Increasing Mainframe Investment Amid Cloud Growth
Recent research has revealed a surprising trend among companies that utilize mainframes as part of their IT infrastructure. These organizations are planning to boost their spending on mainframes, even while they continue to embrace public cloud solutions. A comprehensive study conducted by Information Services Group (ISG) sheds light on this evolving landscape.
Mixed Priorities for Enterprises
The ISG Market Lens™ Mainframe and Mainframe as a Service (MFaaS) Study found that a significant proportion of large enterprises are expecting changes in their mainframe operations. Around one-third of those surveyed plan to upgrade their existing mainframe processors or storage capabilities. Moreover, 40% of respondents are looking to increase their capacity for traditional mainframe systems, while approximately one in six are considering the purchase of a new mainframe within the next few years.
Strategic Balancing Act
As Alex Bakker, a distinguished analyst at ISG, points out, mainframes continue to hold a crucial position in large enterprises. Companies find themselves navigating a challenging balancing act between maintaining their mainframe systems, adopting MFaaS options, and leveraging public cloud services. Despite the rapid growth of public cloud adoption, Bakker emphasizes that it is unlikely to fully replace the need for mainframes in enterprise settings.
Persistent Demand for Mainframe Resources
The ISG study, which surveyed 200 top executives responsible for mainframe strategies across the Americas and Europe, indicates that enterprises with the heaviest IT workloads are projected to face the greatest increases in demand across all platforms. Interestingly, firms characterized by a high reliance on traditional mainframe systems are more likely to shift towards MFaaS solutions to meet their evolving operational needs.
Navigating Legacy Challenges
Another intriguing insight from the research highlights why demand for mainframe capabilities remains robust. Enterprises are often hindered by the challenges inherent in decommissioning outdated legacy systems. As the landscape evolves, conflicting priorities such as the emergence of AI, data security, and the need for system resilience become evident. According to Michael Dornan, a principal analyst at ISG, this dynamic pressure underscores the importance of modernizing these outdated systems while managing cost optimization concerns.
Cloud Migration and Cost Concerns
In recent years, many firms have made notable strides in cloud migration. Approximately 60% of those surveyed have moved some applications to the cloud, and over 40% have migrated to MFaaS solutions. This trend highlights the appeal of MFaaS as a cost-effective option that combines the agility of public cloud infrastructure with fewer risks related to migration and security issues. Additionally, the rising need for mainframe skills poses a challenge, as industry veterans retire and younger professionals often lack proficiency in legacy programming languages.
Pressures on IT Departments
As organizations endeavor to enhance their technological capabilities, priorities are shifting towards key areas such as cost optimization, retiring legacy systems, integrating AI capabilities, and enhancing cybersecurity measures. However, only information security appears to be performing satisfactorily, with 54% of respondents affirming that their security measures outshine those of their peers. Comparatively, cost reduction efforts, AI integration, and legacy system retirement are perceived as lagging in effectiveness.
The Future of Mainframe Modernization
The outlook for mainframe investment suggests a robust future, driven by a combination of rising application storage demands and the constant pressure on IT departments to reduce costs. Nearly all participants indicated that they are engaging managed service providers to facilitate the modernization and ongoing management of their mainframe systems or MFaaS services.
Conclusion: A Call for Modernization Support
As companies contend with the challenges linked to mainframe investments, there is a growing expectation for service providers to deliver not only cost optimization solutions but also to maximize the benefits derived from legacy system integration with modern operations, including cloud technology. The role of external expertise will likely become increasingly critical in helping organizations unlock the full potential of their mainframe investments.
Frequently Asked Questions
What is the main finding of the ISG study?
The study indicates that companies using mainframes plan to increase their mainframe spending even as they adopt more public cloud solutions.
Why are enterprises increasing spending on mainframes?
Many organizations are unable to decommission legacy systems due to conflicting priorities like AI adoption and security needs, driving the demand for mainframe resources.
What challenges do companies face with mainframe modernization?
Accessing skilled talent is increasingly difficult as industry veterans retire and new employees often lack knowledge of legacy programming languages.
What areas are enterprises focusing on for improvement?
Enterprises are prioritizing cost optimization, legacy system retirement, AI capabilities, and information security, although security appears to be performing best.
How do managed service providers fit into mainframe strategy?
Nearly all respondents are utilizing managed service providers to aid with mainframe modernization and operations, highlighting the need for external support in this area.
