Rometty most recently has been IBM senior vice president and group executive for sales, marketing and strategy.

"Ginni Rometty has successfully led several of IBM's most important businesses over the past decade -- from the formation of IBM Global Business Services to the build-out of our Growth Markets Unit," Palmisano said in a statement. "With every leadership role, she has strengthened our ability to integrate IBM's capabilities for our clients."

Under Palmisano, who became CEO in 2002 and chairman of the board in 2003, IBM sold its PC business to Lenovo, sharpened its focus on services and expanded into emerging markets including China, India, Brazil and Russia.

IBM, with its broad portfolio of corporate-focused products, is a major barometer of enterprise IT.

IBM last week announced for the quarter ending in September, though revenue fell slightly short of analyst expectations. IBM quarterly profit rose year over year by 7 percent to US$3.8 billion, while sales were up 8 percent to $26.16 billion. Bright spots included software revenue, up by 13 percent to $5.8 billion; Power Systems revenue, up by 15 percent; and cloud-oriented technology sales, which doubled from last year.