IBM announced the completion of Kyndryl, a new company to manage its managed services in November 2021. Regarded as a billion dollar startup by some, the world’s largest managed services provider already has a global base of clients which includes 75 of the 100 Fortune companies. .
“The separation of Kyndryl is one of many steps we are taking to focus more on hybrid cloud and AI, leverage a portfolio of technology and consulting, and meet our growth goals,” said said Arvind Krishna, president and CEO of IBM. once the separation is complete.
The managed services industry has seen increased demand in recent years, especially when the COVID-19 pandemic struck. With most businesses accelerating their digital transformation, the need for managed IT and other services has also increased dramatically.
In fact, statistics show that the global managed services market is valued at US $ 152 billion in 2020 and is expected to grow to around US $ 274 billion by 2026. While North America is the largest market, the fastest growing market is the Asia-Pacific region. .
For Kyndryl, no market and no opportunity is greater than what is available in the Asia-Pacific region. Despite establishing its managed services portfolio through IBM in the past, the company is now completely independent in the way it manages and manages its business across the globe.
According to Susan Follis, Managing Director of Kyndryl in ASEAN, companies have shifted their schedules and are focusing on their digital agenda in order to meet their business goals. To achieve their digital agenda, companies will want to expand their digital reach, which in this case would be their IT infrastructure and services.
“With Kyndryl, we doubled our potential reach in ASEAN. We are independent and can go where our customers are going and we are doubling down and investing in our personal growth. I think ASEAN is a fantastic opportunity and we are going to make it happen. We will do this by focusing on our people, customers and hires, keeping our ecosystem of partners in mind, ”Follis said.
Despite being part of IBM, Follis stressed that they were two separate companies with different goals and that they would only work together where it made sense to their customers. IBM will be Kyndryl’s biggest customer, and there will also be other customers who may have other ways of doing things.
“We had a year to figure out how the relationship worked. Some other customers may want to go in a different direction not associated with IBM products. This is why we are strengthening our certification on hyperscalers and our investments in partner ecosystems. As this unfolds, we will have global partners, ASEAN specific partners, and local partners in any given country.
And I think this growth scenario is huge for us. We haven’t really expanded this ecosystem of local partners. Each country is different and has its own unique advantages which should be taken into account. By having a local system as well as a deeper growth of ASEAN and a focus on partners, it will make a difference for us, ”explained Follis.
Interestingly, Follis also mentioned that local partners see Kyndryl as a real opportunity. Creating a true ecosystem of partners within the region will be a priority for Kyndryl. This includes certifications within hyperscalers and obtaining larger establishments that partners play on, including having the right partner model for each country.
Managed Services Partnerships
One of Kyndryl’s first partnerships since its inception has been with Microsoft. By combining their advanced capabilities to serve corporate customers, the two companies will bring to market leading Microsoft cloud-based solutions that will accelerate hybrid cloud adoption, modernize applications and processes, support the workloads of critical work and enable more modern work experiences for clients.
Kyndryl also announced an expansion of strategic partnership with VMware. The partnership will focus on modernizing applications and multi-cloud services and is expected to enable customers to enhance their digital innovation and business transformation with enterprise control.
This includes accelerating IT and business reinvention for customers through the combination of VMware solutions and Kyndryl’s design, build and management services. The companies also aim to help customers accelerate their digital transformations by rapidly building and deploying new, more secure applications designed and designed for a distributed world of work.
Another partnership announced by Kyndryl is with Google Cloud. Both companies will harness the power of data and analytics, apply AI and infrastructure modernization to help customers gain new knowledge and drive business results. By running their most critical business systems on the global and sustainable Google Cloud infrastructure, customers will be able to seamlessly deliver applications and data across their entire footprint, from head office to the edge of the network. .
In addition to partnerships, Kyndryl has also achieved SAP Certification for Operational Capabilities in Global Cloud and Infrastructure Operations to further strengthen its capabilities and portfolio to deliver managed services to SAP customers around the world.
The digital agenda for ASEAN businesses
As a Managed Service Provider, Kyndryl will offer several types of services to help businesses achieve their digital agenda and capitalize on their success. In ASEAN, the main area of ASEAN growth for Kyndryl will be managed cloud services.
Follis believes that because of their background in managing cloud services, they will be able to help businesses take better advantage of technology. Businesses are now looking to be multi-cloud, and Kyndryl can help them set up digital dashboards, leverage data for better decisions, and more.
Apart from that, data and AI is another big area. They played around and exploited the data to try to understand it, including extracting it for a long time. This will be another area of huge growth with their framework in ASEAN.
The network and the periphery will also be on the agenda. 5G will provide the opportunity to connect businesses to places they haven’t been able to connect in the past. Kyndryl will work with clients to identify new areas of growth in the periphery to realize their digital agenda.
“We come from a position of strength. We are and continue to be the number one provider of managed services. But that does not mean that we remain seated. We’re very focused on doing more for customers and going to new places we haven’t been before, ”Follis said.
She adds that Kyndryll has a totally different strategy for reaching different customers that they weren’t able to reach. And this is done by taking the skills and knowledge they have for their big clients and packing them for a more personalized environment. This allows Kyndryl not only to double its growth potential, but also to offer offerings to a wider region to differentiate itself.
“We are the greatest startup of all time. We were able to continue this journey and not have an impact on our customers. We can already see the difference. We’re faster, flatter and more focused. We can go where our customers want us to go. We have a lean operating model, and we know exactly what we’re doing right and we know where we need to go, ”Follis concluded.