Introduction
Kyndryl is the new name for IBM’s managed infrastructure services business (what they refer to as IBM Global Technology Services), which spun out of IBM in November of 2021. Over the last 10+ years, IBM has fallen from a technology titan to a member of the walking dead, so how must Kyndryl feel about itself knowing that it is the discarded most unwanted stepchild of this unholy monster?
Unlike Microsoft, IBM has proven unable to reinvent itself as a cloud company. IBM was very well positioned to become a big benefactor of the cloud revolution, and the explosion of the data center utility model, but IBM continues to suffer from a Diminishing Role in the Modern Enterprise.
Kyndryl purports to design, build, manage, and modernize mission-critical technology systems that ‘the world depends on every day’. Kyndryl’s aim seems to be to provide higher-value data engineering services, curation, and orchestration, while developing services around data integration to drive machine-learning and ultimately automation.
Now free from many of the constraints of IBM, Kyndryl’s new ambition is to leverage its contractual agreements and use its considerable size and force to capture more market and wallet share, potentially putting its current customers, who are either unaware and/or unprepared, in the crosshairs.
This gives you two choices to make:
A pressure suit may not be enough to contain the blast. Having the right expertise to defuse the bomb is also extremely important, and we can help you with that. If you’re interested to learn more; read on.
Leadership Team
Kyndryl’s Business
Kyndryl’s Employees
To get to its current count of 90,000 workers, Kyndryl took an $800 million charge to make a signification reduction in force (internally referred to as ‘workforce rebalancing’) to “improve the profit and margin profile of the business”.
NET(net)’s Perspective of Kyndryl
There is some good news: Kyndryl is somewhat unique in that it starts out life as arguably the world’s largest IT infrastructure provider, with 90,000 employees (who average 10 years of experience), more than 3,000 patents (and another 1,000 in the pipeline), and a presence in 60+ countries across 450+ data centers.
In addition, as a global company with $19 Billion of annual revenue and 4,000 customers (many of whom are committed to long-term contracts), Kyndryl is already deeply embedded with many large corporations and even entire governments, handling most (or all) of their critical IT infrastructure needs, with customers representing some 75 of the fortune 100, and more than half of the Fortune 500.
Because Kyndryl also carries a larger depreciation expense than its competitors (15% vs 12% for DXC comparatively), the company is *able* to offer its customers some additional benefit in the form of compressed margins, which could work in its favor if the company is smart about how it wants to pursue new opportunities in the field.
Kyndryl Margin as Compared to Market
And there is some bad news: Kyndryl is also a bit unique that it starts out life already struggling with 4 years of customer defections and revenue declines, and $3 Billion worth of accumulated debt over the last 2 years (although they do also have $2 Billion in cash).
Kyndryl Customer Declines:Kyndryl Revenue Declines
Kyndryl’s Competition
Kyndryl faces stiff competition from many organizations, including:
Kyndryl Composition
Kyndryl offers six (6) practice areas of focus:
Kyndryl also offers advanced advisory and professional:
How to Save
There are many things you can do to save big on your Kyndryl agreement. Here are the three most important things you can do:
Summary
Whether you realize it or not, value is traded in every single supplier interaction and exchange. You are either capturing value, or you are surrendering value, and the level and nature of your relationship, the timing of your actions, the frequency of your communications, the length of your e-mails, and the sequencing of your steps has every bit as much to do with your performance as does the content of your messages.
The client organization must speak with a unified voice, which must be sponsored by the appropriate executives, supported by the applicable department leaders, and channeled through the appropriate supplier-facing resources.
To further enhance performance, we always recommend professional commercial representation to heighten the effectiveness of these critical business dealings to ensure clients maximize value as there is no substitute for experience, expertise, and a track record of proven performance.
With clients in virtually every industry and every geography around the world, NET(net) is the world leader in IT cost and value optimization, capturing hundreds of billions of dollars of negotiated Savings.
NET(net) has the information you need, offers the experience you want, and can deliver the performance you deserve to minimize cost and risk, and maximize the realization of value and benefit across your entire IT value chain.
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About NET(net)
Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get and keep more economic and strategic value. With over 2,500 clients around the world in nearly all industries and geographies, and with the experience of over 25,000 field engagements with over 250 technology suppliers in XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, Telecommunications, and other areas of IT spend, resulting in incremental client captured value in excess of $250 billion since 2002. NET(net) has the expertise you need, the experience you want, and the performance you demand. Contact us today at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1-866-2-NET-net to see if we can help you capture more value in your IT investments, agreements, and relationships.
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