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Kyndryl: The New Managed Infrastructure Services IBM Is Rolling Out

Have you heard the exciting news? A $19 billion company in managed infrastructure services (IBM) called Kyndryl will hit the ground running as it breaks off from IBM in the 4th quarter of 2024.

Kyndrl is essentially an already well-established business in the market as it will be a spin-off from big blue taking with them an already extensive client list. In today’s post, we take a look at this bold move and what we can expect from this new channel giant. Keep reading to learn what we know so far.

Why Kyndryl?

IBM’s decision to break off from their IT business enterprise services wasn’t made lightly. We had heard rumors back 6 months ago that IBM was planning the move as a brand strategy. The innovative global tech giant wants to concentrate more resources on developing technologies such as AI, quantum computing, and edge computing in the cloud.

As for the name Kydryl, IBM says that it is meant to be a combination of the words “kinship” and “tendril”. They hope the market will come to associate the brand with growth and collaboration. Sorry World of Warcraft fans. We are pretty sure they didn’t have the online fantasy role-playing character Kyndryl in mind when they chose the name of the new company.

How Big a Hit Will IBM Take?

There are not many technology companies in the world, other than IBM, that could get away with shaving off $7 billion of annual revenue from their Global Technology Services sector. IBM will still maintain under its umbrella Global Technology Services, its consulting unit that brings in $16 billion a year.

Not to mention IBM will still be the largest supplier of Cloud and Cognitive software which brought in $23 billion in 2024. Shareholders are confident that IBM will still grow revenue in 2024 despite the split-off.

How Big Will Kyndryl Be?

In short, very big indeed. Kyndryl will have contracts with 75 of the Fortune 100 and approximately 4,600 other enterprise-scale customers. Nearly a quarter of IBM’s 350,000 staff will be jumping on board the sailing ship.

Even so, at the time of writing Kyndryl is actively recruiting talented executives and technical specialists with openings in the US, Hungary, Poland, Czech Republic, and Costa Rica.

Like a startup dream, Kyndryl will have current activities of $19 billion and annual contracts worth another $62 billion. According to CRN, Kyndryl will rank as the 5th largest managed infrastructure services provider in the world. Only slightly behind Accenture, the remaining IBM service provider, Tata Consulting Services, and DXC Technology.

Managed Infrastructure Services (IBM)

When it comes to managed infrastructure services, IBM has always been one of the biggest names in the game. That isn’t about to change but Kyndryl is shaping up to become a services channel that will immediately bid for the world’s enterprise IT consulting market.

All others beware, with the full weight and backing of IBM’s considerable pull in the market, Kyndryl will be hungry and looking to expand quickly in 2024. For more informative articles keep reading our blog.

Zaraki Kenpachi