IBM has decided to spin off its IT infrastructure services business in an apparent bid to focus its resources on developing solutions in new technologies, such as artificial intelligence (AI).
The spun-off business will be called Kyndryl and be headquartered in New York City, the US tech giant said in a statement.
Kyndryl will have around 90,000 employees. IBM has asked its long-time executive Martin Schroeter to take charge of the new unit.
IBM officials say Kyndryl will provide traditional hosting and networking services, and digital transformation services, in addition to multi-cloud management.
“Creating a name is just the start of our journey as a brand,” says Kyndryl Chief Marketing Officer Maria Bartolome Winans.
The name Kyndryl is made up of two words that, IBM says, are central to the unit’s identity and mission. “Kyn” is derived from the word kinship, and “Dryl” comes from tendril.
“Our goal to design, execute and modernize the critical technological infrastructure of the world’s leading companies and institutions, ultimately driving human progress,” Winans added.