Kyndryl, a leading provider of mission-critical enterprise technology services, today unveiled the results of its third annualState of Mainframe Modernization Survey,illustrating how enterprises are redefiningtherole of the mainframe in a rapidly evolving digital landscape. The study revealsthat organizations are embracing nimble modernization strategies, leveraging AI at scale, and doubling down on mainframe usage in hybrid IT environments—as they navigate skills shortages and regulatory pressures.
According to the survey of 500 business and IT leaders, modernization project costs havedecreasedwhile return on investment(ROI) has increased.Respondents now report between 288% to 362% ROI on their initiatives, depending on whether they modernize on the mainframe, integrate with cloud, or move workloads to other platforms.In addition,80% oforganizationshave shifted their mainframe modernization strategies in the past year to adapt to changing marketdynamics, geopolitical developments, new regulations andemerging technologies.
The survey also revealed thatAI has switched from a future consideration to a present-day business catalyst: Nearly 90% of organizations have implemented or plan to implement generative AI on the mainframe. Respondents expect to achieve substantial results from the use of AI and generative AI—collectively saving $13 billion and forecasting newrevenues of $20 billion over the next three years. AI is also helpingmitigate skills gaps across the workforce.More than half of organizations (56%) reported increased usage of the platformin the past yearas they discover new, high-value roles for it as part of a hybrid environment.
“The mainframe has become the AI-fueled catalyst of hybrid enterprise strategies, delivering billion-dollar returns while powering innovation for customers,” said Hassan Zamat, Global Practice Leader for Core Enterprise at Kyndryl. “Organizations are taking a much more pragmatic approach to modernization to drive better business outcomes and incorporate new technologies. Working with the right partnerscan help them build a resilient, secure and future-ready platform.”
Respondents also confirmed that modernization successincreasingly depends on a workforce skilled in both mainframe and emerging technologies. In fact, 70% of organizations are struggling to find the right multi-skilled talent needed, and 74% continue to rely on third-party providers to support their modernization efforts.Furthermore, 94% of respondents state that their modernization plans are highly influenced by regulatory compliance and that security remains a foundational concern in modernization decisions.