Lenovo acquired IBM’s PC business 15 years ago and has gradually become a major PC player in the world. Ten years later Lenovo decided to buy IBM’s x86 server business, which has a much higher profit margin than PC. Aside from hardware businesses, there’s a recent discussion that IBM is planning to sell its Watson Health unit, the artificial intelligence IBM bet big on. Why has IBM been selling off its businesses and what has it gained by spinning off these units? In this video, Dr. Michael Cusumano from MIT Sloan School of Management talks about IBM’s business strategies. Dr. Cusumano has served as editor-in-chief and chairman of the MIT Sloan Management Review and writes regularly on Technology Strategy and Management for Communications of the ACM. He has also studied business modes of semiconductor companies for over 30 years.
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