Kyndryl, a provider of mission-critical enterprise technology services, has unveiled the results of its third annual State of Mainframe Modernisation Survey, illustrating how enterprises are redefining the role of the mainframe in a rapidly evolving digital landscape. The study reveals that organisations are embracing nimble modernisation 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, modernisation project costs have decreased while return on investment (ROI) has increased. Respondents now report between 288 per cent to 362 per cent ROI on their initiatives, depending on whether they modernise on the mainframe, integrate with cloud, or move workloads to other platforms. In addition, 80 per cent of organisations have shifted their mainframe modernisation strategies in the past year to adapt to changing market dynamics, geopolitical developments, new regulations and emerging technologies.

The survey also revealed that AI has switched from a future consideration to a present-day business catalyst: Nearly 90 per cent of organisations 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 (€11.07bn) and forecasting new revenues of $20 billion over the next three years. AI is also helping mitigate skills gaps across the workforce. More than half of organisations (56 per cent) reported increased usage of the platform in the past year as 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. “Organisations are taking a much more pragmatic approach to modernisation to drive better business outcomes and incorporate new technologies. Working with the right partners can help them build a resilient, secure and future-ready platform.”

Respondents also confirmed that modernisation success increasingly depends on a workforce skilled in both mainframe and emerging technologies. In fact, 70 per cent of organisations are struggling to find the right multi-skilled talent needed, and 74 per cent continue to rely on third-party providers to support their modernisation efforts. Furthermore, 94 per cent of respondents state that their modernisation plans are highly influenced by regulatory compliance and that security remains a foundational concern in modernisation decisions.

The survey shows that, as enterprises work to adapt to the challenges, the mainframe continues to serve as the backbone of their most vital technological capabilities.

Other posts by :

1. Ghana makes MultiChoice fee decision
2. SES announces €0.25c dividend
3. Russia “blinding and destroying” German satellites
4. Bank: AST, Starlink, Kuiper targeting $200bn market
5. Rivada: Is no news good news?
6. SES celebrates Intelsat acquisition
7. Pakistan halts broadband direct-from satellite
8. India stymies Starlink launch
9. Starlink, AST SpaceMobile race for cellular consumers

Categories: AI, Articles, Research

Tags: AI, Kyndryl, roi