New IBV study: AI drives mainframe innovation

To better understand how IT leaders are leveraging mainframes today and envisioning their future in the era of AI and hybrid cloud, the IBM Institute for Business Value, (IBV) in collaboration with Oxford Economics, conducted a survey of 2,551 global IT executives. The findings show the mainframe is already playing a pivotal role in supporting AI innovation, hybrid cloud strategies, and acceleration of digital transformation. With unmatched security and processing capabilities, the mainframe powers 70% of global transactions, on a value basis.

Mainframes have proven their vitality through their ability to process vast amounts of data quickly, reliably and securely, and they will be key to unlocking the full potential of data-driven innovation.

The study shows that 78% of IT executives surveyed said their organizations are either piloting projects or operationalizing initiatives that incorporate AI capabilities into mainframe applications and transactions. The study found that organizations view the mainframe as an invaluable platform for deploying enterprise AI for a wide array of functions including driving innovation, bolstering cybersecurity, streamlining operations, and modernizing applications. For example:

• Propelling innovation – 79% of respondents agree that the mainframe is essential for enabling AI-driven innovation and value creation. By applying AI directly to transactional workloads on the mainframe, businesses can extract new insights and enhance workforce productivity. This maximizes the value of their core systems and drives meaningful business outcomes.

• Boosting security – In terms of security, 90% of surveyed executives indicated their organizations are piloting or implementing AI-powered cybersecurity projects; with 82% of those surveyed citing the importance of the mainframe for monitoring, analyzing, and responding to cyber threats, a system already known for its security prowess.

• Modernizing system management – 74% of respondents said that they are integrating AI into mainframe operations to enhance system management and maintenance. Meanwhile, 61% of executives said using generative AI (gen AI) for application modernization efforts on mainframes is important to their organization. Gen AI-driven application modernization tools are revolutionizing mainframe modernization strategies, accelerating time to value, and closing mainframe skills gaps by enabling developers to modernize or build applications faster and more efficiently.

Mainframes also play a vital role in successful hybrid cloud strategies, enabling organizations to deploy application workloads in the most suitable computing environments. Critical workloads, such as financial transactions, healthcare records, and government services, demand advanced security, reliability, and scalability. By using the mainframe for these workloads, organizations can tap into its optimized architecture for unparalleled performance and efficiency, minimizing costs and risks across their IT ecosystem.

This approach has been proven to deliver significant returns on investment, with hybrid-by-design companies achieving more than 3x higher returns from their digital transformation efforts. However, to fully realize these benefits, organizations must maintain mainframe systems to ensure currency, modernize mainframe applications and integrate them with distributed data, applications, clouds and modern development practices.

As organizations advance in their digital transformation journeys, they must leverage their existing investments in mainframes to unlock the full potential of their data with hybrid cloud and AI technologies.

IT leaders looking to revitalize their mainframe strategies should consider a few critical actions now:

To establish a solid IT foundation, organizations should commit to a hybrid-by-design strategy, modernize mainframe applications, and develop a clear integration and data-sharing strategy. This involves optimizing business value across the technology estate, creating an application modernization strategy aligned to business objectives, and prioritizing integration between mainframe and other technologies for seamless data exchange and API connectivity. By doing so, organizations can improve overall competitiveness, reduce costs, and enhance their ability to respond to changing business requirements.

Organizations should leverage AI to empower DevOps teams, enhance mainframe operations, and infuse AI into business transactions. This can be achieved by equipping developers with gen AI-assisted tools that accelerate application discovery, analysis, and modernization; improving operational functions with smart aids and next-generation chatbot assistants; and leveraging AI for in-transaction insights to enhance business use cases. By embracing AI innovation, organizations can streamline modernization, improve operational efficiency, and drive business success in a hybrid cloud and AI-driven world.

Organizations should leverage today’s mainframe capabilities, cultivate a diverse and skilled mainframe workforce, and upskill mainframe professionals with AI-tooling and collaborative initiatives. This involves leveraging new mainframe capabilities, such as advanced encryption and authentication, and advanced processor chips and specialized AI accelerators; addressing skills gaps through targeted skilling initiatives and mentorship programs; and empowering mainframe professionals with AI-tooling, assistants and collaborative initiatives like the Mainframe Skills Council.

As the era of hybrid cloud and AI unfolds, the mainframe’s staying power is more evident than ever. Its role as a strategic asset in helping ensure security, data privacy, and operational efficiency makes it indispensable for organizations striving to remain competitive. By embracing modernization strategies that leverage the mainframe’s strengths, organizations can accelerate their digital transformation journeys and unlock new opportunities for growth and innovation.