Kyndryl spreads its wings post-IBM with Microsoft cloud deal

Kyndryl inked a strategic partnership deal with Microsoft, planning to target enterprise customers with new co-developed cloud solutions. The move is one of Kyndryl’s first since it completed its separation from IBM earlier this month to become a standalone managed infrastructure services company.

Under the agreement, the pair will work to bring joint solutions to market focused on cybersecurity, resiliency and data modernization and governance. They will also collaborate on products which leverage artificial intelligence as well as those which can help move mission-critical workloads to the cloud. The offerings will be built on Microsoft's cloud. Kyndryl will provide guidance on implementation and running managed services in complex hybrid IT environments.

The deal also includes the creation of a co-innovation lab and a “Kyndryl University for Microsoft" to provide skills training for Kyndryl’s employees.

Martin Schroeter, Kyndryl chairman and CEO, hailed the partnership as a “landmark relationship” which will allow the fledgling company to “be at the heart of progress for our global customers.” Kyndryl noted in a press release the deal will also allow Microsoft to dig deeper into the $500 billion managed services market it serves.

Spin off

Kyndryl wrapped its spin off from IBM on November 3. It has six business units spanning Cloud; Core Enterprise and zCloud; Applications, Data and AI; Digital Workplace; Cybersecurity and Resiliency; and Network and Edge.

RELATED: IBM splits up company to better focus on cloud and AI

David Wyshner, Kyndryl’s CFO, stated in a recent Q&A the separation from IBM will “more than double our addressable market from $240 billion pre-spin to $510 billion by 2024” in part by providing it with more freedom to expand its ecosystem of partners and services to drive digital transformation.

“We are a true services company, propelled by the needs of our customers, rather than the services arm supporting a company that sells technology products,” he explained.

In a video posted following the separation, Schroeter noted Kyndryl’s customer base includes auto companies which make 45% of the world’s cars, operators which support nearly half of the world’s mobile connections and financial companies which manage over 60% of the assets of top banks.

“We’re excited to share with the world what we can do as a new independent company. And we’re ready, ready to support the hearts and lungs of the world’s vital infrastructure,” he said.