IBM named Martin Schroeter as the CEO of its managed infrastructure business unit, which is going by the name of "NewCo" for now.
In October, IBM announced it would split off its IT infrastructure services unit, which is comprised of its managed infrastructure services other than hybrid cloud, into NewCo. IBM expects the separation to be completed by the end of this year,
Effective Jan. 15, Schroeter will lead the public NewCo company. IBM previously announced NewCo would manage and modernize client-owned infrastructures, which Big Blue said was a $500 billion market opportunity. At the time of the announced separation, IBM said NewCo would have 90,000 employees, out of IBM's headcount of 325,000 employees.
Schroeter served as IBM's chief financial officer from 2014 to 2017 and as senior vice president of global markets from 2017 to April, 2020 before leaving the company in June of last year.
Prior to being named CFO, Schroeter served as general manager of IBM Global Financing, where he managed a total asset base in excess of $37 billion. Earlier in his IBM tenure, Schroeter work in numerous roles in Japan, the United States and Australia. He joined IBM in 1992.
"Martin is a world-class leader and is uniquely qualified to drive the long-term success of the new, independent company," said IBM Chairman and CO Arvind Krishna, in a statement. "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 judgment 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."
Krishna replaced former CEO Ginni Rometty, who is now IBM's executive chairman, in April. Krishna, who led IBM's cloud computing business prior to his promotion, led IBM's charge to buy Red Hat for $34 billion two years ago.
Back when the separation was announced, IBM said hybrid cloud and AI was a $1 trillion market opportunity.