IBM Korea boosts hiring as HQ shifts biz to cloud, AI

By Kim Bo-eun

IBM Korea CEO Song Ki-hong

IBM Korea said Wednesday that it will hire up to 100 new people to work in the new business areas of cloud computing, big data and artificial intelligence (AI) as it seeks to transition into a cloud platform and cognitive solutions company.

The move is seen as part of IBM's global efforts to restructure its business portfolio as sales from its legacy business in IT services have been declining for a decade.

The U.S. tech firm spun off a large part of its IT management services operations to focus on cloud businesses as its next growth engine, seeking to compete with titans such as Amazon and Microsoft.

IBM's cloud business sales rose 19 percent year-on-year in 2020, and there are projections that sales from cloud services could account for almost half of the company's total after a spin-off.

The company acquired open source software provider Red Hat in 2019, one of multiple acquisitions by IBM to strengthen its cloud business.

IBM is seeking to scale up its hybrid cloud business, which is a system that combines a private cloud with one or more public cloud services. A hybrid cloud strategy allows businesses greater flexibility as workload can be moved between cloud systems as needs and costs fluctuate.

IBM is a late entrant into the cloud business, but forecasts show booming demand for its services will enable the company to enjoy robust earnings.

"Following an unprecedented change, the need for tech personnel is growing in all industries," IBM Korea CEO Song Ki-hong was cited as saying in a press release.

"We are hoping that outstanding tech personnel and developers can join IBM, which is leading in core industrial technology, the hybrid cloud and AI."

IBM is targeting leadership in hybrid cloud services and offering new technologies such as in AI and blockchain, the company said.