Cognizant Launches Global FinOps Center of Excellence, New Solutions Built with IBM Technology to Tackle Enterprise Modernization Challenges

Rhea-AI Summary

Cognizant (NASDAQ: CTSH) and IBM have announced the launch of a new FinOps Center of Excellence (CoE), combining IBM's FinOps software with Cognizant's cloud and developer platforms. The collaboration includes extensions of Cognizant's Skygrade™ and Flowsource™ platforms, integrated with IBM's Apptio, Turbonomic, watsonx.governance, and watsonx Code Assistant for Z. The initiative focuses on three key areas: mainframe modernization, FinOps for cloud cost management, and AI governance, aiming to help enterprises manage complexity, modernize legacy applications, and implement AI solutions at scale.

Positive

• Strategic partnership with IBM enhancing technological capabilities
• Launch of new FinOps Center of Excellence expanding service offerings
• Integration of platforms with IBM's advanced tools strengthening market position

Negative

• None.

Insights

Technology Strategy Analyst

This strategic partnership represents a significant advancement in enterprise IT solutions, combining Cognizant's engineering expertise with IBM's advanced technology stack. The launch of the FinOps CoE addresses critical market demands for cost optimization and AI governance - two major pain points for large enterprises. Key value drivers include:

• Integration with IBM's watsonx suite provides enterprise-grade AI governance capabilities, essential for regulated industries
• Mainframe modernization solutions could accelerate digital transformation for legacy systems
• Multi-cloud cost optimization tools position Cognizant to capture growing FinOps market demand

While this partnership enhances Cognizant's competitive position in the enterprise IT services market, revenue impact will likely materialize gradually as these solutions gain market traction. The focus on cost optimization and governance aligns well with current enterprise priorities amid economic uncertainty.

Collaboration debuts solutions that aim to enable enterprises to manage complexity, modernize legacy applications and innovate with enterprise-scale AI.

TEANECK, N.J.  , Nov. 6, 2024 /PRNewswire/ -- Cognizant (NASDAQ: CTSH) and IBM announced the debut of a new FinOps¹ Center of Excellence (CoE), built on IBM's leading FinOps software and Cognizant's cloud and developer platforms. The global innovation center harnesses the strengths of Cognizant's industry and technology expertise, combined with IBM solutions, to help global clients address challenges, including escalating costs, around AI readiness, cloud governance and architecture modernization.

Alongside the CoE announcement, Cognizant launched extensions of its Cognizant® Skygrade™ and Flowsource™ platforms that are designed to integrate with IBM Apptio, Turbonomic, watsonx.governance and watsonx Code Assistant for Z. The solutions bring together Cognizant's deep engineering capabilities with IBM's powerful tools to help enterprise clients transition to modern architectures and streamline cloud management operations.

"Modern businesses face significant challenges in managing complexity, operational risks, and cost overhead due to the pervasive impact of technical debt and aging applications," said Prasad Sankaran, EVP and Global Head, Software and Platform Engineering, Cognizant. "Cognizant and IBM are committed to offering clients the ability to effectively realize cloud and AI-native solutions at enterprise scale."

Cognizant and IBM aim to help clients operate more efficiently and innovate quickly and responsibly by jointly focusing on the following areas:

• Mainframe Modernization: Modernizing mainframe applications designed to increase agility and innovate faster through code modernization leveraging watsonx Code Assistant for Z, and supporting adoption of a hybrid cloud strategy to maximize the value of mainframe investments.
• FinOps: Aiming to provide visibility and accountability over cloud costs, optimize usage, and implement real-time production adjustments to eliminate waste in multi-cloud environments.
• AI Governance: Aiming to responsibly implement and drive AI governance across the enterprise, leveraging watsonx.governance to help ensure that AI systems are fair and transparent, with tools for AI quality and compliance capabilities integrated into development and operations processes.

"Optimizing cloud, AI and mainframe solutions are priorities for C-suite leaders the world over," said Stephen Smith, General Manager, IBM Service Partner Ecosystem. "Exploiting automation and AI to reduce manual operations and accelerate productivity will help clients to realize more value from their hybrid cloud environments, reduce technology costs and the barriers to innovation."

For more information on Cognizant's partnership with IBM, visit here.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

For more information, contact:

U.S. Name Ben Gorelick Email benjamin.gorelick@cognizant.com		Europe / APAC Name Christina Schneider Email christina.schneider@cognizant.com		India Name Rashmi Vasisht Email rashmi.vasisht@cognizant.com

¹ FinOps is a management practice that helps organizations improve the financial performance of their cloud computing infrastructure. The term is a combination of the words "finance" and "DevOps".

 

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SOURCE Cognizant Technology Solutions

FAQ

What is the purpose of Cognizant's new FinOps Center of Excellence with IBM?

The FinOps Center of Excellence aims to help global clients address challenges in AI readiness, cloud governance, and architecture modernization, while managing escalating costs through the combination of IBM's FinOps software and Cognizant's cloud platforms.

What platforms has Cognizant (CTSH) integrated with IBM technology?

Cognizant has integrated its Skygrade™ and Flowsource™ platforms with IBM's Apptio, Turbonomic, watsonx.governance, and watsonx Code Assistant for Z.

What are the main focus areas of the Cognizant-IBM collaboration?

The collaboration focuses on three main areas: mainframe modernization, FinOps for cloud cost management and optimization, and AI governance for responsible AI implementation across enterprises.