IBM's infrastructure services spin-off to be named Kyndryl
The business unit will become a fully-fledged public company by the end of the year
IBM has unveiled the name of its Managed Infrastructure Services business which is to become a fully-fledged public company by the end of this year.
The company previously referred to the spin-off as simply ‘NewCo’, but it has now been announced that the new infrastructure services company is to be named Kyndryl – a combination of the words ‘kinship’ and ‘tendril’.
The news comes six months after IBM declared that it would be splitting its business into two separate entities, bringing an end to a strategy that saw it attempt to shift towards cloud growth while maintaining a foothold in its legacy business.
Martin Schroeter, who was appointed Kyndryl CEO at the beginning of this year, said that the name “evokes the spirit of true partnership and growth”.
“Customers around the world will come to know Kyndryl as a brand that runs the vital systems at the heart of progress, and an independent company with the best global talent in the industry,” he added.
According to Kyndryl chief marketing officer Maria Bartolome Winans, “creating a name is just the start of our journey as a brand”.
“It will help identify us and support recognition, but the meaning of the name will be built and enhanced over time from our behaviours, aspirations and actions, and what we enable our customers to do. Our vision is to be the leading company that designs, runs and modernises the critical technology infrastructure of the world's most important businesses and institutions, ultimately powering human progress,” said Winans.
Kyndryl’s headquarters are to be located in New York City, which Schroeter described as “one of the world's most vibrant and global urban centres”, adding that the decision “underscores [Kyndryl’s] commitment to the economic health of cities”. IBM's headquarters are to remain nearby, in Armonk, NY.
Despite being a newly-formed company, Kyndryl is uniquely positioned as a well-established business thanks to its ties with IBM, which already holds a global base of 4,600 customers.
The tax-free deal of separating Kyndryl from IBM is expected to be finalised by the end of 2021, with the latter set to focus entirely on its AI capabilities and the hybrid cloud.
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