Kyndryl and Cloudflare Announce Global Strategic Alliance to Drive Enterprise Network Transformation, Multi-Cloud Innovation, and Zero Trust Security

Rhea-AI Summary

Kyndryl and Cloudflare announce a global strategic alliance to modernize IT infrastructures, streamline connectivity to multiple clouds, and enhance network security. The partnership aims to accelerate digital maturity, reduce IT spend, extend network security, and leverage sustainable networking.

Insights

Market Research Analyst

With the strategic alliance between Kyndryl and Cloudflare, we are witnessing a significant collaboration that can reshape enterprise IT infrastructure. The integration of Cloudflare's cloud-based connectivity and cybersecurity solutions with Kyndryl's managed services creates a synergy that addresses the rising demand for secure and efficient multi-cloud environments. This is particularly relevant as businesses increasingly rely on cloud services for operational agility and cost savings.

From a market perspective, this partnership could position both companies favorably within the IT services and cloud computing markets. The ability to offer a comprehensive package that includes consulting, network modernization and cybersecurity could be a compelling value proposition for potential clients. Furthermore, the emphasis on sustainability through reduced hardware dependency aligns with the growing trend of eco-conscious business practices, which may attract environmentally focused stakeholders.

However, the success of this alliance will depend on the execution of these integrated services and the actual performance improvements delivered to clients. It's essential to monitor customer feedback and case studies post-implementation to gauge the real-world impact of the partnership. The ability to reduce IT costs while enhancing performance and security could be a game-changer for clients, potentially leading to increased demand for Kyndryl and Cloudflare's services.

Financial Analyst

When analyzing the financial implications of the Kyndryl and Cloudflare partnership, investors should consider the potential for increased revenue streams for both companies. Kyndryl's access to Cloudflare's technology could enhance its competitive edge in IT infrastructure services, potentially leading to an expanded client base. For Cloudflare, the partnership with a major service provider like Kyndryl could mean broader market penetration and increased utilization of its cloud and cybersecurity services.

The partnership's focus on reducing clients' spend on private network links and appliances may translate into cost savings that could improve profit margins for both companies. Additionally, the provision of a self-service model and the reduction in IT infrastructure costs reported by Kyndryl could signal efficiency gains that are attractive to investors. These aspects should be considered alongside the companies' financial health, market conditions and the competitive landscape to assess the potential impact on stock performance.

Investors should also be mindful of the long-term strategic benefits versus the short-term costs associated with such alliances. There may be upfront investments required to integrate services and technology, which could affect short-term financial metrics but potentially lead to long-term gains in market share and profitability.

Cybersecurity Expert

The emphasis on robust network security as part of the Kyndryl and Cloudflare alliance is a response to the escalating threat landscape that enterprises face today. By leveraging Cloudflare's DDoS protection and mitigation solutions, the partnership aims to provide a fortified defense against increasingly sophisticated cyber threats. This is a critical consideration for enterprises as network security is paramount to maintaining business continuity and protecting sensitive data.

The move towards a Zero Trust model, facilitated by the partnership, represents a strategic shift in cybersecurity practices. Zero Trust is an approach that assumes all users and devices, both inside and outside the organization's network, are potentially compromised and must be verified before being granted access to resources. This model is becoming the standard for modern enterprises and the ability of Kyndryl and Cloudflare to deliver these solutions at scale could be a significant differentiator.

It's important to note that the success of cybersecurity initiatives often hinges on their seamless integration and the minimal disruption to business operations. The alliance's ability to modernize networks while ensuring security and continuity will likely be a key factor in their clients' satisfaction and the partnership's overall success.

Alliance will focus on modernizing IT infrastructures by streamlining connectivity to multiple clouds and data centers, while providing robust network security

NEW YORK and SAN FRANCISCO, March 20, 2024 /PRNewswire/ -- Kyndryl (NYSE: KD), the world's largest IT infrastructure services provider, and Cloudflare, Inc. (NYSE: NET), a leading connectivity cloud company, today announced a global strategic alliance, an expansion of their partnership, to enable enterprises to migrate and manage networks for multi-cloud connectivity and comprehensive network security. The partnership combines Kyndryl's end-to-end consulting services and expertise across enterprise networking, security and resiliency with Cloudflare's robust connectivity cloud that offers security, performance, and cloud flexibility all-in-one.

Kyndryl and Cloudflare first partnered in May 2023 to modernize enterprise infrastructure with end-to-end services, bringing managed WAN-as-a-Service and Cloudflare Zero Trust to the entire corporate network. Now, the two companies are focused on further innovation across all technology stacks to design, build, manage and modernize customers' vital systems. Cloudflare's capabilities will now be activated across Kyndryl's practice areas including Network & Edge and Security & Resiliency.

Enterprises have turned to Cloudflare and Kyndryl since they started partnering for complete network modernization, protections, and performance solutions — across sectors worldwide — from a supply chain distribution provider in the US, a leading financial institution in Spain, to Ashok Leyland, a leading commercial vehicle manufacturer in India.

"As one of the premier automotive manufacturers worldwide, it is imperative that we are equipped with robust and secure networks to ensure our global IT infrastructure runs seamlessly. From dealer management to vehicle tracking, we need to run our 50+ Internet applications with zero or minimal disruption and enhanced security," said Vinod Gopinathan, CIO at Ashok Leyland. "Kyndryl's managed services with Cloudflare's DDoS protection and mitigation solution enables Ashok Leyland to focus on our pursuit to technology innovation, advanced engineering, and enhanced connectivity."

The Kyndryl and Cloudflare global strategic alliance is focused on helping enterprises streamline connectivity to multiple clouds and data centers, while providing robust network security. Together, they will help businesses:

• Accelerate digital maturity and network modernization: Cloudflare is the technology platform and Kyndryl is the services provider that will shepherd customers through this journey. Together, Kyndryl and Cloudflare will guide customers to increase security across the network, enhance performance of business-critical applications, and seamlessly access business data.
• Reduce spend on private network links and appliances while saving IT teams from manual work: The two companies will provide enterprises with leading global network capabilities needed for flexible work environments, including reducing tech debt and legacy architecture. Kyndryl will advise and assist enterprises in managing their IT infrastructure as they evolve their networks and transfer workloads into Cloudflare's connectivity cloud.
• Extend network security to offices and data centers by replacing traditional WAN: Cloudflare's complete enterprise cybersecurity can tackle risks and attacks from every location and vector. The Zero Trust migration with Kyndryl seamlessly modernizes networks while helping to ensure business continuity.
• Leverage sustainable networking: Cloudflare's connectivity cloud eliminates the need for hardware and traditional networking equipment. With Kyndryl's expertise in technology stack migration combined with Cloudflare's global network services, the partnership enables customers to seamlessly integrate environmental sustainability directly into their business model. Organizations migrating from on-premises network hardware to Cloudflare's cloud-based services can decrease related carbon emissions between 78% and 96%.

As testament to the partnership, Cloudflare has helped Kyndryl transform its network services and provide cloud cybersecurity protection, including DDoS mitigation. Cloudflare currently protects Kyndryl's internet properties, with Kyndryl operating on a self-service model including the ability to make changes seamlessly throughout the transformation without incurring additional charges. Since adopting Cloudflare's global connectivity cloud network and security services, Kyndryl has seen a reduction in IT infrastructure costs, accelerated web traffic and increased performance for data load balancing.

"Together with Cloudflare, we are enabling enterprises to migrate to next-generation networks and capitalize on advanced cloud features to achieve greater agility and innovation. We are thrilled to expand our relationship with Cloudflare, an industry leader in cloud networking," said Paul Savill, Global Practice Leader of Network and Edge Computing at Kyndryl. "With Kyndryl's expert managed and consulting services, we will be helping our joint customers secure, streamline and simplify their IT infrastructure, all while reducing costs and improving operational efficiencies."

"Cloudflare and Kyndryl is the duo that enterprises can fully lean on to migrate their networks and innovate across the cloud. Working hand-in-hand with customers, we've seen the demand and impact from Cloudflare's leading connectivity cloud and comprehensive cybersecurity for business environments, right in hand with Kyndryl's industry-leading consulting and managed network services," said Matt Harrell, Global Head of Channels and Alliances at Cloudflare. "Since partnering with Kyndryl, we have been able to scale Cloudflare's services at a new level. Our global strategic alliance can support any enterprise now across their entire network stack, regardless of where they stand in their cloud journey."

To learn more about the Kyndryl and Cloudflare Global Strategic Alliance, please check out the resources below:

• Kyndryl Global Strategic Alliances
• Cloudflare Channel Partner Program

About Kyndryl
Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider, serving thousands of enterprise customers in more than 60 countries. The company designs, builds, manages and modernizes the complex, mission-critical information systems that the world depends on every day. For more information, visit www.kyndryl.com.

About Cloudflare
Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare's connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.

Powered by one of the world's largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe. 

Learn more about Cloudflare's connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at https://radar.cloudflare.com.

Follow Cloudflare: Blog | X | LinkedIn | Facebook | Instagram

Cloudflare, the Cloudflare logo, and other Cloudflare marks are trademarks and/or registered trademarks of Cloudflare, Inc. in the U.S. and other jurisdictions. All other marks and names referenced herein may be trademarks of their respective owners.

Forward-Looking Statements
This press release includes certain "forward-looking statements" within the meaning of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,, which statements involve substantial risks and uncertainties. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding future expectations related to how Kyndryl and Cloudflare will work together, how Kyndryl plans to leverage the Cloudflare products and connectivity cloud capabilities, expected benefits to customers from the global alliance between Kyndryl and Cloudflare, the companies' future plans to release additional capabilities, and comments made by members of Cloudflare's and Kyndryl's management and others. Such forward-looking statements often contain words such as "will," "anticipate," "predict," "project," "plan," "forecast," "estimate," "expect," "intend," "target," "may," "should," "would," "could," "outlook", "believes", "seeks" and other similar words or expressions or the negative thereof or other variations thereon. All statements, other than statements of historical fact, including without limitation statements representing the companies' current beliefs about future events, transactions, strategies, operations and financial results, may be forward-looking statements. These statements do not guarantee future performance and speak only as of the date of this press release and the companies do not undertake to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Actual outcomes or results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties including those described in the "Risk Factors" section of Kyndryl's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 26, 2023 and Kyndryl's other SEC filings, and Cloudflare's Annual Report on Form 10-K filed with the SEC on February 21, 2024 and Cloudflare's other SEC filings. 

Media Contacts

Kyndryl 
press@kyndryl.com 

Cloudflare, Inc.
press@cloudflare.com 

 

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SOURCE Kyndryl

FAQ

What is the purpose of the global strategic alliance between Kyndryl and Cloudflare?

The alliance focuses on modernizing IT infrastructures, streamlining connectivity to multiple clouds, and providing robust network security.

How can enterprises benefit from the partnership between Kyndryl and Cloudflare?

Enterprises can accelerate digital maturity, reduce IT spend, extend network security, and leverage sustainable networking.

What services are offered by Kyndryl and Cloudflare through their partnership?

Kyndryl provides end-to-end consulting services across enterprise networking, security, and resiliency, while Cloudflare offers robust connectivity cloud with security, performance, and cloud flexibility.

Which companies have turned to Cloudflare and Kyndryl for network modernization solutions?

Companies worldwide, including a supply chain distribution provider in the US, a leading financial institution in Spain, and Ashok Leyland in India, have sought Cloudflare and Kyndryl's solutions.

How does Cloudflare's connectivity cloud benefit enterprises migrating to next-generation networks?

Cloudflare's connectivity cloud eliminates the need for hardware and traditional networking equipment, reducing carbon emissions and improving operational efficiencies.