IBM is set to accelerate its push into the emerging cloud computing business on Tuesday with a new cloud computing division whose head will report directly to Sam Palmisano, the company’s chief executive officer and chairman.

In a demonstration of Big Blue’s growing capabilities in the field, Mr Palmisano is also due to demonstrate a new service that would let customers automatically switch some of their computing tasks over to IBM’s datacentres at times when their own resources are stretched, creating what IBM called an “overflow cloud” for corporate IT.