IBM's Divestiture and AMD's Rumored Acquisition Focus on Data Centers, Cloud, and Profitability
After more than a decade of massive growth in cloud spending, it's clear that data centers have become a modern computing unit staple, powering all sorts of basic services and future tech developments. With public and private cloud spending expected to grow on average by double-digit percentages every year in the decade ahead -- in which time it could become a $1 trillion-a-year industry -- businesses are scrambling to capitalize on the opportunity.
To that end, International Business Machines (NYSE: IBM) recently announced a divestiture to help it focus on this key market, and reports indicate Advanced Micro Devices (NASDAQ: AMD) is close to announcing a deal to acquire fellow chip designer Xilinx (NASDAQ: XLNX). Both moves will help the companies focus on data centers and cloud computing, and will also greatly improve profitability.
Image source: Getty Images.
Source Fool.com
