ISG Provider Lens™ report sees trend toward
mainframe modernization and mainframe-as-a-service gaining
traction
Enterprises in the U.S. still running on mainframes are looking
to service providers to help modernize their use of the legacy
computing platform to improve operating agility and lower costs,
according to a new report published today by Information Services
Group (ISG) (Nasdaq: III), a leading global technology research and
advisory firm.
The 2021 ISG Provider Lens™ Mainframe Services & Solutions
Report for the U.S. finds many enterprises in the country exploring
various options, from introducing agility into legacy mainframe
applications, to moving all applications off their mainframe to
other computing platforms or adopting a mainframe-as-a-service
(MFaaS) model with pay-as-you-go pricing.
“The mainframe modernization market has been accelerating in the
last two years, driven by the need of organizations to increase
agility and lower operating costs,” said Jan Erik Aase, partner and
global leader, ISG Provider Lens Research. “Enterprises that do not
plan to modernize should consider outsourcing their mainframe
operations.”
Service providers are offering several tools that allow
enterprises to modernize their mainframes, the report says.
Providers of MFaaS and mainframe modernization services can achieve
a 10 to 25 percent cost savings by transitioning services.
Providers check configurations, software licenses and dead code
that may waste mainframe resources.
The report notes 92 of the world’s top 100 banks, 23 of the top
25 U.S. retailers, and nine of the world’s 10 largest insurance
companies run IBM Z systems mainframes.
Nevertheless, many U.S. enterprises see hardware decisions as
increasingly irrelevant, with more focus on business applications,
the report says. They are abandoning legacy programming languages
such as COBOL, Assembler and Natural in favor of Java, .NET and C#.
In some cases, service providers are helping enterprises covert
COBOL to Java.
Some enterprises have resisted mainframe modernization based on
the outdated myth that the vast amount of data stored on mainframes
cannot be moved to the cloud, the report says. Cloud data lakes
have become popular alternatives for storage, flat files and
virtual tape backup.
Another myth, according to the report, is that the cloud cannot
scale as well as mainframes. Cloud services can simply add more
servers and offer the same, or even better, performance.
The report sees the most frequently used method for modernizing
the mainframe as encapsulating batch and business functions into
microservices that can run directly in the cloud. In some cases,
mainframes are decommissioned, with modernization providers moving
applications to the cloud or re-platforming them.
In addition, the process of re-engineering applications off the
mainframe is gaining traction, the report says. Tools are fast,
reliable and produce quality code. Recent advances in methods and
technology includes artificial intelligence, programming
frameworks, code quality inspection and automated testing.
The 2021 ISG Provider Lens™ Mainframe Services & Solutions
Report for the U.S. evaluates the capabilities of 46 providers
across five quadrants: Mainframe Modernization Services, Mainframe
Transformation Services, MFaaS – Mainframe as a Service, Mainframe
Operations, and Mainframe Modernization Software.
The report names Atos as a Leader in four quadrants and
Capgemini, Ensono, IBM and Infosys as Leaders in three. HCL and TCS
are named Leaders in two quadrants, and Accenture, Advanced, Blu
Age, Cognizant, DXC Technology, Fujitsu, Google, Mindtree, Mphasis,
Tech Mahindra, TmaxSoft, TSRI and UST are all named Leaders in
one.
In addition, HCL, Heirloom Computing, Unisys and UST were named
Rising Stars—companies with “promising portfolios” and “high future
potential” by ISG’s definition—in one quadrant each.
Customized versions of the report are available from Ensono,
Google, Heirloom Computing, Infosys, Mindtree, Mphasis, and
TmaxSoft.
The 2021 ISG Provider Lens™ Mainframe Services & Solutions
Report for the U.S. is available to subscribers or for one-time
purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only
service provider evaluation of its kind to combine empirical,
data-driven research and market analysis with the real-world
experience and observations of ISG's global advisory team.
Enterprises will find a wealth of detailed data and market analysis
to help guide their selection of appropriate sourcing partners,
while ISG advisors use the reports to validate their own market
knowledge and make recommendations to ISG's enterprise clients. The
research currently covers providers offering their services
globally, across Europe, as well as in the U.S., Germany,
Switzerland, the U.K., France, the Nordics, Brazil and
Australia/New Zealand, with additional markets to be added in the
future. For more information about ISG Provider Lens research,
please visit this webpage.
A companion research series, the ISG Provider Lens Archetype
reports, offer a first-of-its-kind evaluation of providers from the
perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 700 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,300
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210511005937/en/
Press Contacts: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com Cait Buckley, Matter Communications for
ISG +1 617 874 5214 isg@matternow.com
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