The head of IBM Ginny, Rometty resigns

Moscow, January 31 – “News.Economy,” CEO Ginny Rometty is retiring, having worked at the head of a legendary technology company for eight years. In place of Rometty will come 57-year-old Arvind Krishna, senior Vice President of IBM cloud and cognitive solutions.

according to IBM, Jeannie Rometty to the end of the year will remain Chairman of the Board of Directors of IBM, and then leave the company after running it for a total of almost 40 years. It is considered one of the most prominent women CEOs in this business where most senior positions are still held by men.

However, the leadership of Rometti not brought the company the breakthrough. On the contrary, over the past eight years, IBM is rapidly lagged behind other technology companies. During the reign of Rometti IBM shares fell more than 25%, behind securities other tech giants. For comparison, Microsoft stock over the same period soared by more than 500%, while the Nasdaq Composite index, which is dominated by the paper technology sector, jumped by about 250%.

IBM Shares Thursday after the main session rose more than 3% on news of the resignation of Rometti. The reasons for her departure at the time of publication of the material was unknown. According to the chief analyst of the research company IDC Frank gens (Frank Gens), writes Engadget, Rometty decided to retire. Official confirmation of this information yet.

“I believe that Rometty introduced a lot of changes — said an analyst at Stifel Financial Corp. David Grossman. — Some argue that it is not fast enough and not enough made any changes, but I think the company’s business began to change under her leadership.”

During her tenure as General Director of the company tried to adapt to changes in the technology industry, including the growth in the value ofblachnik services. IBM bought a few connected with cloud technologies assets, including Red Hat, which is developing a cloud based application. This transaction led to the fact that in the last quarter, the company returned to moderate growth in revenues. Nevertheless, analysts say it is too early to judge whether Red Hat to justify the $34 billion that IBM paid for her business in October 2018

Judging by the new leadership, IBM sees its future with the rapidly developing field of cloud computing, where it lags behind competitors like Amazon.com Inc. and Microsoft.

In recent years, Rometty emphasized that IBM will become a powerful rival in this segment, but today its sale of cloud services is still inferior to the sales of competitors. According to analyst firm Gartner Inc. in the list of the largest providers of public cloud infrastructure, IBM is in the 5th place, and its market share is less than 2%.

Many analysts believed that Rometty sooner resigns, bowing to tradition, according to which its predecessors have resigned upon reaching the age of 60.

as CEO of IBM will come Arvind Krishna, who now heads the cloud services division and cognitive SOFTWARE. Krishna joined IBM in 1990 and During his career he has held various senior positions, including as Director of development. On account of his 15 patents. It will be the tenth CEO of IBM.

In January 2019 Krishna was appointed senior Vice President for cloud technologies and cognitive FOR. After IBM agreed to purchase Red Hat, Krishna helped to ensure that regulators in the US, Europe, Asia and other regions of the world approved the transaction.

an Analyst at Wedbush Securities, Moshe Katri called the appointment of Mr. Krishna’s “long-awaited, but delayed change of leadintroduction” adding that when Mrs. Rometty IBM “experienced a painful, slow transition period to correspond to the new technological landscape.” Other experts speak of Mrs. Rometty less critical. “IBM looks a lot better now than when she came in, she should be commended for it,” says IDC analyst Frank Jens.

President of IBM appointed Jim am Whitehurst, CEO of Red Hat. For the first time in history, IBM created a leadership structure with separate positions of CEO and President. Krishna and am Whitehurst will form a two-pronged management team: the first big experience at IBM and the second recently joined the IBM will be engaged in revival of the company.

Virginia Rometty announced his retirement from IBM a few days after the publication of the financial report of the company for the fourth quarter of 2019 the Results of its operations for the period exceeded analysts ‘ expectations – in particular, revenue from cloud business grew by 21% to $6.8 billion It was the first time in six quarters. Analysts at Bank of America predict that in the period prior to August 2020 IBM shares could rise by 25.7%. If this forecast comes true, the stock price will be $170 per paper. Text: News.Economy