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Kyndryl, the world's largest IT infrastructure services provider, has acquired Skytap, a Seattle-based cloud migration company. This strategic move aims to bolster Kyndryl's hybrid cloud services, enabling seamless transitions of traditional on-premise systems to cloud environments. The acquisition underscores Kyndryl's commitment to enhancing its mission-critical capabilities and expanding its global partnerships.
Founded in 2006, Skytap specializes in cloud infrastructure services, focusing on the migration and operation of IBM Power workloads in the cloud. Its core offerings include Skytap on Azure, Skytap on IBM Cloud, and Skytap Virtual IT Labs. Skytap's unique selling points include the ability to migrate workloads without refactoring, multi-platform support for IBM i, AIX, and Linux on Power, and advanced cloud services like analytics and AI. Additionally, it offers scalable virtual training and sales demos through its Virtual IT Labs.
Kyndryl is a leading global IT infrastructure services provider, known for designing, building, managing, and modernizing complex, mission-critical information systems for enterprise customers across various industries. Its key offerings include services in applications, data and AI, cloud, digital workplace, core enterprise and zCloud, network and edge, and cyber resilience. Additionally, Kyndryl Consult provides technology consulting services. The company holds a dominant market position, serving thousands of enterprise customers in over 60 countries.
Kyndryl announced the acquisition of Skytap on May 13, 2024. This strategic move aligns with Kyndryl's broader efforts to enhance its hybrid cloud services portfolio amid a period of significant industry transformation. The timing coincides with Kyndryl's recent financial performance improvements and the divestiture of its Canadian securities business, indicating a focused strategy on core growth areas and advanced cloud solutions.
Market Expansion: The acquisition of Skytap by Kyndryl is a strategic move to expand its hybrid cloud services portfolio. This acquisition allows Kyndryl to offer enhanced cloud migration solutions to its customers, thereby broadening its market reach and service offerings. Additionally, it helps Kyndryl enhance its capabilities in transitioning complex workloads to support hyperscaler environments and running mission-critical systems in the public cloud.
Technology Integration: Skytap's technology helps companies run traditional on-premise systems in cloud environments such as Microsoft Azure or IBM Cloud. By acquiring Skytap, Kyndryl integrates this cloud migration technology into its existing services, enhancing its capabilities in the hybrid cloud market. Skytap’s innovative technologies will be integrated with Kyndryl’s existing services to accelerate the adoption of advanced analytics, artificial intelligence, and DevSecOps.
Competitive Advantage: The acquisition of Skytap provides Kyndryl with a competitive advantage by adding specialized cloud migration solutions to its portfolio. This move strengthens Kyndryl's position in the IT infrastructure services market, allowing it to better serve customers looking to transition to hybrid cloud environments. Additionally, the integration of Skytap's experienced team, including CEO Bradley Schick, further bolsters Kyndryl's expertise and service quality.
The acquisition of Skytap by Kyndryl has led to significant changes in operations and management. Skytap's CEO Bradley Schick and its employees have transitioned to Kyndryl, integrating their expertise into Kyndryl's broader organizational framework. This move is expected to streamline operations and enhance the delivery of hybrid cloud services. Additionally, Skytap's technology will be leveraged to support Kyndryl's mission-critical infrastructure platforms, accelerating the adoption of advanced analytics, artificial intelligence, and DevSecOps.
In terms of product offerings, the acquisition will enable Kyndryl to offer more comprehensive hybrid cloud solutions. Skytap's capabilities in cloud migration and support for IBM Power workloads will be integrated into Kyndryl's services, providing customers with enhanced flexibility to scale workloads within Microsoft Azure and IBM Cloud environments. Employee reactions have been generally positive, with the transition seen as an opportunity for growth and innovation. Customers, including major firms like Honeywell and Okta, are expected to benefit from the expanded service offerings and improved cloud migration solutions.
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