Kyndryl's Global Strategic Partnership with Microsoft to lead $500 billion MSP market
Kyndryl (NYSE "KD" @kyndryl) and Microsoft started a new global strategic partnership in the managed service sector. Microsoft has access to a $500 billion managed service market, and Kyndryl will now lead that market. Kyndryl is the world's largest IT infrastructure service provider, and their partnership with Microsoft as the "only Premier Global Alliance Partner" will undoubtedly benefit both companies in the coming days.
David Wyshner, CEO of Kyndryl said, "we're taking what we already are – which is a No. 1 player in the IT infrastructure service space." He also said, "becoming an independent company, and that gives us a new freedom to no longer be an IBM captive." CRN took an interview with the CEO of Kyndryl on the matter, and he explained the ongoing issues.
Kyndryl is IBM's managed service provider spin-off, starting as an individual company to partner with more customers to provide better solutions in the market. Most of the time, we see larger companies' acquisitions taking in smaller ones to use them as subsector business profiles. Kyndryl became successful and extensive on its own, and it needs to tackle the market differently.
Individual business venture for Kyndryl started on Thursday as the company currently employees 90,000 people and gathers $19 billion in revenue from the market. The digital transformation market is becoming competitive day by day and handling the increasing customer base. The first big deal for the company is starting with Microsoft Corp. (Nasdaq: MSFT).
Partnership with Microsoft is hoped to bring state-of-the-art solutions to companies looking for hybrid services. Microsoft Cloud is a whole different sector; partnership with Kyndryl will boost reaching more customers with cloud services that everyone appreciates. The primary goal is to modernise the application process, hybrid cloud adaptation, support critical infrastructure, and enable work experience.
The company started its debut on the New York Stock Exchange on Thursday under "KD." The chief financial officer at Kyndryl previously worked as the CFO of Wyndham Worldwide, where he led the company into separate private businesses and two public companies. Hotel chain La Quinta was also directed by him in 2018, where he also helped in acquisitions. Kyndryl's Global Alliances and Partnership leader Stephen Leonard shared insights into the current business. He said, "Kyndryl's service delivery plus our partner's solutions is the magic combination when it comes to managing complexities of various aspects of their digital transformation."
Though Kyndryl and Wyshner executives have a lot on their plate in terms of the bucket list for the company, business operations should still run flawlessly to meet regulatory findings. The company disclosed regulatory filing where several years of revenue decline became visible. If mistakes done at those times are not fixed, the stream is going to fall further below as they are no longer "IBM captive." Regulatory filings include competitive landscape, workforce reductions, etc.
Wyshner has the experience of a lifetime when it comes to IT infrastructure-based business. His role as the CFO of Avis Budget Group led to Avis's acquisition of Zipcar for $500 million. It is a healthy amount for this grade of investment for the 2013-time frame.
The current aspect of managed service providers roles is constantly increasing in demand. Cybersecurity, adoption of newer technology, machine learning, artificial intelligence and even scripting for data collection requires adequate infrastructure. Though the company came out of IBM's shadow, it will still serve as one of the primary customers. IBM specialises in hardware and software, alongside have a significant number of customers. To keep the legacy ongoing, further motives will be on the discussion table to work closely. We are eager to watch companies utilise Kyndryl's IP portfolio to a competitive advantage.