News of the GlobalFoundries deal arrived on Sunday, via Bloomberg, and IBM CEO Ginni Rommety confirmed the agreement during the company's financial earnings call on Monday morning, when she also deep-sixed the 2015 Roadmap. The company's stock price is down 7 percent on the day.
The sale of the chip business is part of IBM's longer-term shift away from hardware towards higher-margin businesses, and in the age of cloud computing—where businesses can easily rent computing power over the internet without buying their own hardware—many other hardware giants have been following IBM's lead. Earlier this month, HP announced plans to split into two separate companies, one for its desktop PC line and one for its cloud computing and enterprise software business. And last year, Dell went private to focus on transforming itself into a cloud and software company, while storage giant EMC spun off its cloud computing and big data units into a new company called Pivotal.