Kyndryl expands AI and generative AI services and skills to accelerate mainframe modernization
Kyndryl (NYSE: KD), the largest IT infrastructure services provider, introduces new AI and generative AI services to modernize mainframe systems. Announced on May 16, 2024, the initiative focuses on training over 5,000 mainframe professionals in AI skills to enhance hybrid cloud environments.
The company aims to support organizations in deploying AI-enabled workloads, integrating mainframe data with cloud systems, and optimizing workloads through AI-driven insights. Kyndryl's comprehensive services will assist in workload migration, secure data access, application code modernization, and developer agility.
Research shows 90% of organizations consider mainframes essential, with 95% modernizing within hybrid clouds. Kyndryl's new AI services, supported by partnerships and its Kyndryl Bridge platform, are expected to reduce IT transformation costs, enhance agility, and drive data-driven decision-making.
- Introduction of new AI and generative AI services targeting mainframe modernization.
- Training over 5,000 mainframe professionals in AI skills to support hybrid cloud environments.
- Comprehensive services for workload migration, secure data access, and application modernization.
- Partnerships and collaborations to help customers achieve AI goals.
- Potential to reduce IT transformation costs and enhance agility.
- Support for integrating AI with mainframe data to drive better business outcomes.
- No specific financial data provided to evaluate potential revenue impact.
- Training 5,000 professionals may incur significant costs without immediate ROI.
- Dependence on successful collaboration with hyperscalers and other partners.
- Unclear timeline for the rollout and full adoption of new services.
Insights
Kyndryl's expansion into AI and generative AI services for mainframe modernization marks a significant strategic move. The integration of AI into mainframe environments can offer enhanced data analytics and operational efficiencies, which are important for many large enterprises reliant on legacy systems. By training over 5,000 mainframe professionals with new AI skills, Kyndryl is addressing a major industry pain point: the skills gap. Many organizations struggle with modernizing mainframes due to a lack of expertise in newer technologies. This initiative not only improves Kyndryl’s service offerings but also potentially positions them as leaders in the hybrid cloud transformation sector. Additionally, the use of AI to automate and optimize code conversion processes—from languages like COBOL to modern languages—could significantly reduce the cost and time associated with modernization projects. This is a substantial benefit for enterprises looking to reduce operational expenses and improve agility in a competitive market.
From a financial perspective, Kyndryl's announcement is poised to positively impact its revenue streams. The mainframe modernization market is significant, with a large portion of enterprises still relying on these systems for mission-critical operations. By offering comprehensive AI and generative AI services, Kyndryl can tap into a lucrative market segment that is in dire need of modernization. Moreover, the collaboration with hyperscalers and other partners can help Kyndryl in cross-selling opportunities and expanding its client base. On the cost side, the automation and optimization capabilities introduced through AI could lead to reduced implementation costs for clients, making Kyndryl’s services more attractive. Furthermore, focusing on AI and generative AI aligns with current market trends, which could lead to increased investor confidence and potentially a higher stock valuation for Kyndryl in the short to medium term.
5,000+ Kyndryl mainframe professionals are training to speed deployment of AI-enabled workloads in hybrid cloud environments
Kyndryl is committed to furthering the adoption of AI and generative AI by educating more than 5,000 of its mainframe professionals with new AI skills on top of their tens of thousands of certifications in mainframe and cloud technologies. With this initiative, Kyndryl will be poised to help mainframe customers accelerate development and deployment of AI and generative AI-enabled solutions in their hybrid cloud environments.
At 60 years of age, the mainframe remains a strategic IT foundation for thousands of organizations worldwide. According to research from Kyndryl,
To help mainframe customers explore, kick-start or scale the deployment of responsible AI, Kyndryl is tapping into AI and generative AI tooling as well as the operational insights from its AI-infused Kyndryl Bridge open integration platform. In addition, the expanded AI capabilities for mainframe are supported by Kyndryl Consult and complement the company's AI and data advisory and implementation services which include assessments, innovation workshops and proofs of concept. Kyndryl is also continuing its collaboration with the hyperscalers and other partners to assist customers in defining and achieving their AI goals to drive critical business outcomes.
"Kyndryl is taking a bold next step to enable and accelerate our customers' mainframe modernization journey by unlocking their applications and data through deployment of AI and generative AI," said Petra Goude, Global Practice Leader for Core Enterprise & zCloud at Kyndryl. "Our innovative approach will help customers reduce IT transformation efforts and costs, enhance agility and resiliency, mitigate skills challenges, and drive better outcomes by optimizing their mainframe estates to thrive in hybrid environments."
"The success of AI depends heavily on an organization's ability to fully leverage all enterprise information assets regardless of data format or application platform. Mission-critical information created and managed by mainframes needs to be fully integrated into enterprise generative AI and other data-intensive use cases in order to fully enable data-driven decision making and digital innovation," explains Mary Johnston Turner, IDC Research Vice President for the Future of Digital Infrastructure. "Kyndryl's commitment to mainframe modernization for generative AI and other AI use cases targets this set of important enterprise infrastructure requirements."
Kyndryl's new comprehensive services can help mainframe customers optimize the right workload on the right platform using AI and generative AI for the following scenarios and potential use cases:
Moving workloads off the mainframe to the cloud:
- Deliver generative AI-produced and Kyndryl-enhanced application documentation.
- Enable fast and efficient automated conversion of mainframe application code to modern languages (e.g. COBOL to Java).
- Provide AI-based insights into business logic and data relationships to help customers quickly address new business opportunities.
Integrating mainframe applications and data with cloud or distributed environments:
- Assist in enabling secure access to mainframe data used in cloud-based AI solutions and secure interoperability between mainframe and cloud solutions.
- Drive improved asset financial usage through AI-infused, dynamic workload placement.
Modernizing workloads on the mainframe:
- Advise on application code modernization to avoid potential production issues.
- Integrate real-time AI solutions into mainframe applications for better business insights.
- Enable quantum-safe data encryption to enhance customers' compliance with their security and regulatory requirements.
Optimizing application developer agility:
- Implement DevSecOps tools and processes, including AI-based recommendations, for real-time insights into programming best practices and faster time-to-market for customers.
- Enable data scientists to build new AI models and integrate these LLMOps tools with existing DevSecOps tools and processes.
For more information about Kyndryl's AI and generative AI services for mainframe modernization, visit Mainframe Modernization | Kyndryl.
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, please visit www.kyndryl.com.
Kyndryl Press Contact
press@kyndryl.com
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