IBM Separates Managed Infrastructure Services to Kyndryl

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IBM Separates Managed Infrastructure Services to Kyndryl

IBM have decided to separate its managed infrastructure services business to Kyndryl. IBM have just announced and given a unit name as Kyndryl. Still many things to go ahead and finalized but naming part is announced on 12th April 2021.

IBM on Monday 12th April 2021 announced that their $19 billion managed infrastructure services business will be called a separate entity named Kyndryl . Kyndryl will be head quartered in New York and have a new logo in red color in lowercase only.

Now just name has been finalized and entire separation is expected to take long. May be 6-12 month long. IBM first shared their plan to carve out their managed infrastructure services in October 2020.Then top executives were announced in Jan & March 2021 even before name of new company announced. 

With coming time many things gets revealed like who will lead Kyndryl and what types of engagement the company will focus. 

Why IBM thought that the move will be beneficial and how the managed infrastructure services staff will be dealt due to this separation and will there be any impact on staff in managed infrastructure services .

Change is the law of nature and all staff in managed infrastructure services have to adopt quickly .IBM situation will be also impacted.

Lets discuss the 5 possibilities which IBM may have to face as challenge.

5 Things to Know After IBM Separation of Managed Infrastructure Services to Kyndryl

1.IBM May Face Challenge To Retain World’s Largest Solution Provider Position

With this split there is huge chance that IBM will loose its World`s Largest Solution Provider and Accenture may give touch challenge and may become Number 1.This separation will include Cloud Services Unit approx. $8 billion and $17 billion GBS. Approximately GBS is covering 40% of IBM Revenue.

Kyndryl split will change IBM focus to software and solutions and will have more focus on Red Hat and IBM will retain their systems businesses, mission-critical public cloud service, and a software portfolio mainly focused on big data, artificial intelligence, and security.

2. Kyndryl Needs Building Financial, IT, HR Infrastructure Before Separation

IBM have to build leadership team at Kyndryl and getting the necessary financial, IT and HR infrastructure in place to spin it out as a standalone company, according to David Sun, director of corporate business development for IBM Services. David will be part of IBM under GBS and continue to focus on mergers and acquisitions.

Since February 2019 IBM Services is headed by Mark Foster and will continue heading GBS. Cloud application innovation within GBS division have been seen by John Granger, COO since January 2019.

3. Kyndryl Will Be Fifth Largest Solution Provider In The World

Position of Kyndryl will be 5th behind Accenture. Kyndryl will have revenue of $19 billion, a $60 billion services backlog, and 4,600 clients in 115 countries, including more than 75 percent of the Fortune 100.

4. Current IBM Execs Tapped For Kyndryl CEO, President, CMO Roles

Kyndryl already has three of its highest-ranking executives in place months before its name declaration. Martin Schroeter was already announced Kyndryl’s CEO in Jan following a 30 months tenure.

Elly Keinan following a 30-year tech career nominated as GM (North America,Latin America) &  Chairman of IBM Japan. Keinan since September served as a partner with Pitango Venture Capital, Israel’s leading venture capital group.

Maria Bartolome Winans will be Kyndryl’s Chief Marketing Officer who was most recently responsible for demand generation across the U.S., Canada, and Latin America as Chief Marketing Officer for IBM Americas.

5. Kyndryl will focus Client Owned Infrastructure

Kyndryl will be focused on updating client-owned infrastructure by providing hybrid and multi-cloud management for the world’s largest enterprises as per IBM CEO Arvind Krishna told investors in October.

Kyndryl will remain major part of IBM but many things will change. Major hurdle will be there at step 2.There were confidential reports are there that many employee placed on bench may end up leaving organization. It may lead to exists.

Lets wait and watch to see how this IBM`s move will perform. Red Hat is expected to get more attention. CentOS Stream seems to be result of more focus on Red Hat. Answer is hidden in time. Stay tuned for further update on this.