Kyndryl Modernizes the Virginia Department of Motor Vehicles' IT Systems to Transform the Customer Experience

Rhea-AI Summary

Kyndryl (NYSE: KD) has partnered with the Virginia Department of Motor Vehicles (DMV) to modernize its IT infrastructure and enhance customer experience. The project involves replacing the existing Citizen Services Solution with a cloud-native system called MAX, which will be deployed on Microsoft Azure.

The new system will handle over 200,000 daily transactions and will be used across DMV headquarters, customer service centers, and call centers throughout Virginia. MAX, originally developed in Arizona, will improve transaction processing efficiency, enhance security measures, and create a more streamlined experience for Virginia residents.

The modernization initiative will migrate critical applications from mainframe to cloud infrastructure, focusing on three key areas: improving customer experience through efficient processing, enhancing security to meet federal and state standards, and driving innovation through a more agile cloud platform.

Positive

• Modernization will improve processing efficiency for over 200,000 daily transactions
• Cloud migration from mainframe systems will reduce operational costs
• Enhanced security measures to protect sensitive customer data
• Potential for continuous innovation and service improvements through cloud platform
• Inter-jurisdictional system sharing could lead to additional revenue opportunities

Negative

• Complex migration process from mainframe to cloud could pose operational risks
• Significant investment in new technology infrastructure required
• Temporary service disruptions possible during system transition

Insights

Government Technology Transformation Expert

Kyndryl's Virginia DMV modernization represents a significant state contract that demonstrates their public sector capabilities and cloud migration expertise.

This contract with Virginia DMV represents a meaningful win for Kyndryl in the public sector technology transformation space. The migration from legacy mainframe systems to a cloud-native architecture on Microsoft Azure involves supporting over 200,000 daily transactions - a substantial workload that validates Kyndryl's enterprise-scale capabilities.

What's particularly strategic about this implementation is that Kyndryl is deploying the MAX system, which was originally developed in Arizona and is available to other jurisdictions through intergovernmental agreements. This creates a potential pathway for Kyndryl to secure similar contracts across other state DMV operations - essentially positioning them to replicate this solution across multiple government clients.

The contract scope includes critical infrastructure that will be used by both citizens and DMV employees throughout Virginia, including headquarters, customer service centers, and call centers. It will also interface with agencies across Virginia and nationwide, demonstrating the complexity and integrative nature of the implementation.

From a technical standpoint, this project showcases Kyndryl's capabilities in mainframe-to-cloud migration, a specialized expertise that remains in high demand as government agencies nationwide work to modernize legacy infrastructure. The emphasis on security compliance with federal and state standards further positions Kyndryl as a trusted partner for sensitive government workloads.

This implementation aligns with growing government investments in digital transformation initiatives aimed at improving citizen services while reducing operational costs - a market segment with considerable growth potential as more agencies seek to modernize aging systems.

NEW YORK, May 28, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced that it is working with the Virginia Department of Motor Vehicles (DMV) to modernize the customer experience. The initiative aims to speed up and improve the processing of over 200,000 transactions daily.

The Virginia DMV has engaged Kyndryl to replace its Citizen Services Solution (CSS) with a cloud-native architecture to power its vehicle, driver and business applications. The new system, called MAX, was developed in the State of Arizona and is available to other jurisdictions through an intergovernmental agreement.

The project will migrate and update critical applications from a mainframe system to a more modern and flexible cloud infrastructure on Microsoft Azure. The MAX system, implemented by Kyndryl, will be used by internet users and DMV employees throughout the Commonwealth of Virginia at DMV headquarters, customer service centers and call centers, and will interface with other agencies throughout Virginia and across the nation.

"The DMV technology transformation has been years in the making," said Virginia Secretary of Transportation W. Sheppard Miller III. "With Governor Glenn Youngkin's commitment to a best-in-class DMV, we now have a winning plan and a winning partner in Kyndryl, and the citizens of Virginia will be the real winners."

"As the Commonwealth agency with the most direct interaction with Virginians, it is our responsibility to continually enhance the services we provide. The MAX system is not only transforming our operations to meet today's demands, but we are also setting the stage for a more efficient, secure and customer-focused future," said Gerald Lackey, Commissioner of the Virginia DMV. "This modernization will ensure that we are better equipped to support daily transactions, while improving the overall experience for our customers."

James Rutledge, President, Kyndryl U.S., added, "This modernization underscores Virginia's focus on delivering streamlined, technology-driven services that reduce costs and improve outcomes. By leveraging innovative technology, we are excited to help the Virginia DMV team enhance efficiency, security and accessibility while providing a better experience for residents and maximizing the impact of public resources." 

Kyndryl's work to modernize the Virginia DMV will:

• Improve the Customer Experience: Creating an enhanced customer-centric system, facilitating more efficient and secure processing of driver and vehicle transactions for customers while enabling enhanced data validation for the DMV.
• Enhance Security: Introducing industry-leading technology to meet federal and state security standards and protect sensitive customer data.
• Drive Innovation: Leveraging a more powerful cloud environment, Virginia DMV will have an agile platform for continual innovations and better services for residents and DMV partners.

About Kyndryl
Kyndryl is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex 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

FAQ

What is Kyndryl's role in the Virginia DMV modernization project?

Kyndryl is implementing the MAX system, migrating critical applications from mainframe to Microsoft Azure cloud infrastructure, and modernizing the DMV's customer service capabilities to handle over 200,000 daily transactions.

How will the MAX system benefit Virginia DMV customers?

MAX will provide more efficient and secure processing of driver and vehicle transactions, enhanced data validation, and an improved overall customer experience through a modernized cloud-based platform.

What security improvements does Kyndryl's DMV modernization project include?

The project introduces industry-leading technology to meet federal and state security standards and enhance protection of sensitive customer data.

Where was the MAX system originally developed and how is it being implemented?

MAX was developed in Arizona and is being implemented in Virginia through an intergovernmental agreement, allowing other jurisdictions to adopt the system.

What are the main technological changes in the Virginia DMV modernization?

The project involves migrating from mainframe systems to a cloud-native architecture on Microsoft Azure, enabling more flexible and efficient processing of vehicle, driver, and business applications.