Mainframe modernization saves companies more than $12 billion

Kyndryl, an IT infrastructure services provider, announced the results of its first global study and analysis of the current and future state of mainframe modernization in enterprises.

A survey of 500 business and IT leaders found that most organizations are taking a hybrid approach to mainframe modernization, achieving total cost savings of $12.5 billion.

In today’s competitive and rapidly changing business environment, enterprises are looking for ways to initiate or accelerate mainframe modernization to drive greater efficiency, agility, and innovation. According to Kyndryl research, enterprises are looking to transform their mainframe environments.

• 95% of respondents have migrated at least some of their mainframe applications to the cloud or distributed platforms, with an average of 37% of their workloads migrated. Only 1% of respondents plan to fully move all workloads to the cloud.
• 90% of respondents say mainframes remain essential to business operations due to their high levels of security, reliability, and performance, while providing the flexibility to migrate to cloud platforms for greater efficiency. says.

Companies looking to modernize their mission-critical operations are doing so in three ways: modernizing on the mainframe, integrating with hyperscalers, or moving to the cloud. Almost all respondents use a combination of approaches, considering each platform’s capabilities and tailoring projects to business and technical needs.

A key observation is that regardless of the mainframe modernization approach chosen, companies report reduced costs and increased profitability by 9% to 11%. The average annual cost savings per organization was $25 million, with respondents collectively achieving $12.5 billion in annual savings, demonstrating that mainframe modernization provides a positive return on investment. Masu. In addition to the economic benefits, respondents say the transformation has increased scalability, reduced time to market, and spurred innovation.

Kyndryl’s research reveals that respondents have common concerns about security, no matter what path of change they choose. Security was cited as the most important factor when defining a customer’s transformation strategy (49%). At the same time, it is one of the most important factors for a successful mainframe modernization project and the most popular topic for training and upskilling. Concerns about declining mainframe skills were also cited as a major challenge for more than half of the organizations surveyed, and this skills gap represents a job opportunity with the growing technical workforce. In fact, 74% of respondents said they rely on external companies to support their transformation due to skills challenges.

Petra Goude, global practice leader for Core Enterprise and zCloud at Kyndryl, said: “Our research reveals that mainframes are increasingly becoming an integral part of hybrid cloud environments and continue to drive business value.” The lack of skilled labor is a source of great anxiety for many businesses.

“No matter what direction your organization is moving in or how you plan to implement change, finding trusted advisors and integrators with deep expertise and experience is key to success. Research shows that maintaining the status quo is not the path to modernization and growth.”

Kyndryl engages Coleman Parkes Research to research CTOs/CIOs, IT directors, We surveyed 500 decision makers, including business leaders. .

To learn more about how respondents view mainframe transformation and application modernization, as well as the insights we gathered about the challenges, risks, and benefits associated with their efforts, please visit: Kyndryl’s 2023 Mainframe Modernization Survey Report.

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