Kyndryl’s recent report on the state of mainframe modernization reveals that organizations can achieve up to a 225% return on investment from modernization projects. Unfortunately, many companies face challenges due to a lack of necessary skills.
The survey, which included responses from 500 business and IT leaders in mid-sized and large organizations, indicated that transitioning away from mainframes resulted in a 12% profit increase. Conversely, modernizing mainframe systems contributed to a 9% profit growth, while integrating mainframes with other enterprise systems led to a 10% increase in profits.
Petra Goude, global practice leader for core enterprise and zCloud at Kyndryl, noted, “Mainframes remain crucial in the hybrid landscape and are adapting to meet new demands, with AI and security playing increasingly significant roles in modernization strategies.”
The survey revealed that 86% of respondents are rapidly incorporating AI and generative AI (GenAI) to expedite their mainframe modernization efforts. One-third of those surveyed perceive the platform as a foundation for running AI-driven workloads, and nearly half plan to leverage GenAI to transform critical mainframe data into actionable insights.
In terms of AI utilization within mainframe computing, 41% of respondents identified potential for GenAI to assist in creating faster, more repeatable operational processes that are less susceptible to human error. Employing AI to enhance mainframe operations could help IT decision-makers address the ongoing skills shortage that hinders modernization efforts. In fact, 18% of those involved in mainframe modernization projects that require integration reported that a lack of expertise has been a primary obstacle to success. Furthermore, 28% acknowledged their organizations do not possess the necessary skills for effective mainframe modernization.
The survey also highlighted a significant skills gap among new entrants to the workforce, with 53% lacking mainframe expertise. Additionally, nearly half of the organizations surveyed (49%) reported that staff with essential mainframe skills are retiring, resulting in a diminished capacity to manage and maintain these systems and support modernization efforts.
Kyndryl suggests that GenAI could help alleviate the skills shortage by enabling developers to modernize and refactor legacy code, as well as identify dependencies among code elements and applications. By analyzing existing code, GenAI can even aid in generating technical documentation.
However, the findings also pointed out that 43% of surveyed individuals do not have the skills to utilize AI and GenAI effectively. A US retailer quoted in the report expressed concern over a deficit in the skillset required for navigating and implementing complex technologies, emphasizing that finding individuals proficient in both mainframe systems and advanced AI development is a significant challenge.