Jul. 30 at 9:42 AM
$KD When IBM spun off Kyndryl in 2021, many saw a legacy IT carve-out. Today, Kyndryl is the largest IT infra services provider globally, running mission-critical ops for ~75% of the Fortune 100.
The real drive though is its shift toward high-margin revenue.
* Kyndryl is ditching low-margin legacy deals to build dominance in advisory services and hybrid cloud integration:
* Hyperscaler Alliances: Post-IBM, Kyndryl partnered with AWS, Azure, & GCP, becoming the top bridge from legacy tech to cloud.
* Kyndryl Consult: Its advisory arm targets AI orchestration, cloud migrations, & cyber resilience—fetching far higher gross margins than basic managed services.
* Kyndryl Bridge: Its AI-powered platform automates routine infra tasks, lowering ops costs & boosting EBITDA margins.
Enterprise AI forces hybrid cloud upgrades, Kyndryl is swapping low-margin contracts for high-margin advisory & security work. This sets up a solid engine for higher margins, stronger FCF, and steady profit growth ahead.