Enterprise firms are redefining the role of the mainframe with ‘nimble’ modernisation strategies that are reaping substantial benefits, according to new research from Kyndryl.

The tech service provider’s latest State of Mainframe Modernization Survey found firms are now seeing ROI gains ranging between 288% for those modernising applications on the mainframe, to a staggering 362% for those moving workloads from the mainframe to other platforms.  

This year, Kyndryl found that more companies are modernising workloads on the mainframe or integrating them with the cloud, rather than moving off the platform altogether, with 56% of firms seeing increases in their use of the mainframe.

Polling 500 business and IT leaders, the report found that 80% of organisations have shifted their mainframe strategies over the past year to take advantage of changing market dynamics, geopolitical developments, new regulations and emerging technologies.

AI, for instance, has switched from a future consideration to a ‘present-day business catalyst’, with its deployment on the mainframe starting to pay off. 

Nearly 90% of firms have implemented or plan to implement AI and genAI on the mainframe, with expectations of substantial results, with estimates of collective savings of $13 billion (£9.6bn) and new revenues of $20 billion (£14.8bn) over the next three years.

Kyndryl also found that AI is helping to mitigate skills gaps across the workforce. More than half of organisations (56%) reported increased usage of the platform in the past year as they discovered new, high-value roles for the technology 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 and future-ready platform.”

However, while this is plugging some skills gaps, plenty remain. Kyndryl’s survey found that 70% of firms have had difficulty in finding the right talent to operate and modernise mainframes increasingly operated in cloud environments, with nearly three-quarters (74%) forced to rely on third-party assistance.

According to the research, businesses are suffering from three key challenges, namely that newcomers do not have mainframe skills (46%), existing employees don’t want to learn new mainframe skills (42%), and experienced staff are retiring and taking mainframe skills with them when they leave (39%).

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While firms are trying to plan ahead, for example, with the introduction of upskilling strategies and ramping up automation, the lack of talent is having an impact, with 35% of those working on AI mainframe initiatives saying that the skills gap is hindering their progress right now. 

However, despite desperately searching for talent capable of modernising mainframes, the majority of firms are reporting a decline in the platform’s importance.

Kyndryl found that organisations considering the mainframe vital to their business has fallen by 11% since last year, although those same firms also reported an 8% increase in the number of workloads they’re keeping on the mainframe, with 95% saying their mainframe usage has either increased or stayed the same over the last twelve months.

The data paints a confusing, contradictory picture, but one that speaks to the fragmentation of IT environments in an increasingly hybrid world, with the mainframe continuing to serve as the backbone of technological capability, even as firms look for more agile options.