What is mainframe modernization?

Approaches to modernization can vary widely in scale and scope, with some taking on a total overhaul of an existing system’s functionality and others taking a more focused approach. Today, most mainframe modernization is mainframe application modernization, which focuses on updating the code and supporting infrastructure of a particular mainframe application or applications. This approach can include adding or implementing

• Hybrid cloud integration—modernizing on-premises legacy mainframe applications to interact seamlessly with hybrid cloud architectures, services and resources
  
  
• DevOps integration—refactoring application code to ease DevOps adoption in new ecosystems, shorten application lifecycle management (ALM) timelines, leverage cloud-native development, automate cloud infrastructure and observability, and improve overall development agility
  
  
• AI decision-making—automating and enhancing an application’s predictive and decision-making capabilities by integrating artificial intelligence (AI) and machine learning capabilities into the application, its business logic and its data platform
  
  
• Infrastructure optimization—where possible, re-platforming or rehosting certain applications on cloud or other more cost-effective infrastructure while maintaining or improving performance.

It’s worth noting that as a method of modernization, mere code translation often fails to address the complexity of the problem modernization sets out to solve. Successful mainframe modernization projects concentrate not just on code but on system-level engineering concerns such as data architecture, runtime replacement and transaction processes.

Ultimately the right mainframe modernization solution is one that keeps an enterprise’s hardware and software competitive in a rapidly changing IT landscape, while retaining the transactional, security, resilience and performance characteristics of the mainframe computing platform. According to a recent report, organizations see substantial and increasing return on investment (ROI) from their mainframe modernization projects, ranging from 288% for app modernization on a mainframe to 362% for projects that move workloads from a mainframe onto other platforms.¹

Mainframes are computers with large amounts of memory and data processors that perform simple calculations and transactions in real time. Mainframes are critical to the core business processes of many enterprises including commercial databases, transaction servers, and business applications that depend on their security and resiliency.

Mainframes that were installed as little as 10 years ago can still pose a considerable risk to an organization on several fronts. First, inefficiencies from legacy technologies can increase operational costs and make businesses vulnerable to newer, more innovative competitors. Second, legacy applications created with old programming languages can pose performance problems and be difficult for younger coders who were trained on modern coding languages to solve

One example of this is in the code languages COBOL (Common Business Oriented Language) and Java—two of the more widely used coding languages for application development. Despite their popularity, COBOL and Java still have key differences that need to be considered for a mainframe modernization initiative to be effective. While Java is more intuitive for many programmers because of its similarities to C++, COBOL’s syntax is designed for business-oriented deployments and is considered more readable.

Here’s a closer look at how mainframe modernization works and why it’s become such a central part of any of digital transformation initiative.

The rise of artificial intelligence (AI), unstable geopolitical situations in Europe and the middle east have seen the business world rocked by a seemingly endless chain of disruptions, often linked to new technology. While it remains to be seen how these unprecedented changes will impact IT infrastructure over time, it’s a safe bet that digital innovation and the need for modernization will remain top priorities for business leaders in the near future.

Mainframes are, arguably, the area of IT infrastructure most vulnerable to change in an organization. The lifeblood of applications and data, mainframes are the beating heart of any enterprise in the tech space, so keeping them up-to-date and running smoothly is of utmost importance. For example, DevOps—the software development workflows enterprises rely on to speed the delivery of high-quality software and apps—relies heavily on the effectiveness of mainframe IT systems. But all mainframe modernization approaches aren’t created equal. Those that focus on translating outdated code bases rather than addressing underlying platform architecture problems created by legacy infrastructure aren’t as effective.

More than perhaps ever before, enterprises see the need to integrate and extend their mainframe capabilities to drive innovation and increase resiliency. Mainframe modernization strategies can help drive digital transformation and capture new business value. According to a recent IBV whitepaper commissioned by IBM, 45 of the top 50 banks, four of the top five airlines, seven of the top 10 global retailers, and 67 of the Fortune 100 companies leverage the mainframe as their core platform.

Here are five benefits organizations typically realize with a strong mainframe modernization approach.

While there are different approaches and strategies to mainframe modernization, at a fundamental level, they all involve the upgrading of existing IT systems and applications. Scope, scalability and other requirements can vary depending on business need, so it’s important for stakeholders to be in alignment on their expectations for a project, as well as its potential risks.

Any modernization initiative—regardless of scope—comes with certain risks. The complexity of upgrading technology that was installed 10, 20, even 30 years ago is simply too great to eliminate risk entirely. Here are some of the challenges a mainframe modernization project typically faces.

1. Skill gaps with existing employees: One of the most frequently cited reasons for not modernizing IT infrastructure is the need overhaul your work force along with the new technology you’re installing to ensure you have skilled workers who can operate and maintain it. Retraining existing employees on new IT systems and/or or hiring new ones who have already been trained on these systems can be expensive and disruptive.
   
   
2. Disruption of normal business processes: You wouldn’t be trying to modernize your mainframe if it wasn’t one of your most critical IT assets. By that same logic, shutting it down—even partially—to make much-needed upgrades can be expensive. Downtime and service interruptions can create poor customer experiences and cause users to look elsewhere.
   
   
3. Complexity of legacy systems: Systems that were installed a quarter of a century ago typically haven’t been sitting untouched for that long. In most cases, engineers have piece-mealed solutions together using newer tech to stop-gap larger problems without replacing equipment. This can result in a confusing blend of technologies, old and new, that can be difficult for engineers to upgrade without causing a disruption.
   
   
4. Maintaining compliance and protecting critical data: Data integrity and compliance capabilities are critical to most enterprises, especially ones in the financial services or healthcare industries where the information they’re charged with safeguarding is highly confidential. Companies undertaking a mainframe modernization initiative are especially vulnerable to cyberattacks and data breaches that can be costly in both financial and reputational terms.

While these risks can’t be eliminated altogether, these widely used approaches to mainframe modernization can lower them considerably while still allowing organizations to reach their modernization goals.

1. Mainframe migration to the cloud: One of the most common and effective mainframe modernization approaches involves moving critical IT systems and existing applications into a highly adaptive, resilient and flexible hybrid cloud environment. This is known as cloud migration. With cloud computing modernization solutions, rehosting increases agility and flexibility and significantly reduces the costs associated with deployment of a new modernized mainframe to a private or public cloud.
   
   
2. Code optimization: Optimizing old, inefficient code (also known as refactoring) is also a popular mainframe modernization approach. It involves the rewriting and restructuring of an existing codebase. Refactoring helps increase responsiveness and efficiency and reduce technical debt, or future expenses created by poor architectural decisions made in the present.
   
   
3. Pre-built solutions: A pre-built, off-the-shelf solution is simply a replacement part (or entire IT system) that’s been purchased to replace an older one. Pre-built solutions are among the simpler options available to businesses who want to modernize their mainframe environment but aren’t yet ready to invest in the resources and risks of a move to cloud or a code overhaul. In an off-the-shelf solution, older IT systems are simply replaced with something newer and more technologically advanced.
   
   
4. API modernization: APIs can be used to streamline the integration of older IT with newer, more technologically advanced systems. This approach deploys APIs as a bridge between older IT systems and newer applications that can help increase your capabilities without replacing your existing mainframe.