IBM's cloud boss takes on CEO mantle as Rometty steps down
Red Hat CEO James Whitehurst has also been appointed company's president
IBM boss Ginni Rometty is to step down later this year and be replaced by cloud boss Arvind Krishna.
Krishna is currently the SVP of cloud and cognitive services at the company and was a "principal architect" of the company's mammoth Red Hat acquisition last year. He has been with the company for nearly thirty years.
He will take over on 6 April, while Rometty will continue as executive chairman until her retirement from the company at the end of the year.
"Arvind is the right CEO for the next era at IBM," said Rometty.
"He is a brilliant technologist who has played a significant role in developing our key technologies such as artificial intelligence, cloud, quantum computing and blockchain.
"He is also a superb operational leader, able to win today while building the business of tomorrow. Arvind has grown IBM's cloud and cognitive software business and led the largest acquisition in the company's history.
"Through his multiple experiences running businesses in IBM, Arvind has built an outstanding track record of bold transformations and proven business results, and is an authentic, values-driven leader. He is well-positioned to lead IBM and its clients into the cloud and cognitive era."
Meanwhile, Red Hat CEO James Whitehurst has been appointed as president of the organisation, effective from the same date.
"Jim is also a seasoned leader who has positioned Red Hat as the world's leading provider of open source enterprise IT software solutions and services, and has been quickly expanding the reach and benefit of that technology to an even wider audience as part of IBM," she continued.
"In Arvind and Jim, the board has elected a proven technical and business-savvy leadership team."
Rometty has been with IBM for almost four decades and has been CEO since 2012. Her tenure at the top spot has seen the organisation acquire 65 companies, build out its capabilities in hybrid cloud, security, data and AI as well as overseeing the behemoth acquisition and integration of Red Hat.
Michael Eskew, lead director of IBM's board, praised Rometty's leadership and decision-making as CEO.
"Ginni has provided outstanding leadership for IBM, substantially transforming the company and ushering in a new cloud and cognitive era," he said.
"She has taken bold strategic actions to reposition IBM for the future, shedding businesses and growing new units organically and through acquisition, all while achieving record diversity and employee engagement and setting the industry standard for responsible technology ethics and data stewardship.
"With the strong foundation now established by Ginni for IBM's future, the board is confident that Arvind is the right CEO to lead IBM.
"The board ran a world-class succession process and found in Arvind a leader with the business acumen, operational skills and technology vision needed to guide IBM in this fast-moving industry."
Krishna added: "I am thrilled and humbled to be elected as the next chief executive officer of IBM, and appreciate the confidence that Ginni and the board have placed in me.
"IBM has such talented people and technology that we can bring together to help our clients solve their toughest problems. I am looking forward to working with IBMers, Red Hatters and clients around the world at this unique time of fast-paced change in the IT industry.
"We have great opportunities ahead to help our clients advance the transformation of their business while also remaining the global leader in the trusted stewardship of technology. Jim will be a great partner in the next step of this journey."
IBM's share price jumped five per cent in after-hours trading after the news was announced. Kate Hanaghan, chief research officer at TechMarketView, said Krishna's appointment could see IBM follow a similar path as Microsoft.
"Shares jumped on the news indicating that perhaps investors are hoping Krishna will do for IBM what Satya Nadella has done for Microsoft," she commented.
"It would be wrong, however, to suggest that Rometty got the direction of travel wrong. For example, the divestments and investment in new products and services on her watch (and of course Red Hat), have all been about trying to change the balance of IBM's revenue streams. But the numbers speak a thousand words, and, in that regard, IBM is still being challenged.
"Given Krishna's current role and expertise in cloud, he's a logical successor. His first priority must be to ensure the integration of Red Hat bears substantial fruits. He must also continue with the general trends around divestment/investment in new products, and more acquisitions. But if he is to really shift the pattern of IBM's top line, we'll need to see more bright new ideas and some brave decision-making."