IBM is shedding its chip making business to GlobalFoundries for $1.5 billion, which will allow it focus on other areas.

"IBM has been undergoing the process of reinventing itself as a company that focuses on cloud computing, big data analytics," said Dana Wollman, managing editor at Engadget.

It poses the question of whether IBM is still a computer hardware company. Wollman says it really hasn't been that for years.

"Getting rid of the chip making business might further persuade people that this is a company that is reinventing itself and will be known more in the future for its artificial intelligence, for its algorithms and, yes, for its back-end cloud technology that is going to help a lot of businesses run smoothly," Wollman said.