IBM Spinoff Kyndryl strikes private 5G deal with Nokia

In a significant development Kyndryl, a former infrastructure services business of IBM, has struck a deal with Nokia to automate its factories using cloud computing and artificial intelligence over wireless networks.

After being spun off from IBM in November 2021, Kyndryl has started building its wireless network business and has signed pacts with cloud providers including Microsoft and Google.

According to Kyndryl’s Global Practice Leader Paul Savill, it was important for Kyndryl to have a separate identity since it helps clinching contracts with companies that are viewed as IBM’s competitors.

“The announcement we are making with Nokia is an important one for us because it’s kind of our beachhead announcement, and it’s where we are going to start building our (private network) business,” said Savill.

Private 5G networks plays an important role in bringing high-speed connections to businesses since the bandwidth is not shared with others making it ideal for applications such as artificial intelligence, robotics, and machine learning.

The global private 5G network market is expected to touch $14.28 billion by 2028, according to Grand View Research.

Nokia, which has its own set of partnerships and working on providing private 5G gear, has more than 400 customers and is looking to jointly target Kyndryl’s 4,000 business customers.

“Manufacturing is by far the largest market… we estimate about 10 million factory sites,” said Chris Johnson head of Nokia’s enterprise business.

He went on to add, “Nokia has been working with several automakers, including Volkswagen, as well as with players from other industries including miners, container port operators as well as wind farms,” said Johnson.

Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

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