Kyndryl and Nova Intelligence Partner to Enhance SAP Transformation with AI

Thursday, Aug 7, 2025 8:37 pm ET1min read

Kyndryl has partnered with Nova Intelligence to enhance SAP Clean Core modernization efforts using AI-driven digital transformation projects. The collaboration aims to streamline and modernize existing SAP Cloud ERP systems efficiently and cost-effectively. Kyndryl's revenue has declined by 10.1% YoY, and the company faces competition from other major players in the software industry. The stock's P/E ratio is 23.92, near its 1-year low, indicating potential undervaluation.

Kyndryl, a leading provider of mission-critical enterprise technology services, has partnered with Nova Intelligence to enhance SAP Clean Core modernization efforts using AI-driven digital transformation projects. The collaboration aims to streamline and modernize existing SAP Cloud ERP systems efficiently and cost-effectively.

Under the partnership, Kyndryl will couple its SAP modernization and data transformation services with Nova Intelligence’s agentic AI solutions. This will support enterprise customers in migrating to SAP Cloud ERP and modernizing existing systems to align with SAP Clean Core principles. The collaboration will help customers achieve Clean Core compliance, reduce risk, and prepare for future SAP capabilities while maintaining business continuity [1][2][3][4].

Kyndryl’s revenue has declined by 10.1% year-over-year (YoY), and the company faces competition from other major players in the software industry. Despite this, the stock's price-to-earnings (P/E) ratio of 23.92 is near its one-year low, indicating potential undervaluation. The partnership with Nova Intelligence could provide a strategic advantage by helping Kyndryl better serve its customers and potentially improve its financial performance.

The collaboration builds on Kyndryl’s successful use of Nova Intelligence’s AI agents to modernize two of its mission-critical legacy SAP custom applications. This experience has demonstrated the technology’s effectiveness in reducing manual development work and transformation costs [3].

As customers are required to migrate from older SAP ECC systems to SAP Cloud ERP by the end of 2027, the timely collaboration between Kyndryl and Nova Intelligence is crucial. The partnership aims to enable customers to migrate their systems ahead of the deadline and support clean core compliance, ensuring they can fully leverage future iterations of SAP.

References:
[1] https://www.kyndryl.com/us/en/about-us/news/2025/08/next-gen-sap-innovation-nova-intelligence
[2] https://futurecio.tech/gulf-marine-taps-grow-with-sap-to-advance-digital-transformation/
[3] https://salestechstar.com/partner-management-channel-enablement/kyndryl-and-nova-intelligence-announce-strategic-collaboration-to-accelerate-sap-transformation-for-customers/
[4] https://www.prnewswire.com/news-releases/kyndryl-and-nova-intelligence-announce-strategic-collaboration-to-accelerate-sap-transformation-for-customers-302522156.html

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