It has been nearly two years since IBM spun off its IT infrastructure management services (IMS) business into a separate entity known as Kyndryl, under the leadership of Chairman & CEO Martin Schroeter. In a recent interview, Schroeter shared insights into how innovation has played a pivotal role in transforming Kyndryl’s fortunes and making it a resounding success in the IMS industry.
Kyndryl, since its inception, has not only met but exceeded various targets, including revenue and profitability, that were set when it was carved out from IBM. Schroeter attributes this achievement to a combination of factors, including automation, innovation, forging new partnerships, and expanding its service offerings.
The IMS business, which ensures 24/7 support for enterprise systems, faced challenges due to the surge in cloud computing and fierce competition, particularly from Indian IT services companies. Global players in this sector, such as US-based DXC and France’s Atos, have encountered difficulties and even attempted to sell their businesses.
However, Kyndryl’s approach has been different. The company’s development of an open-integration technology services platform called “Kyndryl Bridge” has been a game-changer. This platform integrates artificial intelligence (AI), operational data, and Kyndryl’s expertise to provide customers with visibility across their technology landscapes, including multi-cloud and hybrid environments. It offers valuable insights that help enterprises understand, predict, and take action for better business outcomes, while also using automation to ensure stable and reliable technology operations.
Schroeter explained, “The real value of Bridge is that it’s helping enterprises get insights into how their systems are running. As the largest infrastructure provider, we also have the most data, so we know more about how an application would perform under particular conditions than anybody else.”
One of the forthcoming features of Bridge is centered around self-healing infrastructure, which employs AI/ML and automation to identify and rectify errors and misconfigurations without human intervention. Schroeter believes that Kyndryl is bringing innovation to a space that has been traditionally guarded by incumbents.
In the fiscal year ending in March, Kyndryl achieved $1.2 billion in signings with cloud hyperscalers, surpassing its billion-dollar target. This success was largely facilitated by Kyndryl’s India team, which played a significant role in upskilling employees to assist customers with their cloud journeys.
India also holds a crucial position in Kyndryl’s rapidly growing advisory services business. Under IBM, this division was constrained by IBM’s offerings. Today, Kyndryl advisors can offer a wider range of options to customers. The company’s clients are reinvesting the savings generated through Kyndryl’s productivity improvements into Kyndryl’s advisory services, aiding them in transitioning to the cloud and addressing various aspects, including data architecture, security, network, and edge computing.
Furthermore, in India, Kyndryl is not only hiring for its consulting business but also upskilling employees who have been freed up by automation, enabling them to transition into consulting roles. This approach aligns with Kyndryl’s commitment to continuous innovation and adapting to the changing dynamics of the IT services industry.
Kyndryl’s journey under Martin Schroeter’s leadership demonstrates how a focus on innovation and a proactive approach to market challenges can lead to remarkable transformations and propel a company to new heights of success in a competitive landscape.
