IBM’s coming spinoff of its Global Technology Services division into a newly created, publicly traded company called Kyndryl is raising an array of concerns for the company’s existing clients.

Kyndryl, IBM says, will focus on client-owned infrastructures and offer “hosting and network services, services management, infrastructure modernization and migrating and managing multi-cloud environments,” while the “legacy IBM company will focus on its open cloud hybrid platform and AI businesses.”

This is not the first time a technology company has decided to streamline its operations through a spinoff, but this particular spinoff raises interesting contractual issues for IBM’s current clients.

For key considerations and action steps for current IBM clients, read our recent Technology Transactions and Strategic Sourcing Alert here.