With the spin-off of IBM’s managed infrastructure unit just two weeks away, the CEO of the soon-to-be independent business–known as Kyndryl–is touting the company’s differentiators in the IT channel around innovation and services. During a virtual investor event on Tuesday, Kyndryl CEO Martin Schroeter pointed to the company’s significant employee count, intellectual property portfolio, existing customer base and freedom to grow through non-IBM partnerships as major advantages going forward. Key opportunities for Kyndryl will include in cloud, such as with Microsoft Azure, where the company plans to invest for growth, Schroeter said.
“On launch day, we are the world’s largest IT infrastructure services provider,” he said during the virtual event. “We have unmatched intellectual capital and IP, more than 3,000 patents issued, 800 patents pending and 200 more are already submitted. We have world class expertise, with 90,000 employees who have an average of 10 years of industry experience. And we have global scale with state-of-the-art delivery operations around the world, a presence in 63 countries and 459 data centers under our management.”
Still, Kyndryl has its work cut out for it after becoming an independent public company, which is planned to take place after the market closes on Nov. 3. Kyndryl executives don’t expect to see “positive revenue growth” until 2025, Schroeter said–due in part to how much the company plans to spend around boosting employee skills, experimenting with its business model, adding more partnerships and expanding its cloud and advisory services.
In a recent U.S. Securities and Exchange Commission filing, the IBM business now known as Kyndryl disclosed three consecutive years of revenue declines, along with a net loss of $2.01 billion last year and $943 million in 2019. “We have a revenue growth problem, and we have a profitability problem,” Schroeter said on Tuesday. “We think we can work on both of those simultaneously.”
What follows are Schroeter’s comments on how Kyndryl is aiming to drive innovation and services following its spin-off from IBM. 1 23… 11NextRELATED TOPICS: