Kyndryl – A Melting Ice Cube with a Consulting Mirage Part II

1. "So when they say the revenue for consulting is growing … there's nothing to back it up," Noah claimed. We're told Kyndryl is just taking from managed service accounts (its outsourcing accounts) and counting that as consulting work. "They're just taking it from the left pocket to the right pocket and saying, 'Oh, that's consulting business,'" Noah explained.

Source:https://www.theregister.com/2024/12/08/kyndryl_consulting_business/#:~:text='%22,%2C%22%20our%20source%20told%20us

2. “Kyndryl does not have much in the way of their own proprietary software and hardware so the left pocket to right pocket is moving from being a provider of IT services in support of "legacy IBM contracts" to an IT service provider of "new consulting contracts”. End of day, still trying to provide a billable service but one that is less sticky and more commoditized.” – industry consultant we interviewed

3. “Kyndryl wants investors to think consult growth will eventually grow larger and outpace the decline in legacy mainframe managed services, enabling total top line to grow, but in reality, Kyndryl is facilitating and enabling AWS et al to develop strategic, long-term relationships with their mainframe customers.” – industry consultant we interviewed

2025 03 27 - a melting ice cube with a consulting mirage - Part II - Final to PRINT.pdf

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