Kyndryl’s recent strategic maneuvers mark a pivotal moment for the company and its growing influence across the global enterprise technology landscape. In a coordinated series of announcements, Kyndryl introduced new cloud modernization solutions to the Australian market, formed a high-profile global alliance with data powerhouse Databricks, and celebrated the tangible impact of its philanthropic commitment to strengthening cybersecurity for not-for-profits through its Kyndryl Foundation. Each move underscores the company’s renewed mission to bridge digital transformation gaps, not just for large commercial clients but for critical public-interest and social sectors as well.
The centerpiece of Kyndryl’s latest channel developments is the expansion of its cloud modernization platform, Skytap, into the Australian market. Acquired by Kyndryl prior to this rollout, Skytap is designed primarily as an Infrastructure-as-a-Service (IaaS) solution facilitating the migration and operation of mission-critical, legacy data center workloads—particularly those reliant on IBM Power systems and mainframes—onto modern cloud platforms.
Setting a new benchmark in the region, this deployment marks the tenth Microsoft Azure data center region globally where Skytap is live, specifically launching in the Azure Australia East region in Sydney. This move is highly strategic. Australian enterprises, particularly those in regulated sectors such as finance, healthcare, and government, have long depended on AIX, IBM i, and other legacy workloads for vital business functions. The challenge of transitioning such workloads to the cloud—without costly rewrites or re-platforming exercises—has traditionally been a barrier to modernization.
Ashish Kumar, president of Kyndryl Australia and New Zealand, emphasizes the timing: “We’ve seen surging demand for IaaS for Power workloads in Australia, and we expect interest to grow during the coming years as local organizations seek more efficient ways to migrate to the cloud without the need to re-write or re-platform applications.” That message is resonating strongly with IT leaders pressed to deliver efficiency and innovation while maintaining operational resilience.
What sets Skytap apart is its native compatibility with legacy workloads combined with direct integration into Azure’s ecosystem. This allows local IT teams to move applications to the cloud intact, instantly leveraging Azure-native tools—AI, machine learning, DevOps, advanced security—without the operational disruptions often associated with cloud migrations. According to Microsoft’s Evan Williams, “By integrating Skytap with Azure’s native services, we are enabling businesses to leverage advanced AI, machine learning, and security capabilities from day one, driving efficiency and business continuity.”
This deployment is not just about technical migration. It reflects a maturing enterprise cloud landscape in Australia, offering unprecedented flexibility to organizations under regulatory or technological constraints. The promise is end-to-end modernization: from strategic planning through migration and ongoing management, Kyndryl positions itself as a lifecycle partner, bringing together its system integration heritage and next-gen cloud services.
The appeal for organizations is concrete: minimized capital expenditures, reduced operational disruption, and—crucially—a material lowering of risk when moving critical legacy workloads. In the words of multiple industry analysts, the availability of Skytap in-region may become a case study in hybrid cloud adoption for organizations with mission-critical, high-value workloads.
At the heart of the partnership lies the integration of Kyndryl’s proven data and AI modernization services with the Databricks Data Intelligence Platform. The collaborative value proposition spans:
Independent analysis supports this direction. According to Gartner and Forrester reports, enterprises are increasingly prioritizing unified data platforms with strong AI integrations to drive business agility and insight. The Kyndryl-Databricks alliance enters a market searching for precisely these outcomes: platforms that don’t just store and process data, but elevate its value via AI-driven insight and actionable intelligence.
There are risks, of course. Enterprise clients pursuing AI at scale often struggle with fragmented data landscapes, training deficits, and concerns about explainability and governance. The promise of the Kyndryl-Databricks duo is compelling, but as with any such partnership, the real-world test will lie in the depth of technology integration and the ability to deliver business value—rather than just technical feasibility—at scale.
Launched as a pilot in 2024, the program has already provided fully funded cyber resilience training to nearly 400 learners, surpassing initial targets by over 340%. The longer-term goal: reach 1,400 individuals over two years, with a special focus on under-resourced NFPs providing critical community services.
According to Erandhi Mendis, Social Impact Leader at Kyndryl A/NZ, “Cyber resilience shouldn’t be a privilege. We’re excited to continue our partnership with UTS to support broader systemic improvements in Australia’s digital safety landscape and a more inclusive cybersecurity workforce.”
This is a crucial intervention at a critical time. Recent Australian government reports and independent research confirm a rising tide of cyberattacks targeting charities, healthcare providers, and small enterprises. Incidents often result not just in data loss, but in operational shutdowns and major reputational harm. The training offered by the Cyber Resilience Program aims to democratize cybersecurity knowledge—both online and face-to-face—and create sustainable pathways toward cybersecurity careers for those in the not-for-profit sector.
Dr. Peta Wyeth, Dean, Faculty of Engineering and IT at UTS, notes that “Through the generous support of the Kyndryl Foundation, we are addressing the growing demand for online and face-to-face cyber resilience training and cyber career pathway programs. UTS is proud to be providing a service that helps not-for-profit organizations and the communities they serve through training that addresses head-on the growth in cybercrime that is targeting small enterprises.”
This is not just marketing rhetoric. The Skytap rollout enables seamless hybrid cloud operations for legacy infrastructure. The Databricks partnership positions Kyndryl at the forefront of the burgeoning AI and data modernization market—a sector expected to be worth hundreds of billions in the next decade according to McKinsey and IDC projections. Finally, the Foundation’s initiatives ensure that Kyndryl remains relevant beyond boardrooms and server rooms, making material contributions to cyber safety and workforce diversity.
Looking forward, the company’s differentiation will likely hinge on its ability to scale these strategies while maintaining the promises made: seamless cloud migration without disruption; AI and analytics that drive business results, not just dashboards; and a measurable, positive impact on communities grappling with digital threat.
For the channel community, these developments are both opportunity and challenge. Kyndryl’s focus on co-investment, ecosystem partnerships, and shared outcomes creates new avenues for collaboration—but also raises the bar for channel partners in terms of technical expertise, service quality, and client impact.
In sum, Kyndryl’s latest moves represent more than incremental advances. They signal an ambitious, strategic vision where cutting-edge technology, practical modernization, and social good are deeply intertwined. The litmus test will be the extent to which this ambition translates into measurable business and community outcomes in the months and years to come—outcomes that industry stakeholders and clients alike will be watching closely.
Source: Channel Insider Kyndryl Makes a Series of Announcements Impacting the Channel
Expanding Skytap’s Footprint: Bridging Legacy with Cloud Modernization
The centerpiece of Kyndryl’s latest channel developments is the expansion of its cloud modernization platform, Skytap, into the Australian market. Acquired by Kyndryl prior to this rollout, Skytap is designed primarily as an Infrastructure-as-a-Service (IaaS) solution facilitating the migration and operation of mission-critical, legacy data center workloads—particularly those reliant on IBM Power systems and mainframes—onto modern cloud platforms.Setting a new benchmark in the region, this deployment marks the tenth Microsoft Azure data center region globally where Skytap is live, specifically launching in the Azure Australia East region in Sydney. This move is highly strategic. Australian enterprises, particularly those in regulated sectors such as finance, healthcare, and government, have long depended on AIX, IBM i, and other legacy workloads for vital business functions. The challenge of transitioning such workloads to the cloud—without costly rewrites or re-platforming exercises—has traditionally been a barrier to modernization.
Ashish Kumar, president of Kyndryl Australia and New Zealand, emphasizes the timing: “We’ve seen surging demand for IaaS for Power workloads in Australia, and we expect interest to grow during the coming years as local organizations seek more efficient ways to migrate to the cloud without the need to re-write or re-platform applications.” That message is resonating strongly with IT leaders pressed to deliver efficiency and innovation while maintaining operational resilience.
What sets Skytap apart is its native compatibility with legacy workloads combined with direct integration into Azure’s ecosystem. This allows local IT teams to move applications to the cloud intact, instantly leveraging Azure-native tools—AI, machine learning, DevOps, advanced security—without the operational disruptions often associated with cloud migrations. According to Microsoft’s Evan Williams, “By integrating Skytap with Azure’s native services, we are enabling businesses to leverage advanced AI, machine learning, and security capabilities from day one, driving efficiency and business continuity.”
This deployment is not just about technical migration. It reflects a maturing enterprise cloud landscape in Australia, offering unprecedented flexibility to organizations under regulatory or technological constraints. The promise is end-to-end modernization: from strategic planning through migration and ongoing management, Kyndryl positions itself as a lifecycle partner, bringing together its system integration heritage and next-gen cloud services.
The appeal for organizations is concrete: minimized capital expenditures, reduced operational disruption, and—crucially—a material lowering of risk when moving critical legacy workloads. In the words of multiple industry analysts, the availability of Skytap in-region may become a case study in hybrid cloud adoption for organizations with mission-critical, high-value workloads.
Strategic Alliance with Databricks: AI at Scale, Data Modernization, and the Pursuit of Value
Kyndryl’s channel ambitions are not limited to workload migration. In a parallel move, the company announced a global strategic alliance with Databricks, one of the leaders in the fields of big data analytics and AI platforms. The alliance is built to accelerate customers’ digital transformation initiatives by enabling AI at meaningful scale and fostering true data-driven decision-making within organizations.At the heart of the partnership lies the integration of Kyndryl’s proven data and AI modernization services with the Databricks Data Intelligence Platform. The collaborative value proposition spans:
- Establishing and Modernizing Data Foundations: Kyndryl will help customers adopt Databricks by handling data architecture modernization, prioritizing security, scalability, and data quality—key requirements for regulated enterprises.
- Accelerating AI Adoption: Customers stand to gain from Kyndryl’s ability to leverage Databricks’ advanced analytics and AI capabilities, unlocking deeper insights and operationalizing AI applications.
- Integrating SAP Data: The alliance will support businesses dealing with complex SAP landscapes, integrating operational data with the SAP Business Data Cloud and SAP Databricks, aiming to boost business value and productivity.
- Delivering Analytical Insights: Uniquely, Kyndryl’s deep mainframe expertise plays a crucial role, bridging the legacy/modernization divide by delivering analytics across hybrid IT environments.
Independent analysis supports this direction. According to Gartner and Forrester reports, enterprises are increasingly prioritizing unified data platforms with strong AI integrations to drive business agility and insight. The Kyndryl-Databricks alliance enters a market searching for precisely these outcomes: platforms that don’t just store and process data, but elevate its value via AI-driven insight and actionable intelligence.
There are risks, of course. Enterprise clients pursuing AI at scale often struggle with fragmented data landscapes, training deficits, and concerns about explainability and governance. The promise of the Kyndryl-Databricks duo is compelling, but as with any such partnership, the real-world test will lie in the depth of technology integration and the ability to deliver business value—rather than just technical feasibility—at scale.
Kyndryl Foundation and the Push for Cyber Resilience: Reaching the Not-for-Profit Sector
In a move demonstrating corporate responsibility with genuine impact, the Kyndryl Foundation has joined forces with the University of Technology Sydney (UTS) to conclude the first major phase of the Cyber Resilience Program for Australia’s not-for-profit (NFP) sector. This initiative is far more than a typical philanthropic gesture; it’s a well-resourced response to the growing wave of cyber threats targeting small and midsize organizations, especially those with limited IT budgets.Launched as a pilot in 2024, the program has already provided fully funded cyber resilience training to nearly 400 learners, surpassing initial targets by over 340%. The longer-term goal: reach 1,400 individuals over two years, with a special focus on under-resourced NFPs providing critical community services.
According to Erandhi Mendis, Social Impact Leader at Kyndryl A/NZ, “Cyber resilience shouldn’t be a privilege. We’re excited to continue our partnership with UTS to support broader systemic improvements in Australia’s digital safety landscape and a more inclusive cybersecurity workforce.”
This is a crucial intervention at a critical time. Recent Australian government reports and independent research confirm a rising tide of cyberattacks targeting charities, healthcare providers, and small enterprises. Incidents often result not just in data loss, but in operational shutdowns and major reputational harm. The training offered by the Cyber Resilience Program aims to democratize cybersecurity knowledge—both online and face-to-face—and create sustainable pathways toward cybersecurity careers for those in the not-for-profit sector.
Dr. Peta Wyeth, Dean, Faculty of Engineering and IT at UTS, notes that “Through the generous support of the Kyndryl Foundation, we are addressing the growing demand for online and face-to-face cyber resilience training and cyber career pathway programs. UTS is proud to be providing a service that helps not-for-profit organizations and the communities they serve through training that addresses head-on the growth in cybercrime that is targeting small enterprises.”
Broader Implications for the Channel and Enterprise Market
A Unified Enterprise Modernization Playbook
With its recent moves, Kyndryl showcases an evolution from being a traditional managed infrastructure services provider (a reputation inherited from its IBM roots) to becoming a next-generation strategic partner capable of guiding organizations through every phase of their digital transformation.This is not just marketing rhetoric. The Skytap rollout enables seamless hybrid cloud operations for legacy infrastructure. The Databricks partnership positions Kyndryl at the forefront of the burgeoning AI and data modernization market—a sector expected to be worth hundreds of billions in the next decade according to McKinsey and IDC projections. Finally, the Foundation’s initiatives ensure that Kyndryl remains relevant beyond boardrooms and server rooms, making material contributions to cyber safety and workforce diversity.
Strengths: Strategic Agility and Client-Centric Solutions
Among the most notable strengths evident in this series of announcements are:- Integration Rather Than Fragmentation: Kyndryl’s value lies in bridging the old and the new. By enabling legacy workloads to run natively on modern cloud infrastructure, and integrating data sources, the company is addressing the most persistent pain points of the world’s largest IT estates.
- Highly Targeted Alliances: By partnering with firms like Databricks and extending its relationship with Microsoft, Kyndryl aligns itself with market leaders that bring complementary technological strengths rather than competing for the same client budgets.
- Tangible Community Impact: The Foundation’s emphasis on cybersecurity as a public good, especially for charities and NFPs, sends a positive signal to both potential clients and the broader public—a differentiator in a market often criticized for short-term thinking.
Risks and Challenges: Execution, Technical Complexity, and Channel Competition
Despite the optimistic tone, several risks and competitive pressures should inform a cautious perspective:- Technical and Operational Complexity: Migrating and operating legacy workloads in public or hybrid cloud environments is rarely simple. While Skytap claims to streamline this process, every organization’s IT environment is unique, making “instant” modernization an attractive but sometimes elusive promise.
- Channel Partner Alignment: As Kyndryl scales these offerings globally, its ability to align with local partners—cloud vendors, consultants, and systems integrators—will be put to the test, especially in markets with entrenched incumbent providers.
- AI and Data Governance: The Databricks alliance positions Kyndryl at the intersection of analytics, AI, and governance. However, the regulatory landscape for AI is changing fast. Kyndryl’s clients will demand not only innovation, but also assurances of compliance, explainability, and ethical stewardship—areas where the industry still faces major gaps.
- Nonprofit Sector Resource Constraints: While philanthropic training programs are valuable, the downstream impact depends on organizations’ capacity to implement learnings and strengthen defenses over time. Without follow-up support or funding for implementation, the initial training risks becoming a one-off intervention rather than a sustainable solution.
The Path Forward: Consolidation and Expansion
Kyndryl’s recent announcements reveal a company in the midst of a rapid evolution, moving beyond the confines of legacy infrastructure management to occupy a more holistic role as a trusted modernization and innovation partner. The Skytap expansion, Databricks partnership, and commitment to cybersecurity workforce development coalesce into a distinct playbook that leverages Kyndryl’s heritage, while embracing new paradigms in enterprise technology and social responsibility.Looking forward, the company’s differentiation will likely hinge on its ability to scale these strategies while maintaining the promises made: seamless cloud migration without disruption; AI and analytics that drive business results, not just dashboards; and a measurable, positive impact on communities grappling with digital threat.
For the channel community, these developments are both opportunity and challenge. Kyndryl’s focus on co-investment, ecosystem partnerships, and shared outcomes creates new avenues for collaboration—but also raises the bar for channel partners in terms of technical expertise, service quality, and client impact.
In sum, Kyndryl’s latest moves represent more than incremental advances. They signal an ambitious, strategic vision where cutting-edge technology, practical modernization, and social good are deeply intertwined. The litmus test will be the extent to which this ambition translates into measurable business and community outcomes in the months and years to come—outcomes that industry stakeholders and clients alike will be watching closely.
Source: Channel Insider Kyndryl Makes a Series of Announcements Impacting the Channel
