The Modern Mainframe
From Legacy Core to Hybrid Powerhouse
The narrative has shifted. No longer a relic, the mainframe is a strategic, high-performance pillar of the modern digital ecosystem, powering the global economy with unmatched efficiency and reliability.
Mainframes are the beating heart of global commerce, processing the vast majority of all transactions worldwide.
Handling the most critical tasks for the world’s largest enterprises, all while consuming only 6-8% of total IT costs.
A majority of infrastructure leaders are expanding their mainframe footprint, signaling a strong belief in its future.
A Tale of Two Markets
Core Mainframe Market Growth
The foundational market for hardware and software shows stable, consistent growth, proving ongoing investment in the core platform.
Mainframe Modernization Market Growth
The services market is experiencing explosive, high-double-digit growth as organizations race to integrate and optimize their legacy systems.
The AI-Powered Revolution
Leaders recognize the mainframe’s unparalleled data processing power as a critical enabler for real-time AI and analytics on mission-critical workloads.
Accelerating Transformation
Generative AI tools are fundamentally changing modernization timelines, automating complex tasks like code conversion and analysis.
Before AI
Multi-Year Projects
With Generative AI
Multi-Quarter Sprints
The Modernization Playbook
Modernization is not a single path but a spectrum of strategies. The focus has shifted from a risky “rip-and-replace” to a pragmatic, value-driven approach of optimizing workloads in a hybrid environment.
Replatform
Move apps with minimal code changes to a new platform (e.g., cloud).
Refactor
Rewrite legacy code into modern languages like Java.
In-Place Modernization
Expose core functions via APIs without changing legacy code.
Hybrid Cloud
The end goal: run workloads on the best platform, seamlessly integrating mainframe and cloud.
The Power Players’ Market Share
The modernization market is highly consolidated, with five key players commanding a dominant share of the ecosystem.
A Competitive & Collaborative Ecosystem
The landscape is defined by “co-opetition,” where tech giants and service providers partner to deliver comprehensive, multi-vendor solutions. The goal isn’t platform dominance, but creating a flexible, hybrid IT estate that meets complex client needs.
Where the Mainframe Reigns: Mission-Critical Industries
Banking & Finance
The core platform for 43 of the top 50 banks. Processes >95% of non-cash transactions, ensuring security and business continuity.
Retail & E-commerce
Powers back-end logistics, inventory, and high-volume transaction processing for 71% of Fortune 500 companies.
Government & Public Sector
Delivers mission-critical digital services requiring extreme stability, from tax processing to citizen data management.
