Ginni Rometty Ends Tenure As IBM’s CEO
Rometty served as CEO of IBM for eight years. During those eight years, she had trouble maintaining growth and profitability for the company, as the sector transitioned to cloud-storage services. She will leave the role on April 6th but will continue serving as chairwoman of the board until the end of the year.
Arvind Krishna will succeed her as CEO and Jim Whitehurst will serve as president of IBM. This is the first time that the executive suite has had these two roles jointly. Whitehurst was formerly the chief executive of Red Hat.
Red Hat was the largest acquisition by IBM in its 108-year history. The acquisition cost $33 billion. This was one primary strategy that Rometty had in order for IBM to gain a foothold in the cloud services business.
“I think she made a lot of changes,” said David Grossman, an analyst at Stifel Financial Corp. “You could argue that she didn’t make enough changes quickly enough, but I think the business has transformed during that period.”
Sales continually lagged while Rometty ran IBM, but the sales of other competitors rose. Share value for Microsoft increased by 500% because of their foothold in the cloud services industry.