Kyndryl has spun out from IBM as an independent managed infrastructure services provider (MSP) business, IBM confirmed on November 3. Here's everything you need to know about the Kyndryl MSP business.
Starting on November 4, Kyndryl will trade on the New York Stock Exchange under the symbol KD. In a prepared statement, IBM CEO Arvind Krishna said:
“The separation of Kyndryl is one of many actions we are taking to sharpen our focus on hybrid cloud and AI, leverage a portfolio clearly focused on technology and consulting, and achieve our growth objectives. We look forward to our partnership with Kyndryl as it moves forward as an independent company.”
Updated November 4, 8:00 a.m. ET: Here's a statement from Kyndryl CEO Martin Schroeter:
"We are thrilled that Kyndryl is today an independent company -- with 90,000 of the best and brightest professionals, a strong balance sheet and a path to growth. There is a large and growing need for digital transformation services, and our unrivaled global expertise in creating, managing and modernizing mission-critical information systems positions us well in a market that will expand to more than $500 billion by 2024. We look forward to the path ahead, with a flatter and faster company that is at the heart of progress for our customers and for the world."
Here are additional details about the spin-out.
1. Managed IT Services Portfolio: Kyndryl has six global managed services practices that span:
2. Advisory and Implementation Services Practice: This includes a "group of senior business and technology executives who can advise Kyndryl customers on best-in-class digital environments and the adoption and integration of advanced technologies."
3. Customer Base: Kyndryl has relationships with 4,600 customers and a backlog of more than $60 billion.
4. Headcount: The MSP has roughly 90,000 employees.
5. Executive Leaders: Key executive team members include:
6. Global Leaders: Kyndryl has a global leadership model for key markets representing more than three-fourths of the MSP's revenue. The key leaders, announced July 1, 2021, include:
7. IBM and Kyndryl Competitive Overlap: The two companies will surely cooperate — but they could also wind up competing on some fronts. For instance, IBM since June 2020 has acquired the following companies:
It’s retained those acquisitions amid the Kyndryl spin-out, ChannelE2E believes. But Kyndryl may also need some of its own hybrid cloud consulting expertise in order to manage customers’ modernized hybrid cloud infrastructures, ChannelE2E believes.
Also, both IBM and Kyndryl offer cybersecurity services. IBM has a Top 250 MSSP business unit, as tracked by MSSP Alert. And Kyndryl will need to offer security baked into its MSP services for customer infrastructure, ChannelE2E notes.
8. Kyndryl Stock Market Valuation: To be determined.
9. Kyndryl Stock Ticker: KD, once the spin-off occurs.
10. Kyndryl Quarterly Revenues and Net Loss:
11. Bonus - Kyndryl Annual Revenues and Net Loss:
12. Bonus - Key Kyndryl Competitors: The list of potential Kyndryl competitors and alternatives, according to ChannelE2E, includes Accenture, Atos, Capgemini, Cognizant, Deloitte, DXC Technology, Ernst & Young (EY), Infosys, HCL, KPMG, NTT, PwC, Tata Consultancy Services, and Wipro, among others.
13. Bonus - Board of Directors: Kyndryl announced these board members on September 28, 2021:
Blog originally published July 1, 2021. Updated regularly thereafter with new Kyndryl business information.
