Kyndryl expands collaboration with EY to optimize mission-critical auditing and consulting operations
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Insights
Examining the recent announcement by Kyndryl, the implications for the IT infrastructure services market are significant. Kyndryl's affirmation of a five-year agreement with Ernst & Young LLP (EY) solidifies its market position and demonstrates the value of long-term partnerships in the technology services sector. This commitment from a Big Four accounting firm showcases confidence in Kyndryl's capabilities, particularly in managing SAP workloads, which are critical for financial processing on a global scale.
Furthermore, the focus on enhancing cybersecurity through Zero Trust principles and advanced security measures indicates a growing market need for robust IT security solutions. This move aligns with industry trends where cybersecurity is becoming a top priority for businesses, especially in light of increasing cyber threats and stringent compliance requirements. The integration of new technologies for vulnerability scanning and identity verification systems is likely to set a precedent in the industry, possibly prompting competitors to elevate their security offerings.
From a financial perspective, the renewal of Kyndryl's contract with EY is a positive indicator of stable future revenue streams. Given the size and reputation of EY, this deal is likely to be viewed favorably by investors and could potentially influence Kyndryl's stock performance. The engagement, which includes modernization and security services, suggests that Kyndryl is not only retaining key clients but also expanding its service offerings. This diversification can be seen as a strategic move to increase the average revenue per user (ARPU), an important metric in the IT services industry.
It's also worth noting that the emphasis on cybersecurity and compliance could open additional revenue channels for Kyndryl, as these are areas with high demand and willingness to invest from enterprises. The long-term nature of the contract provides a degree of financial predictability, which is particularly valuable in a sector known for rapid technological changes and competitive pressures.
The adoption of Zero Trust security principles by Kyndryl as part of their service enhancement for EY represents a significant development in the field of cybersecurity. Zero Trust is a security model that assumes breach and verifies each transaction as if it originates from an open network. This approach is increasingly relevant as organizations face a more complex and sophisticated threat landscape. By integrating endpoint security technology and enhancing security vulnerability scanning, Kyndryl is not only addressing current security challenges but also anticipating future compliance requirements and auditing standards.
The proactive stance on evolving data protection and service continuity is a testament to the importance of cybersecurity in maintaining the integrity of business transactions. For EY's clients, this translates to a higher level of trust in the confidentiality and security of their data, which is paramount in the auditing and consulting space. Kyndryl's initiative could serve as a benchmark for IT operations security, potentially influencing cybersecurity practices across the industry.
Kyndryl to help enhance SAP® processes and bolster EY's security through Kyndryl Consult
This work builds on a nearly decade-long collaboration under which Kyndryl has run and managed EY SAP workloads. EY will also leverage the experience of Kyndryl Consult to help analyze and optimize its SAP processes. With insight and guidance from Kyndryl Consult experts, EY can identify new performance efficiencies that support its current SAP environment, as well as its longer-term growth and modernization goals.
"The collaboration with Kyndryl is critical to the overall business success of EY," said EY Technology Partner, Tim Monson. "The EY SAP environment is a mix of both on-premises and cloud solutions, and Kyndryl plays a key role in supporting EY global financial processing on SAP around the globe. Kyndryl's commitment to a true collaboration is what makes the relationship work and is truly special."
"Just as our teams across Kyndryl help our customers solve their biggest business challenges, EY has a proven history of helping its clients create long-term value," said Amy Salcido, President, Kyndryl US. "We understand EY has rapidly changing requirements and business needs. Through our experience and expertise, we are enabling them to react with agility and better support their clients. We're proud to be a longstanding collaborator and look forward to all we'll continue to accomplish together."
Additionally, Kyndryl Consult will enhance the cyber resiliency of EY IT operations with further security for mission-critical workloads, deliver service continuity and evolve data protection around business transactions with EY customers. Kyndryl will integrate new, endpoint security technology using Zero Trust principles to support EY's compliance with shifting auditing standards and improve protection against cybersecurity threats. Specifically, Kyndryl is incorporating new technology to enhance security vulnerability scanning, as well as integrating and running new malware and identity verification systems.
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.
Kyndryl Press Contact
press@kyndryl.com
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SOURCE Kyndryl
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