Mainframe Modernization Generates Over $12 Billion in Savings for Businesses
Kyndryl, an IT infrastructure services provider, has unveiled the results of its first global survey and analysis on the current and future state of mainframe modernization for businesses.
The survey of 500 business and IT executives reveals that most organizations are taking a hybrid approach to mainframe modernization and collectively achieving $12.5 billion in cost savings.
In today’s competitive and rapidly changing business environment, companies are looking for ways to start or accelerate their mainframe modernization journey to increase efficiency, agility and innovation. According to Kyndryl’s survey, as companies seek to transform their mainframe environments:
- 95% of respondents are migrating at least some of their mainframe applications to the cloud or distributed platforms, averaging 37% of their workloads – only 1% of respondents plan to move all their workloads entirely to the cloud .
- 90% of respondents say the mainframe remains essential to their business operations due to its high levels of security, reliability and performance, while having the flexibility to move to cloud platforms for greater efficiency.
Companies looking to upgrade their critical operations approach modernization in three ways: by modernizing the mainframe, integrating with hyperscalers, or moving to the cloud. Almost all respondents use a combination of approaches, taking into account the capabilities of each platform and tailoring projects to their business and technical needs.
A key observation is that regardless of the mainframe modernization approach chosen, companies report a reduction in costs and an increase in profitability of 9 to 11 percent. The average annual savings per organization is $25 million, and collectively, respondents realize $12.5 billion in savings per year, showing that mainframe modernization generates a positive ROI. In addition to financial benefits, respondents say transformation fuels innovation by allowing them to benefit from increased scalability and faster time to market.
Kyndryl’s survey reveals that respondents share a common concern about security, regardless of the transformation path they choose. Security is the most important factor noted (49%) in defining a client’s transformation strategy. At the same time, it is one of the most crucial elements for the success of a mainframe modernization project and the most popular topic in training and development. Concerns about the decline of mainframe skills are also cited as a major challenge for more than half of the organizations surveyed, and this skills gap represents employment opportunities for emerging technical talent. In fact, 74% of those surveyed say they rely on external firms to support them in the transformation due to their skills challenges.
Petra Goude, Global Head of Core Enterprise and zCloud Practices at Kyndryl, said: “Our survey reveals that mainframes are increasingly an integral part of hybrid cloud environments and continue to drive business value. However, the lack of skilled workforce to support and secure these critical environments is a significant source of anxiety for many businesses.
“Finding a trusted advisor and integrator with deep expertise and experience is key to success, no matter where organizations are in their journey and how they want to implement their transformation. The survey shows that maintaining the status quo is not a path to modernization or growth.”
Kyndryl commissioned Coleman Parkes Research to survey 500 decision-makers, including CTOs/CIOs, CIOs and business leaders from companies across industries and government, of varying sizes, with varying levels of IT reliance. mainframe and at different stages of their modernization journey. .
To learn more about the insights collected on how respondents view mainframe transformation and application modernization, as well as the challenges, risks, and benefits related to their initiatives, visit: Kyndryl Mainframe Modernization Status Survey Report 2023.
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