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5 Things To Know About Kyndryl, IBM’s New Services Business

From who will lead Kyndryl to what types of engagement the company will focus on to how the solution provider community will be impacted by its split from IBM, here are five things we know about the company so far.

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1. Infrastructure, Application Buying Cycles Have Diverged

Kyndryl will be laser-focused on client-owned infrastructure, providing everything from traditional hosting and networking services to transformation ones like modernization of mission-critical infrastructure and hybrid and multi-cloud management for the world’s largest enterprises, IBM CEO Arvind Krishna (pictured) told investors in October.

While IBM is divesting from infrastructure consulting beyond its own technologies, the company will remain all in on application modernization through its $16.63 billion Global Business Services division. IBM has in recent years seen diverging purchasing cycles for its infrastructure and application services businesses, with the selection criteria and decision-makers most-often not one in the same, he said.

IBM will likely be Kyndryl’s largest customer initially, while Kyndryl will be IBM’s largest customers at the onset of the separation, Krishna said in October. But over time, Krishna said IBM is expected to build outs its ecosystem of business partners, including other leading systems integrators that will compete with Kyndryl.

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