The results are in: Mainframe Application Modernization — not migration — is the clear winner

The results are in: Mainframe Application Modernization — not migration — is the clear winner

The results are in: Mainframe Application Modernization — not migration — is the clear choice

There’s a lot of noise in the market and I want to set the record straight. I see posts regarding mainframe migration that paint a picture that is completely different from the reality I see, so I’d like to share my thoughts on the best approach to modernization.

Simply put, modernization doesn’t equal migration. Migration has yet to succeed at scale — with many projects resulting in cost overruns and unexpected technical challenges. Based on my conversations with clients and analysts, I believe there are two key reasons why this is the case:

·      Migrating moves or rewrites 100% application code, often millions of lines. This can bring complexity and risk with migration timeframes that can stretch out five to ten years, as illustrated in recent research from Futurum regarding a failed mainframe migration. In contrast, a hybrid approach can help modernize a fraction of the code to achieve similar business outcomes. This approach is designed to  drive much faster time to value, lower cost, and address the risk of the project failing substantially to achieve modernization results.

·      When companies try to migrate mission-critical workloads, they can often struggle to meet performance, security, and resiliency requirements. IBM zSystems are optimized for secured transaction processing, the product of decades of innovation to support mission-critical applications.

A hybrid cloud approach with IBM zSystems can ofer a stable modernization strategy

So, what’s the best approach for a client to take when starting out on their modernization journey? In my view, it’s a hybrid approach that includes IBM zSystems. With capabilities like integrated on-chip AI acceleration, the industry’s first quantum-safe system[1], and the highest levels of availability in the industry[2] with eight 9’s of availability (0.3 seconds of downtime per year)[3] – this technology is fine-tuned for our clients’ needs. And with investments in automation, AIOps, DevOps, APIs, modern programming languages and data integration, businesses can address the need for specialized mainframe skills and easily access zSystems data. That being said, enterprises can have legacy applications that have been running for years — and this is where the opportunity arises. Modernization enables applications to take advantage of the cutting-edge capabilities of IBM zSystems.

We believe in a best-fit workload placement strategy, as demonstrated by our own partnerships with hyperscalers including AWS and Microsoft Azure. That said, while not all applications make sense to run on the mainframe, it is without a doubt built to be a strong platform for your secured, transaction processing workloads. That’s why our strategy of mainframe application modernization is being adopted by so many of our customers[4]. It’s even highlighted by Forbes as one of the 6 most important tech trends for 2023.

Take it from our clients: the mainframe continues to grow

When you zoom out and look at the big picture, IBM zSystems installed capacity worldwide continues to grow — more than tripling over the past decade — even as the era of cloud has consumed the headlines. Our latest system, IBM z16 has already outpaced the first year of the prior cycle through its first four quarters following launch. Considering IBM z15 program revenue exceeded more than 100% of IBM z14 revenue in the first two years following its launch, the trajectory of the platform continues to demonstrate strength. Also, the z15 program saw installed MIPS (capacity) grow at double the rate of z14, driven by the key trends of hybrid cloud, Linux, and digital transformation.

Our clients are seeing growth, too. According to the IDC State of the Mainframe Multi Client Study, a majority of respondents say they generated more revenue due to modernizing on IBM zSystems, with some reporting between 6-10% more revenue. To learn more about how clients are implementing application modernization, please visit the IBM Z and Cloud Modernization Center.

When enterprises talk about migration projects, it may seem like there is a wholesale effort to shut down the mainframe, but in my conversations with clients, I’ve seen most move a very small percentage of their workload, with these same companies actually growing their mainframe capacity overall. In fact, a 2020 Deloitte study of 200+ mainframe decision makers found that 91% are prioritizing expanding their mainframe footprint in the next 12 months. This is completely in line with a well-planned modernization approach.

So the next time you are sitting in a vendor presentation or webinar that promotes “Migrate first, ask questions later,” hit pause. Do ask the questions: What are the risks and costs? What are the tangible benefits and tradeoffs? Are we addressing key challenges or just moving them to another platform? -I believe that hybrid cloud is the right approach to modernization. Make sure your strategy will be a success, not a cautionary tale.

To learn more about our prescriptive approach to mainframe application modernization, please check out our recently released Redbook.

[1] DISCLAIMER: IBM z16 with the Crypto Express 8S card provides quantum- safe APIs providing access to quantum-safe algorithms which have been selected by NIST to become part of its post-quantum cryptographic standard. https://www.nist.gov/news-events/news/2022/07/nist-announces-first-four-quantum-resistant-cryptographic-algorithms Quantum-safe cryptography refers to efforts to identify algorithms that are resistant to attacks by both classical and quantum computers, to keep information assets secure even after a large-scale quantum computer has been built. Source: https://www.etsi.org/technologies/quantum-safe-cryptography .” These algorithms are used to help ensure the integrity of a number of the firmware and boot processes. IBM z16 is the Industry-first system protected by quantum-safe technology across multiple layers of firmware. According to Peter Rutten, Research Vice-President IDC, "z16 is the industry's first quantum-safe computing platform."

[2] Source: Information Technology Intelligence Consulting Corp. (ITIC). 2022. Global Server Hardware, Server OS Reliability Survey. https://www.ibm.com/downloads/cas/BGARGJRZ

[3] Eight nines: For clients running IBM z16 with z/OS 2.5 and common IBM software stack, userscan expect up to 99.999999% availability when the configuration includes an enabled Parallel Sysplex,System Recovery Boost (SRB), GDPS, DS8K with HyperSwap, and best practices.DISCLAIMER: Based on IBM internal data. Necessary components include: IBM z15 or IBM z16, IBM middleware subsystems (CICS v5.4, IMS v15.2, MQ v9.2, Db2 v12,Websphere, or later), supported by z/OS Parallel Sysplex, DS8000 Series storage, GDPS HyperSwap Manager (HM) and GDPS Continuous Availability (CA). A minimum ofthree member systems with workload-level availability and redundant components are required, with a third data center serving as a continuous availability Disaster Recoverysite. IBM Middleware subsystems must be deployed with redundant regions in conformance with high availability best practices:https://www.redbooks.ibm.com/abstracts/sg248446.html. Other configurations may provide different availability characteristics.

[4] Review customer examples here: https://www.ibm.com/community/z-and-cloud/browse-resources/?filter-content-type=Customer%20Case%20Study&filter-paged=1k.

what about the risk of running your applications on a proprietary hardware, with high entry barrier and expert folks who retire but aren't replaced by young recruits?

The key is the breakeven and risk in moving away from mainframe. For decades IBM has bet on lowering the TCO of mainframe, by providing a full range offering - HW, SW, Services. With the split of Kyndryl and IBM wishing to maintain absolute margins on mainframe, prices are mounting and breakeven from migration will be a lot easier to achieve. Besides, it is Kyndryl now which dominates mainframe knowledge (not IBM). Either IBM gets its margins to an affordable level, or the market will make the mainframe irrelevant, faster than you think. #kyndryl will lead the transformation - we know better than anyone how to run mainframe and reducing the cost and risk of moving away from it. We are investing heavily in refreshing and creating a knowledge pool to modernize and run mainframe based solutions, but we are also expanding our capacities on migrating to the more adequate solutions - whenever that' the case. #heartofprogress and will lead our customers - and future customers! - to the most efficient solutions for them, whichever they are. Where mainframe is the best, we will be there leading, but mark my words: with mounting TCO, mainframe has significantly reduced its natural space.

Paul Blaker

Senior Client Architect at IBM

11mo

Agree. Modernising brings a far better ROI and it's the lowest risk option.

Leo Anand S.

Global Account Director @ Altair | MBA, Sales Strategy

11mo

Below are the commercial benefits of upgrading from SAS Institute’s software products to Altair’s SLC software on IBM System z mainframe platforms. Altair has performed over 50 mainframe upgrades for customers, including some of the world’s largest financial services, banking, and insurance companies. The business drivers for these software upgrades are typically: 1. Reduction of software license fees at least 50% annually 2. Move to clear, flexible, fair license agreements 3. Low risk, short deployment and migration times for fast ROI 4. Open architecture and approach to facilitate mainframe modernization strategies, including the adoption of emerging and open-source technologies and cloud infrastructure. There are only two vendors in the world offering a compiler/interpreter for SAS language programs: SAS Institute and Altair. SLC is the Altair software product that has these features with over 500 customers worldwide and over 50 running on IBM System z mainframes running z/OS.

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