Kyndryl lines up tech services deals with Google Cloud, Raytheon

• Kyndryl Holdings (NYSE:KD), the managed services company recently spun out from IBM (NYSE:IBM), on Thursday said it has reached two new large-scale digital business partnerships with Google (NASDAQ:GOOG) and defense contractor Raytheon Technologies (NYSE:RTX)
• Kyndryl (KD) will work with Google Cloud (GOOG) on a slate of technology services, including data and analytics, applied artificial intelligence and infrastructure modernization, for businesses. The two companies' work will be aimed at helping enterprises better use and analyze their data and deliver applications across their organizations.
• 
• With Raytheon (RTX), Kyndryl (KD) will work to modernize the company's digital technology network in a hybrid cloud environment. Raytheon (RTX) will use Kyndryl (KD) services to support hybrid multi-cloud computing platforms as part of its digital transformation efforts. Among the areas where Raytheon (RTX) will use Kyndryl (KD) services are in cybersecurity and internal and external employee collaborations.
• IBM (IBM) spun off Kyndryl (KD) in early November. Since then, Kyndryl (KD) has inked tech-services deal with the likes of Microsoft (NASDAQ:MSFT).

Comments

[Always Bullish]

It’s a dog with fleas. Blue horseshoe loves VZ and ATT

[brandonletsgo]

This is a standard reseller agreement for a IT services company with Google Cloud & a few millions of $ deal with Raytheon aint a big deal. This cough syrup (sounding) company is going to go way down, before it gets acquired or files for Chapter 11 protection. Avoid like plague or Covid or whatever...

[firsTraveler]

Other then adding another layer of confusion why does anyone need KD if they want to use Goog cloud?

[Allen Greathouse]

$KD is the garbage that $IBM didn’t want. Think about that.

Even IBM thought it was garbage.

[Jeremy Blum]

@John Greathouse Do the math. A negative negative = a positive.

[Allen Greathouse]

@Jeremy Blum clever thinking

[soral a raison]

And btw, what a stupid name. IBM must have paid good coin to consultants to come up with that.

[secorewb]

@soral a raison they can get naming rights from a pharmaceutical company for a suppository

[soral a raison]

As soon as the split was announced, the consensus was that KD would be the poor-parent legacy investment, while the remaining company would thrive in cloud.
Garbage reasoning. IBM is still headed by dweebs pretending to be visionaries and trying to play with the best (AMZN, GOOG), all the while hampered by a generous dividend. KD on the other hand, has huge (even if declining) revenues and a captive clientele. Consider it a royalty trust. Im pretty sure they will initiate a dividend within the year, while IBM will have to cut theirs.
This announcement confirms my thesis.

[The Beautyful One]

@soral a raison Unfortunately half of that revenue probably does not generate a profit.

[G. Blair Bauer]

Encouraging!

[BAHAMAS1]

Good news will start to flow for KD, which is currently far undervalued...imo.

[WumboWill]

We’ll that was quick @Jeremy Blum

[Jeremy Blum]

@WumboWill Hopefully the start of many more deals, now free from IBM. Google is a biggie. Ranked #7 in SA trending news so investors are noticing.

[WumboWill]

Absolutely, and again great call. I’ve learned a ton reading your articles as I learn the ropes, thanks for posting!