TECH SUPPLIER Nov 2020 - Market Note - Doc # CA46949920

Breaking Up Is Hard to Do: Future of NewCo and IBM in Canada's Managed Services Market

By: Jason BremnerResearch Vice President, Industry and Business Solutions, Nigel WallisResearch Vice President, IoT and Industries

Abstract

This IDC Market Note summarizes IDC Canada's observations regarding IBM's announcement on October 8, 2020, that it will spin off its managed infrastructure services business into a separate company, temporarily called NewCo.

"NewCo has an enviable position in the Canadian infrastructure managed services market with a leading market share and high levels of awareness, consideration, and preference. At the same time, there are some strategic and tactical moves that NewCo should look at to set for short-term and long-term success in Canada after the spin-off in late 2021," according to Jason Bremner, research vice president, Industry and Business Solutions, IDC Canada.


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