IBM has appointed Martin Schroeter as CEO of NewCo -- the Managed Infrastructure Services business unit that IBM plans to spin off later this year. NewCo is a placeholder name until the spin-off actually occurs. Schroeter's appointment becomes effective January 15, 2021.
Key services of the NewCo spin-off will include hosting and network services, services management, infrastructure modernization, and migrating and managing multi-cloud environments. The business unit has a $60 billion backlog and 4,600 customers, IBM says.
Schroeter's appointment comes just days after IBM announced the appointment of former Goldman Sachs president Gary Cohn to the position of vice chairman.
Who Is Martin Schroeter?
Schroeter is a familiar leader within the halls of IBM. From December 2017 to April 2020, he was IBM's senior vice president, global markets. At the time he led IBM's global sales, client relationships and satisfaction, and worldwide geographic operations, before leaving the company in June 2020.
Schroeter started with IBM in 1992, and served in numerous roles in Japan, the United States and Australia.
He was IBM's chief financial officer from 2014 to 2017, and prior to that, served as general manager of IBM Global Financing, where he managed a total asset base in excess of $37 billion, according to IBM.
As IBM's senior vice president, global markets, he also oversaw IBM's marketing and communications functions and was responsible for building the company's brand and reputation globally.
Schroeter to Lead IBM Spin-Off: Executive Perspectives
In a prepared statement, Arvind Krishna, chairman and CEO of IBM, said:
"Martin is a world-class leader and is uniquely qualified to drive the long-term success of the new, independent company. He has a deep understanding of the industry and has earned the trust of our clients and of the investor community. Martin has the strategic vision and business judgement to realize NewCo's enormous potential as the global leader in managed infrastructure services. He is an inspiring, results-driven executive and the right CEO to lead NewCo through the spin-off process and beyond."
Added Schroeter:
"NewCo is a trusted partner to the world's most global enterprises with a team that has the best skills and experience in the industry. I look forward to developing a diverse ecosystem of partnerships and alliances, to continuing a deep relationship with IBM, and to the creation of market leading capabilities."
Amid the NewCo spin-off plan, IBM itself will double down on its hybrid cloud strategy -- which leans heavily on Red Hat OpenShift.
