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Kyndryl's Mainframe Modernization Survey Findings

In a rapidly evolving digital landscape, Kyndryl, a premier provider of enterprise technology services, has revealed compelling insights through its third annual State of Mainframe Modernization Survey. This comprehensive survey targeted 500 business and IT leaders, uncovering not only the financial benefits but also strategic shifts in how organizations are leveraging the mainframe in conjunction with emerging technologies.

Key Findings and ROI Insights

The survey highlights a significant change in the cost and return on investment (ROI) associated with mainframe modernization projects. Organizations now report an astonishing ROI ranging from 288% to 362%. This variation largely depends on whether enterprises choose to modernize directly on the mainframe, integrate cloud solutions, or migrate workloads to alternate platforms. Over 80% of the surveyed organizations have modified their mainframe modernization strategies within the past year, a testament to their adaptability in the face of market dynamics, geopolitical events, and regulatory changes.

One of the standout revelations from the report is the shifting perception of artificial intelligence (AI) from a future concept to a present-day business driver. Nearly 90% of respondents have either integrated or plan to use generative AI on their mainframe systems, predicting total savings of $13 billion and new revenue opportunities amounting to $20 billion over the next three years. This emphasis on AI not only highlights its potential for enhancing operational efficiency, but also addresses critical skills shortages across the workforce. More than half of the organizations (56%) reported an increased reliance on mainframe technology as businesses discover new, high-value roles within their hybrid environments.

The Role of Mainframe in Hybrid IT Strategies

Kyndryl's Global Practice Leader for Core Enterprise, Hassan Zamat, emphasized that the mainframe has become the linchpin in hybrid enterprise strategies, driving substantial returns while fostering innovation. As organizations embrace pragmatic modernization approaches, they are significantly enhancing their business outcomes and integrating advanced technologies. Collaborating with the right partners is essential for building resilient platforms capable of supporting future demands.

The challenge remains for companies seeking to attract the necessary talent adept in both mainframe and emerging technologies. An alarming 70% of organizations struggle to identify and retain personnel with such skill sets. Additionally, 74% continue to involve third-party service providers to bolster their modernization initiatives. Regulatory compliance is another critical factor, with 94% stating that it heavily influences their modernization strategies. Security, an ever-present concern, remains a cornerstone of their decision-making process.

Conclusions

As enterprises navigate the complexities of modernization, it is clear that the mainframe serves as the backbone of essential technological capabilities. Kyndryl's survey sheds light on the evolving landscape of mainframe modernization, revealing not just the challenges, but also the opportunities for businesses to innovate and thrive in a digitally-driven world. For those interested in a deeper understanding of the challenges, risks, and advantages associated with mainframe modernization, the 2025 State of Mainframe Modernization Survey Report from Kyndryl is an invaluable resource.

For further details on Kyndryl and their comprehensive services, visit www.kyndryl.com.