Mainframe modernization efforts are gathering momentum, according to new research, with enterprises unlocking significant performance gains and cost savings.
Figures from Kyndryl’s 2025 State of Mainframe Modernization survey show project costs have decreased significantly while returns on investment (ROI) have increased in parallel.
Kyndryl noted that respondents have reported an ROI of between 288% to 362% on mainframe modernization initiatives, which have traditionally proven costly.
Similarly, 80% said they’ve actively shifted modernization efforts in the last year in a bid to contend with an influx of emerging technologies, such as generative AI.
AI is now a “present-day business catalyst” rather than a future consideration when embarking on mainframe modernization projects, the survey found. Nearly 90% of enterprises have implemented – or plan to implement – generative AI on the mainframe.
This, Kyndryl said, is expected to deliver huge long-term benefits. Enterprises forecast upwards of $13 billion in savings alongside $20 billion in new revenue opportunities from mainframe AI integration over the next three years.
“The mainframe has become the AI-fueled catalyst of hybrid enterprise strategies, delivering billion-dollar returns while powering innovation for customers,” said Hassan Zamat, Global Practice Leader for Core Enterprise at Kyndryl.
“Organizations are taking a much more pragmatic approach to modernization to drive better business outcomes and incorporate new technologies. Working with the right partners can help them build a resilient, secure and future-ready platform.”
Mainframes are the backbone of hybrid IT
Notably, the Kyndryl survey found that mainframes now form the backbone of hybrid IT strategies.
More than half (56%) of respondents reported increased usage of the platform over the last 12 months, which now forms a “key component” within integrated hybrid environments.
“42% say they are placing more focus on modernizing directly on the mainframe and 50% are moving more towards a hybrid strategy,” the report noted. “That 50% is comprised of 34% prioritizing integration with cloud platforms, and 16% are increasing the pace of moving applications off the mainframe.”
“This clear trend toward hybrid strategies blends on-platform modernization with enhanced cloud connectivity,” it added.
Mainframes were expected to die out with the advent of cloud computing as enterprises shifted to more agile storage options. While there has been a notable decrease, recent studies have shown enterprises are coming back around.
Analysis from application modernization firm Advanced in February 2024 found more than half (52%) of companies planned to maintain or increase their dependency on mainframes.
A similar number said mainframes were their preferred platform for core applications and legacy applications hosted on mainframe infrastructure.
As with the Kyndryl survey, research from Advanced specifically highlighted the hybrid approach enterprises are now adopting. Around 92% of respondents said they favored a hybrid cloud approach with incorporated mainframes,
Advanced said that a division of deployment was emerging, with mainframes used for core applications and cloud for innovation, with 92% favoring a hybrid cloud approach.
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