IBM aims for services growth with leadership change

IBM is changing the management line-up in its Global Technology Services business as it looks for more growth in a key area of its operations

IBM has shuffled its management pack in its global services operation as it looks to being in a Big Blue veteran who has gained a reputation as a turnaround expert.

Martin Jetter, who has been with the vendor for 28 years, will step into the role running IBM's Global Technology Services immediately reporting to the current incumbent Erich Clementi, who is expected to move to a new role when he steps down in January.

In recent times Jetter has been running the Japanese operations for the vendor and is credited for returning the territory to positive growth and his CV also includes spells heading the German business and at the services unit in Europe.

According to reports, IBM's CEO Ginni Rometty was impressed by Jetter's performance in Japan and told staff in a memo that he was able to quickly embrace new approaches and new thinking and get his team behind changes.

Jetter takes the reins at a time when IBM is moving away from certain areas of the market, having disposed of its X86 server business to Lenovo and its semiconductor operation to Globalfoundries.

Services and cloud revenues have been increasing, with the firm revealing in its most recent third quarter numbers that cloud revenues were up by 50% in the year so far and cloud as a service was up by 80% since the start of its fiscal year and was getting a $3.1bn annual run rate.

In terms of the services business that Jetter will take over the revenues have been roughly flat in the first nine months of the firm's fiscal year and he will be expected to improve that situation.

Read more on Infrastructure-as-a-Service (IaaS)