Kyndryl Spins Off
A “war chest” of intellectual property and newfound freedom to form partnerships with vendors outside of IBM are part of the competitive advantage that the newly independent Kyndryl hopes to bring to the digital transformation market, Kyndryl Chief Technology Officer Antoine Shagoury told CRN in an interview.
IBM completed the separation of its managed infrastructure services business Wednesday, and the spin-off company, Kyndryl, debuted on the NYSE Thursday under the symbol “KD.”
“When we were working with IBM, [we had a] very targeted solution set, very targeted application set [in order] to proliferate within the portfolio,” said Shagoury, who joined Kyndryl earlier this year. “That’s gone. That’s going away fairly quickly.”
For Shagoury, formerly the chief information officer at State Street Corp. and the London Stock Exchange, Kyndryl stands above the pack in its technical ownership and expertise.
“We have one of the world’s largest operational data lakes,” he said. “We ingest about 4 TB every day. And as we start to do that, we not only offer our continuity of service, we now offer insights into operations.”
Kyndryl also has “a tremendous amount of IP around cloud enablement tools, cloud affordability, optimization, things that we’ve done naturally as a part of IBM, but we built them to be agnostic.”
In September, Kyndryl disclosed an array of details about its business and operations in a regulatory filing, including its declining revenue for the past several years, workforce reductions, the competitive landscape (including with competitors such as DXC Technology) and vendor partnerships beyond IBM (such as with VMware and Microsoft).
In the regulatory filing, Kyndryl said it foresees taking part in a $415 billion market for providing “innovative services to design, run and modernize customer technology environments.”
What follows is an edited portion of CRN’s interview with Shagoury.