the company. She will be succeeded by Arvind Krishna, currently senior vice-president of cloud and cognitive software. Jim Whitehurst, chief executive of recent IBM acquisition Red Hat, has been appointed president. IBM’s shares were up four per cent following the announcement. (The Wall Street Journal)
Talking point: Rometty leaves the company after a challenging eight years as chief executive. During her tenure, IBM’s shares fell more than 25 per cent, while many other tech companies saw massive growth. The new leadership appointments further highlight IBM’s hopes of reviving the company by betting on cloud computing. Following the July 2019 Red Hat acquisition, IBM reported its cloud and computing software segment brought in US$7.2 billion in revenue in the fourth quarter, while Red Hat revenue was up 24 per cent. Still, the 108-year-old company faces stiff competition in one of technology’s hottest sectors, of which Amazon owns nearly half—ahead of Microsoft, Alibaba and Google.