Mumbai: Kyndryl<\/a>, a managed services provider that was recently spun off from International Business Machines Corp., briefly lost clients to rival IT services firms before its new strategy took effect, analysts said, adding that its business has stabilised after smoothly transitioning clients from IBM<\/a> to itself.

The company should, however, be careful about its sub-$50 million clients, which are on the radar of peers, they said.

“Kyndryl’s clients were briefly quite confused about its future performance and the uncertainty impacted some opportunities. There were instances of some customers not renewing contracts or going over to rivals, who were able to convince clients about their stability,” DD Mishra, senior director analyst at tech consultancy Gartner, said.

The initial hiccups have, however, faded and clients are increasingly confident about its prospects, he added. “The company’s confidence in its roadmap over the past six months is helping it on its way to win back clients. However, execution prowess will still determine its future growth and recovery,” Mishra said.

According to technology research and advisory firm ISG, around 200 IBM managed services awards will come up for renewal in the next 24 months. This represents about $34 billion in total contract value (TCV) across both IBM and Kyndryl.

Kyndryl has an integrated global practice for customers, combining managed services, advisory services, and implementation, where it competes with other global IT services providers like Accenture,
Tata Consultancy Services<\/a> (TCS), Infosys and Wipro.

For a company that started its journey with $19 billion in revenue, about 90,000 employees and over 4,000 customers, the stakes are high and retaining customer trust is critical, analysts said.

A significant percentage of its employees and market share is from India.

The company has forged major technology solutions partnerships with Microsoft, SAP and VMware to offer greater flexibility to clients, something that was lacking under IBM.

Its access to a massive partner ecosystem due to its association with IBM has kept it on a strong footing.

“We see multiple instances where clients are looking to restructure existing contracts with IBM for Kyndryl. One of the biggest pain points of IBM’s clients was the lack of flexibility in managed services which Kyndryl can offer now. The recent Microsoft partnership is a great example,” said Mrinal Rai, principal analyst at ISG.

Kyndryl has also implemented many transitions through
IBM Watson<\/a> for clients over the years and these clients may not want to spend on transitioning to another service partner where Kyndryl already has strong expertise.

“More than 20% of IBM services deals are worth over $200 million in TCV where Kyndryl is well positioned to win back the clients when they come up for renewal. It is the contracts below $50 million TCV that are likely to see action from competition. It is an opportunity for Indian as well as global players, but Kyndryl is well positioned with its software partnerships,” Rai added.

Kyndryl itself is confident that it would be able to retain customers efficiently as it continues to broaden its partner ecosystem.

“Our customer retention rates and satisfaction scores are very high because our customers trust us, and rely on us to handle their most mission-critical IT infrastructure needs. As an independent company, we are using our freedom to broaden our ecosystem of strategic partners …all of which open up new sets of potential customers,” a company spokesperson said in response to ET’s queries about its pricing and contract negotiations with clients.
<\/p><\/body>","next_sibling":[{"msid":87921435,"title":"EU countries agree on common stance on new rules for U.S. tech giants","entity_type":"ARTICLE","link":"\/news\/eu-countries-agree-on-common-stance-on-new-rules-for-u-s-tech-giants\/87921435","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"87920524","title":"Martin Schroeter","entity_type":"IMAGES","seopath":"tech\/information-tech\/rivals-eyeing-ibm-spinoff-kyndryls-sub-50-million-clients-experts-say\/martin-schroeter","category_name":"Rivals eyeing IBM spinoff Kyndryl\u2019s sub-$50 million clients, experts say","synopsis":"Kyndryl\u2019s Chairman and CEO Martin Schroeter.","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-13718\/87920524.cms?width=150&height=112","link":"\/image\/tech\/information-tech\/rivals-eyeing-ibm-spinoff-kyndryls-sub-50-million-clients-experts-say\/martin-schroeter\/87920524"}],"msid":87921469,"entity_type":"ARTICLE","title":"Rivals eyeing IBM spinoff Kyndryl\u2019s sub-$50 million clients, experts say","synopsis":"Kyndryl briefly lost clients to rival IT services firms before its new strategy took effect, analysts said, adding that its business has stabilised after smoothly transitioning clients from IBM to itself.","titleseo":"telecomnews\/rivals-eyeing-ibm-spinoff-kyndryls-sub-50-million-clients-experts-say","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":103,"shares":0,"engagementtimems":515000},"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2021-11-26 07:53:41","lastupd":"2021-11-26 07:54:14","breadcrumbTags":["kyndryl ibm","kyndryl","ibm","kyndryl india","kyndryl clients","kyndryl deals","it sector","Enterprise Services","ibm watson","tata consultancy services"],"secinfo":{"seolocation":"telecomnews\/rivals-eyeing-ibm-spinoff-kyndryls-sub-50-million-clients-experts-say"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2021-11-26" data-index="article_1">

竞争对手关注IBM剥离Kyndryl的低于5000万美元的客户,专家说

Kyndryl短暂失去客户的竞争对手IT服务公司新战略生效前,分析师称,其业务已经企稳后顺利过渡客户从IBM本身。

  • 更新于2021年11月26日07:54点坚持
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孟买:Kyndryl托管服务提供商,最近从国际商业机器公司(ibm)剥离出来,出现了短暂的客户竞争对手IT服务公司新战略生效前,分析师称,其业务已经企稳后顺利过渡的客户IBM本身。

然而,公司应该小心的低于5000万美元的客户,在雷达的同行,他们说。

“Kyndryl客户简要对其未来表现很困惑和不确定性影响的一些机会。有一些客户的实例不会续签合同或竞争对手,他们能够说服客户对他们的稳定,“高级主管DD Mishra科技咨询公司Gartner的分析师说。

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最初的打嗝,然而,褪色和客户对其前景越来越有信心,他补充说。“公司的信心路线图在过去6个月中帮助它在赢回客户。然而,执行能力仍将决定其未来的增长和复苏,”Mishra说。

根据技术研究和咨询公司研究小组,大约200名IBM托管服务奖项将在未来24个月到期。这代表了约340亿美元的合同总价值在IBM和Kyndryl (TCV)。

Kyndryl一体化的全球客户实践,结合管理服务,咨询服务,与实现,在竞争与其他像埃森哲全球it服务提供商,塔塔咨询服务公司(TCS), Infosys和Wipro。

公司开始了旅程,190亿美元的收入,约90000名员工,4000客户,风险高和留住消费者的信任是至关重要的,分析师表示。

很大一部分的员工和市场份额是来自印度。

公司已经建立了主要的技术解决方案与微软合作,SAP和VMware向客户提供更大的灵活性,缺乏在IBM的东西。

其获得大规模的合作伙伴生态系统由于其协会与IBM一直在一个强大的基础。

“我们看到多个实例,客户正在寻求与IBM Kyndryl重组现有的合同。最大的一个IBM客户的痛点是缺乏灵活性Kyndryl现在可以提供管理服务。最近微软合作是一个很好的例子,“Mrinal拉伊说,研究小组的首席分析师。

广告
通过Kyndryl也实现了许多变迁IBM华生多年来为客户,这些客户可能不想花在Kyndryl过渡到另一个服务合作伙伴已经有很强的专业知识。

“超过20%的IBM服务交易价值超过2亿美元在TCV Kyndryl将赢回客户时进行更新。这是合同5000万美元以下TCV可能从竞争看行动。一个印度的机会以及全球玩家,但Kyndryl定位的软件合作伙伴,”拉伊补充道。

Kyndryl本身就是相信它能够留住客户有效地继续扩大合作伙伴生态系统。

“我们的客户保持率和满意度非常高,因为我们的客户信任我们,并依靠我们处理他们最关键的IT基础设施的需求。作为一个独立的公司,我们用我们的自由扩大我们的生态系统战略伙伴…所有这些开辟新的潜在客户,”公司的一位发言人说,为了应对等对其定价和合同谈判与客户查询。

  • 发布于2021年11月26日07:53点坚持
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Mumbai: Kyndryl<\/a>, a managed services provider that was recently spun off from International Business Machines Corp., briefly lost clients to rival IT services firms before its new strategy took effect, analysts said, adding that its business has stabilised after smoothly transitioning clients from IBM<\/a> to itself.

The company should, however, be careful about its sub-$50 million clients, which are on the radar of peers, they said.

“Kyndryl’s clients were briefly quite confused about its future performance and the uncertainty impacted some opportunities. There were instances of some customers not renewing contracts or going over to rivals, who were able to convince clients about their stability,” DD Mishra, senior director analyst at tech consultancy Gartner, said.

The initial hiccups have, however, faded and clients are increasingly confident about its prospects, he added. “The company’s confidence in its roadmap over the past six months is helping it on its way to win back clients. However, execution prowess will still determine its future growth and recovery,” Mishra said.

According to technology research and advisory firm ISG, around 200 IBM managed services awards will come up for renewal in the next 24 months. This represents about $34 billion in total contract value (TCV) across both IBM and Kyndryl.

Kyndryl has an integrated global practice for customers, combining managed services, advisory services, and implementation, where it competes with other global IT services providers like Accenture,
Tata Consultancy Services<\/a> (TCS), Infosys and Wipro.

For a company that started its journey with $19 billion in revenue, about 90,000 employees and over 4,000 customers, the stakes are high and retaining customer trust is critical, analysts said.

A significant percentage of its employees and market share is from India.

The company has forged major technology solutions partnerships with Microsoft, SAP and VMware to offer greater flexibility to clients, something that was lacking under IBM.

Its access to a massive partner ecosystem due to its association with IBM has kept it on a strong footing.

“We see multiple instances where clients are looking to restructure existing contracts with IBM for Kyndryl. One of the biggest pain points of IBM’s clients was the lack of flexibility in managed services which Kyndryl can offer now. The recent Microsoft partnership is a great example,” said Mrinal Rai, principal analyst at ISG.

Kyndryl has also implemented many transitions through
IBM Watson<\/a> for clients over the years and these clients may not want to spend on transitioning to another service partner where Kyndryl already has strong expertise.

“More than 20% of IBM services deals are worth over $200 million in TCV where Kyndryl is well positioned to win back the clients when they come up for renewal. It is the contracts below $50 million TCV that are likely to see action from competition. It is an opportunity for Indian as well as global players, but Kyndryl is well positioned with its software partnerships,” Rai added.

Kyndryl itself is confident that it would be able to retain customers efficiently as it continues to broaden its partner ecosystem.

“Our customer retention rates and satisfaction scores are very high because our customers trust us, and rely on us to handle their most mission-critical IT infrastructure needs. As an independent company, we are using our freedom to broaden our ecosystem of strategic partners …all of which open up new sets of potential customers,” a company spokesperson said in response to ET’s queries about its pricing and contract negotiations with clients.
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