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. But the the most common mainframe modernization approach is mainframe application modernization, which focuses on updating one or more mainframe applications. In fact, the terms mainframe modernization and mainframe application modernization are often used interchangeably.

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 only on code, but on system-level engineering concerns such as data architecture, runtime replacement and transaction processes.

Ultimately the right mainframe modernization solution for an enterprise is one that keeps an enterprise’s mission-critical systems competitive in a rapidly changing IT landscape, while continuing to leverage the transactional, security, resilience and performance advantages 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

For many organizations, mainframe applications are the beating heart of their enterprise IT. They drive core business processes—such as e-commerce, transaction processing, automated decision-making, fraud detection and highly regulated workloads—that rely on the mainframe platform’s superior transaction processing, security and resiliency.

Not surprisingly, today enterprises see less opportunity in remaking the code base of these mission-critical applications, or migrating them to another computing platform. They see more opportunity—and far less risk—in focused modernization initiatives that evolve these applications to strategically expose APIs, integrate with hybrid cloud services, or embed AI or AI-driven capabilities.

A mainframe modernization strategy can include the following elements:

• Hybrid cloud integration—modernizing an on-premises legacy mainframe application to interact seamlessly with hybrid cloud architectures, services and resources. This enables workload optimization—for example, moving moving some workloads to cloud infrastructure to take advantage of cloud scalability or elastic compute capacity, while keeping others on the mainframe to help ensure security or meet service level agreement (SLA) specifications.
   

• DevOps integration—refactoring application code to leverage DevOps practices and cloud-native development architectures. DevOps integration increases business agility and pace of innovation by enabling development teams to quickly and frequently deliver and deploy new features and capabilities in response to customer or market demands, in a way that monolithic legacy application code does not.
   

• AI integration—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 or its data platform.
   

• API modernization—using APIs to streamline integration with applications running on other platforms, including newer, more technologically advanced systems. This makes it easier to integrate an application with other applications and ecosystems, to expand its capabilities without coding new features, or to leverage new mainframe technology without upgrading or replacing the existing mainframe.
   

• Infrastructure optimization—when most advantageous, re-platforming or rehosting certain applications on cloud or other more cost-effective infrastructure while maintaining or improving performance.

Organizations can mix these and other methods to achieve different goals. Suppose an organization wants more flexibility to operationalize an application’s transaction data—to make some of the data available to partner-facing applications, or to train AI models. By implementing data virtualization, the application can deliver data to other applications in real-time without providing access to the system of record. And through hybrid cloud integration, the data can be replicated securely to the cloud, for scalability and elastic compute capacity model training requires.

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. In-house skills gaps: 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 years or decades 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.