As organizations strive to stay ahead of the curve in today’s fast-paced digital landscape, mainframe application modernization has emerged as a critical component of any digital transformation strategy.

In this blog, we’ll discuss the example of a US bank which embarked on a journey to modernize its mainframe applications. This strategic project has helped it to transform into a more modern, flexible and agile business. In looking at the ways in which it approached the problem, you’ll gain insights into the opportunities and challenges  presented by mainframe modernization and some of the strategies that can help your organization achieve success.

Mainframes continue to play a vital role in many businesses’ core operations. According to new research from IBM’s Institute for Business Value, a significant 7 out of 10 IT executives believe that mainframe-based applications are crucial to their business and technology strategies. However, the rapid pace of digital transformation is forcing companies to modernize across their IT landscape, and as the pace of innovation continuously accelerates, organizations must react and adapt to these changes or risk being left behind. Mainframe detractors often point their finger at the technology as being outdated when in fact it’s the applications that require modernization, not the platform.  

Mainframe application modernization refers to the process of updating, refactoring and transforming applications to align with modern computing architectures, technologies and business requirements. It is a complex task, and customers face multiple challenges as they seek to bring legacy applications into the modern age. Many applications were designed and implemented decades ago and the programmers that worked on them are retiring and leaving the workforce, leading to a growing skills gap. In addition, much of the development on mainframe systems has been through a traditional waterfall approach that increases the time it takes to make changes. Companies today need to move fast and respond to the market.   

Agility

Moving from a traditional waterfall development approach where applications are designed, built and tested as a monolith to an agile methodology of continuous integration and continuous deployment (CI/CD), businesses can quickly react to changing needs. Tools like Azure DevOps can be used to help coordinate efforts and releases across Mainframe and Cloud Native development teams.  

Skills

As COBOL and Assembler programmers retire, companies face a growing risk: a shortage of skilled resources to maintain and update their legacy applications. To mitigate this risk, modernizing these applications is essential. One effective approach is to use tools that analyze the code, document it and convert it to modern languages like Java. By doing so, companies can make their legacy applications easier to understand and maintain. 

Costs

Mainframes are perceived as being inherently expensive, consolidation of expensive ISV software and/or replacing this with IBM Native software or open-source software can lead to savings. Reductions in CPU usage can also be achieved by converting COBOL to Java and running it on Integrated Facility for Linux (IFL) or by optimizing COBOL code for performance. 

Complexity

Mainframes often host critical and regulated business applications that are deeply integrated with existing business processes, making it complex, time-consuming and risky to rewrite and migrate them to a different platform. A less risky approach may be to keep these applications where they are and to provide an interface (API) that allows modern applications running in Azure to access data and execute specific functions securely and easily. 

A better approach 

When it comes to modernizing existing applications, a strategic “best fit” approach is necessary, rather than considering it an either/or decision. Mainframes often host critical and regulated business applications that are deeply integrated with existing business processes, making it complex, time-consuming and risky to rewrite and migrate them to a different platform. A more cost-effective and less risky approach is to keep these applications where they are and provide an interface (API) that allows modern applications to access data and execute specific functions securely and easily. This approach allows the business to focus investments where it can significantly reduce time to market. 

It is true that some applications—particularly consumer-facing mobile and web applications—would be better off migrated into the cloud. Here the benefit is that the mainframe remains in place, dedicated to hosting the most complex, highly regulated and business-critical applications that benefit from the mainframe’s performance, reliability and stability—enabling organizations to make the most from their investment. 

Where data center exit is not the primary business goal, a hybrid or better together model may be appropriate in which the power of the mainframe is used to enhance the features and capabilities of applications running in the cloud—and data and information from applications running in the cloud used to enhance insights and information is hosted on the mainframe. A truly virtuous circle can only come about if the mainframe is treated as a strategic asset rather than simply viewed as an expensive “legacy” platform. 

Next steps 

IBM Consulting® can help you design a hybrid cloud strategy with a single integrated operating model that includes common agile practices and interoperability of applications between IBM Z®, Microsoft Azure and mainframes. IBM places applications and data on the right platform and helps keep them secured, encrypted and resilient. It’s an agile, seamlessly integrated hybrid cloud platform with IBM Z at the core.  

Watch this video to see how IBM Consulting helps to accelerate mainframe application modernization, develop Azure applications and drive IT automation with IBM Z and Azure. The joint approach allows businesses to innovate faster, maximize investment value and reduce the need for specialized skills.