Head of IBM SoftLayer Steps Down: Here's What You Need to Know

Head of IBM SoftLayer Steps Down: Here’s What You Need to Know

Written by Dan Kobialka 1
January 28, 2015

IBM today confirmed that Lance Crosby, CEO and founder of SoftLayer, has left the company. The news comes after Robert LeBlanc was named the leader of Big Blue's dedicated cloud unit earlier this month.

IBM (IBM) today confirmed that Lance Crosby, CEO and founder of SoftLayer, has resigned. The news comes after Robert LeBlanc was named the leader of Big Blue’s dedicated cloud unit earlier this month.

Crosby ran SoftLayer for eight years as a privately held business and remained with the Dallas-based cloud computing provider after IBM acquired it for around $2 billion in July 2013.

An IBM representative spoke to eWeek about Crosby’s departure: “We wish Lance Crosby the best as he takes a well-deserved break before pursuing new endeavors. Lance has left his mark on IBM. SoftLayer has become an important part of IBM’s cloud portfolio, and has played a big role in our success. IBM reported $7 billion in cloud revenues for 2014, and we will continue to build on that momentum with our clients.”

Crosby also spoke about his departure from Big Blue: “I am very proud of the business we built and the team who continue to evolve SoftLayer at IBM. Now that the business is successfully integrated into IBM, I am ready to take some time off before I pursue my next challenge. I believe IBM and SoftLayer will continue to be successful in the cloud marketplace, and I am glad to have worked with IBM’s great people and great technologies.”

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So what does Crosby’s departure mean for IBM and its customers? Big Blue will likely continue to focus on the cloud, including its as-a-service offerings, as it looks to extend its market reach.

IBM recorded cloud delivered as-a-service revenues of $3 billion in 2014, which represented a 75 percent year-over-year increase.

Big Blue posted a 2014 year-end annual run rate of $3.5 billion for cloud delivered as-a-service too.

Despite these cloud revenue increases, however, news reports surfaced last week indicating that IBM was set to lay off about 26 percent of its global workforce.

Additionally, sister site The VAR Guy earlier today reported that some of these layoffs may have already begun in Australia.

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