Hewlett-Packard has also put its personal computer division, the largest in the world, up for sale.
To complete the overhaul, the company plans to buy business software maker Autonomy for about $10 million.
The restructuring comes as an effort to focus its business model on selling to corporations and governments.
HP, the largest technology company in the world by revenue, will continue to sell servers and other equipment to business customers, just as IBM now does.
The company employs more than 300,000 people worldwide. It didn't say whether any jobs will be cut.
HP has been outmatched in smartphones and tablets despite its $1.8 billion acquisition last year of Palm Inc., whose webOS software was the crown jewel of the deal. The software powered the fledgling TouchPad tablet and HP-powered smartphones that are being discontinued in Thursday's announcement.
The Associated Press contributed to this report.