IBM will sell the semiconductor technologies unit that makes its Power processors to GlobalFoundries, paying the chip manufacturer about $1.3 billion to take two factories off its hands in a move to save money.
Like many old-school tech companies IBM has struggled to find its feet in a world where mobile devices and cloud services are becoming increasingly important. The company is under pressure to cut costs as well as find ways to halt falling revenues.
The deal with GlobalFoundries and the sale of its server business to Lenovo falls into the first category. In a bid a to get a better foothold in the growing mobile enterprise sector, the company announced a partnership with Apple in July. As part of the deal IBM will develop iOS apps that integrate with its big data and analytics services and promote iPhones and iPads.To read this article in full or to leave a comment, please click here