This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: IBM Spinoff Kyndryl Starts Quest for Growth
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Tech > IBM Spinoff Kyndryl Starts Quest for Growth
Tech

IBM Spinoff Kyndryl Starts Quest for Growth

Editorial Board Published November 4, 2021
Share
IBM Spinoff Kyndryl Starts Quest for Growth
SHARE

International Business Machines Corp. completed the spinoff of its $19 billion information technology services business on Wednesday, betting that independence will make it easier to reverse a decline in revenue.

Contents
Kyndryl CEO Martin Schroeter.Newsletter Sign-upWSJ | CIO JournalMore From CIO Journal

The new company, Kyndryl Holdings Inc., is scheduled to begin trading on Thursday morning on the New York Stock Exchange under the symbol KD.

Kyndryl will help companies modernize and manage their IT infrastructure, taking its place as one of the largest players in a competitive market.

Kyndryl CEO Martin Schroeter.

Photo: Kyndryl Holdings Inc.

Kyndryl CEO Martin Schroeter said the company expects to show revenue growth in 2025, now that customers are less likely to see it as tied to IBM technology.

“The spin now allows a whole new set of customers who felt as though…we were just there to sell the IBM technologies to now open up a new set of discussions,” Mr. Schroeter said.

Kyndryl revenue declined 4.6% to $19.35 billion for the year ended Dec. 31, 2020, from $20.28 billion in the prior year, according to a document included with the company’s Form 10 filing with the Securities and Exchange Commission. Revenue declined 7% in 2019 from $21.796 billion in 2018, according to the document, which has three years of financial data.

For the six months ended June 30, 2021, the company had revenue of $9.5 billion, down 0.5% from the same six-month period the year before.

Kyndryl reported that it had a net loss of $2.01 billion in 2020. Chief Financial Officer David Wyshner said that the company had income last year of $67 million on a pretax adjusted basis, accounting for legal, audit, advisory and other internal restructuring charges. The company has about $2 billion in cash with net debt of $1.2 billion, he said.

It ended 2020 with about 4,400 customers, down from about 4,600 customers in the prior year.

There is a lot of opportunity for Kyndryl outside of IBM, according to Alastair Edwards, chief analyst at research firm Canalys. The question is how effectively it can go out and capture it, he said.

Some of Kyndryl’s rivals are further ahead in areas such as helping customers manage multiple cloud providers, he said.

Kyndryl remains highly dependent on IBM’s mainframe customer base, according to Mr. Edwards. Its move into higher-value services will require an investment of money and time in training and technical certifications, he said. Kyndryl also needs to establish its own identity in the market, which will take time, according to Mr. Edwards.

Kyndryl is looking to support businesses running operations on cloud platforms such as those from Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google. It faces rivals including Accenture PLC, Atos SE, Capgemini SE, HCL Technologies Ltd. and Tata Consultancy Services Ltd.


Newsletter Sign-up

WSJ | CIO Journal

The Morning Download delivers daily insights and news on business technology from the CIO Journal team.


Kyndryl will increase its investment in training its workforce of about 90,000 people to handle different cloud platforms, according to Mr. Schroeter, an IBM veteran who previously served as IBM senior vice president for global markets. He also served as IBM’s chief financial officer.

Mr. Schroeter joined IBM in 1992. He retired in 2020, but returned in January to lead Kyndryl.

Kyndryl has been mainly focused on managing IBM customers’ data center equipment, a business that has been contracting as corporations move to the cloud, according to Mr. Schroeter. “The on-prem world is shrinking dramatically. And that’s where…Kyndryl is overweighted,” Mr. Schroeter said.

Mr. Schroeter said Kyndryl will now focus more attention on the global managed cloud services market, which is growing.

The company also plans to broaden its offering in software-applications management, according to Mr. Schroeter. “We show up now with a different mission,” he said.

“If Martin and Kyndryl create a culture of employees and customers first and don’t fall into the trap of short-term P&< gains, they should be able to grow,” said Michael Synn, senior vice president of infrastructure technology at fintech company Broadridge Financial Solutions, a customer of Kyndryl’s predecessor organization at IBM for more than 10 years.

More From CIO Journal

Write to John McCormick at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:Tech NewsWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Stock Futures Inch Up Ahead of Square, Uber Earnings Stock Futures Inch Up Ahead of Square, Uber Earnings
Next Article Moderna, Zillow, Qualcomm, Roku, Qorvo: What to Watch When the Stock Market Opens Today Moderna, Zillow, Qualcomm, Roku, Qorvo: What to Watch When the Stock Market Opens Today

Editor's Pick

Mandy Moore ‘Unrecognizable’ to Followers After Debuting New Face

Mandy Moore ‘Unrecognizable’ to Followers After Debuting New Face

Studying Time: 4 minutes Mandy Moore has followers scratching their heads. This isn’t about her GoFundMe controversy earlier this 12…

By Editorial Board 6 Min Read
Katy Perry & Justin Trudeau Pack on PDA within the Pacific
Katy Perry & Justin Trudeau Pack on PDA within the Pacific

Studying Time: 3 minutes Katy Perry and Justin Trudeau appear to be…

6 Min Read
Inside the ,890 Carolina Herrera Gown Scandal: Hollywood Hills Wife Exposes
Inside the $4,890 Carolina Herrera Gown Scandal: Hollywood Hills Wife Exposes

From a distance, the $4,890 Carolina Herrera gown glimmers like old money…

5 Min Read

Oponion

Americans will be cleaning up from the coronavirus for years, experts warn

Americans will be cleaning up from the coronavirus for years, experts warn

This is the fifth in a six-part series on “two…

February 11, 2022

Sharks’ Celebrini leaves recreation vs. Utah Hockey Membership with damage

SAN JOSE – San Jose Sharks…

October 2, 2024

Chris Licht, new CNN boss, to ‘double-down on what’s working well and quickly eliminate what’s not’

NEW YORK — CNN’s future leader,…

February 28, 2022

Google seeks licensing talks with information teams, following AI rivals

By Julia Love and Hannah Miller,…

July 22, 2025

Tesla’s Touch-Screen Gaming Probed by U.S. Auto-Safety Regulator

Vince Patton, a new Tesla owner,…

December 22, 2021

You Might Also Like

These Excessive-Finish Earbuds Are Cheaper Than Ever Proper Now
Tech

These Excessive-Finish Earbuds Are Cheaper Than Ever Proper Now

On the lookout for a pair of really wi-fi earbuds that pack somewhat extra oomph than your common AirPods? The…

3 Min Read
Apple Simply Upgraded the iPad Professional, MacBook Professional, and Imaginative and prescient Professional with Its New M5 Chip
Tech

Apple Simply Upgraded the iPad Professional, MacBook Professional, and Imaginative and prescient Professional with Its New M5 Chip

As earlier than, the 11-inch iPad Professional prices $999 and the 13-inch iPad Professional begins at $1,299. They're suitable with…

3 Min Read
The SteelSeries Arctis Nova 3 Headset Is Good for Console Avid gamers
Tech

The SteelSeries Arctis Nova 3 Headset Is Good for Console Avid gamers

There is a draw back, although, and it is not minor: As soon as Sonar is working, you’ll have to…

3 Min Read
Right here Are the Finest Pet Cameras for Helicopter Pet Dad and mom
Tech

Right here Are the Finest Pet Cameras for Helicopter Pet Dad and mom

Examine Our PicksOthers Examined{Photograph}: Molly HigginsEnabot Rola PetPal Robotic Pet Companion for $199 (with no attachments): This rolling pet digital…

7 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?