IBM Set To Spin-off Managed Service Business To...
However, Kyndryl is beginning to develop new services, and is forming partnerships in a bid to grow its revenue. It estimates that the $415 billion market opportunity it addresses is growing at 7% a year, with some areas it is targeting (including security, intelligent automation and public cloud managed services) growing even faster.
IBM set to spin-off managed service business to...
The broader leadership team for IBM's managed services spin-off company is starting to take shape, with two key executive appointments announced on Wednesday. The spin-off, which has yet to be named and is referred to by IBM as NewCo, is set to formally become an independent company by the end of 2021.
In October, IBM revealed its plans to spin off its managed infrastructure services unit into a new public company in order to focus more squarely on its hybrid cloud business, which includes Red Hat. When the managed infrastructure company is spun off, IBM will transition from being a company with half its revenue in services to one with more than 50% of sales from recurring revenue.
The new company, which will be tax free to shareholders, will focus on managing data centers and cloud infrastructure for clients. The spin-off will have more than 4,600 highly regulated customers in 115 countries, and roughly 90,000 employees. IBM said the managed infrastructure unit will have more than 75% of the Fortune 100 as customers and a backlog of $60 billion.
IBM announced it would execute a tax-free spin-off of the Managed Infrastructure Services business of its Global Technology Services segment called "NewCo". NewCo will focus on IT infra modernization, service delivery excellence, operation efficiency, and cash flow generation. Factually, this makes NewCo the #1 market share managed infra company at $19B annual revenue with a $60B backlog that employs 90,000 working on 46,000 customers in 115 countries.
SaaS (sometimes called cloud application services) is cloud-hosted, ready-to-use application software. Users pay a monthly or annual fee to use a complete application from within a web browser, desktop client or mobile app. The application and all of the infrastructure required to deliver it - servers, storage, networking, middleware, application software, data storage - are hosted and managed by the SaaS vendor.
About KyndrylKyndryl designs, runs and manages the most modern, efficient and reliable technology infrastructure for the world's most important businesses and organizations, with the industry's most experienced services experts. For more information, visit www.kyndryl.com
About IBMIBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM's legendary commitment to trust, transparency, responsibility, inclusivity and service.
Global PracticesKyndryl also announced that it will create six global managed services practices and an advisory and implementation services practice in support of our customers, which will pull together managed services, advisory services and implementation.
Kyndryl also announced the Kyndryl Advisory and Implementation services practice, which will include a group of senior business and technology executives who can advise Kyndryl customers on best-in-class digital environments and the adoption and integration of advanced technologies.
Kyndryl designs, runs and manages the most modern, efficient and reliable technology infrastructure for the world's most important businesses and organizations, with the industry's most experienced services experts. Its previously announced separation is expected to occur by the end of 2021. For more information, visit www.kyndryl.com
The IT services arm of IBM is gearing up to officially spin off from the rest of the company later this year under the name Kyndryl. The assumption is the parent IBM company will attain higher valuations if it is perceived more as a software company capable of double-digit growth rates than what might be achieved by an IT services business currently growing at a single-digit growth rate.
However, as the relationship between internal IT teams and IT services providers continues to evolve in the wake of the COVID-19 pandemic, the rate at which IT services are being consumed is increasing. Many organizations increased reliance on IT services providers during the pandemic as they shifted workloads to the cloud to advance digital business transformation initiatives.
In fact, a recent report published by the market research firm Information Services Group (ISG) notes that revenue generated from enterprise-class technology, business, and IT services reached an all-time high in the first quarter of 2021.
The report also reflects the growing relationship between IT services providers and internal IT teams as more organizations rely on as-a-service platforms. For example, the cloud-based, as-a-service market rose 15% to a record $9.9 billion in the first quarter. In many of those cases, the as-a-service platform is managed by the cloud service provider rather than by an internal IT team or an external IT services firm.
Kyndryl partnered with Microsoft to provide digital transformation services using Microsoft Cloud products. Under the agreement, Microsoft became Kyndryl's Premier Global Alliance Partner, working together to accelerate hybrid cloud adoption, modernize business applications and processes, support workloads, and enable modern work experiences.
The International Business Machines Corporation (IBM), nicknamed Big Blue, is an American multinational technology corporation headquartered in Armonk, New York and present in over 175 countries. It specializes in computer hardware, middleware, and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is the largest industrial research organization in the world, with 19 research facilities across a dozen countries, and has held the record for most annual U.S. patents generated by a business for 29 consecutive years from 1993 to 2021.
They manufactured machinery for sale and lease, ranging from commercial scales and industrial time recorders, meat and cheese slicers, to tabulators and punched cards. Thomas J. Watson, Sr., fired from the National Cash Register Company by John Henry Patterson, called on Flint and, in 1914, was offered a position at CTR. Watson joined CTR as general manager then, 11 months later, was made President when court cases relating to his time at NCR were resolved. Having learned Patterson's pioneering business practices, Watson proceeded to put the stamp of NCR onto CTR's companies. He implemented sales conventions, "generous sales incentives, a focus on customer service, an insistence on well-groomed, dark-suited salesmen and had an evangelical fervor for instilling company pride and loyalty in every worker". His favorite slogan, "THINK", became a mantra for each company's employees. During Watson's first four years, revenues reached $9 million ($141 million today) and the company's operations expanded to Europe, South America, Asia and Australia. Watson never liked the clumsy hyphenated name "Computing-Tabulating-Recording Company" and on February 14, 1924, chose to replace it with the more expansive title "International Business Machines" which had previously been used as the name of CTR's Canadian Division. By 1933, most of the subsidiaries had been merged into one company, IBM.
In 1969, the United States of America alleged that IBM violated the Sherman Antitrust Act by monopolizing or attempting to monopolize the general-purpose electronic digital computer system market, specifically computers designed primarily for business, and subsequently alleged that IBM violated the antitrust laws in IBM's actions directed against leasing companies and plug-compatible peripheral manufacturers. Shortly after, IBM unbundled its software and services in what many observers believed was a direct result of the lawsuit, creating a competitive market for software. In 1982, the Department of Justice dropped the case as "without merit".
In 2005, the company sold its personal computer business to Chinese technology company Lenovo and, in 2009, it acquired software company SPSS Inc. Later in 2009, IBM's Blue Gene supercomputing program was awarded the National Medal of Technology and Innovation by U.S. President Barack Obama. In 2011, IBM gained worldwide attention for its artificial intelligence program Watson, which was exhibited on Jeopardy! where it won against game-show champions Ken Jennings and Brad Rutter. The company also celebrated its 100th anniversary in the same year on June 16. In 2012, IBM announced it has agreed to buy Kenexa and Texas Memory Systems, and a year later it also acquired SoftLayer Technologies, a web hosting service, in a deal worth around $2 billion. Also that year, the company designed a video surveillance system for Davao City.
IBM Cloud includes infrastructure as a service (IaaS), software as a service (SaaS) and platform as a service (PaaS) offered through public, private and hybrid cloud delivery models. For instance, the IBM Bluemix PaaS enables developers to quickly create complex websites on a pay-as-you-go model. IBM SoftLayer is a dedicated server, managed hosting and cloud computing provider, which in 2011 reported hosting more than 81,000 servers for more than 26,000 customers. IBM also provides Cloud Data Encryption Services (ICDES), using cryptographic splitting to secure customer data. 041b061a72