Asia Pacific Firms Act on Mainframe Needs, Possibilities
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From an IT strategy perspective, the report highlights a nuanced landscape where enterprises in Asia Pacific are not uniformly abandoning mainframes for cloud solutions. Instead, they're assessing the value proposition of mainframes in the context of their specific technical and business requirements. This suggests a mature approach to IT infrastructure, where the decision to optimize or modernize is not a one-size-fits-all but a strategic choice.
Organizations are evidently recognizing the enduring strengths of mainframes—reliability, availability, security—particularly for business-critical functions. This is in contrast to the industry's earlier predictions of mainframes becoming obsolete. The report's findings indicate a shift towards a hybrid IT environment where mainframes coexist with cloud services, which is a significant development for businesses that could influence their investment in IT infrastructure.
The mention of mainframe-as-a-service (MFaaS) as a growing trend is particularly interesting. By moving mainframe expenses from capital to operational expenditures, companies can potentially achieve greater financial flexibility. This model aligns with the broader industry shift towards 'as-a-service' offerings, potentially impacting how businesses budget for and manage their IT resources.
Cloud computing's role in this context is multifaceted. Companies are leveraging cloud services for their on-demand capabilities and integration with enterprise-wide DevOps methodologies. This reflects the broader industry trend towards agile, scalable and cost-efficient IT solutions. The shift towards cloud/mainframe integration is a testament to cloud computing's flexibility and its ability to complement existing technologies rather than replace them entirely.
The report's indication of increased demand for products that support this integration suggests a market opportunity for cloud service providers. However, it also implies a challenge for providers to ensure seamless integration with legacy systems. The cultural change required to embrace DevOps in traditionally mainframe-focused organizations should not be underestimated, as it involves significant shifts in processes and mindsets.
The growing interest in generative AI to enhance productivity within mainframe environments is another key point. It showcases the potential for cutting-edge technologies to revolutionize even the most established IT systems, suggesting a future where AI-driven automation could become a standard component of mainframe operations.
The skills shortage mentioned in the report is a critical human resources challenge. As mainframes continue to play a significant role in business operations, the need for skilled professionals who can manage and innovate on these platforms is becoming more acute. The integration of mainframes with generative AI applications further complicates this issue, as it requires a workforce that is not only proficient in legacy technologies but also adept in emerging technologies.
This shortage could lead to increased competition for talent, potentially driving up labor costs and impacting the profitability of businesses in the region. Companies may need to invest more in training and development programs to upskill their existing workforce or consider alternative strategies such as partnerships with service providers who can supply the necessary expertise.
The report's findings on the skills gap should serve as a call to action for educational institutions and the industry to collaborate on developing curricula and certification programs that address this impending shortage.
Companies in the region take different approaches to optimizing legacy systems or modernizing software based on requirements, ISG Provider Lens™ report says
The 2024 ISG Provider Lens™ Mainframes — Services and Solutions report for
“After discovering the true costs of migration and cloud computing, enterprises in
Many companies cannot function without their mainframe environment because they rely on its reliability, availability and security for business-critical functions, the report says. Depending on technical and business requirements, they are choosing whether to host particular applications on the mainframe, take them off the mainframe completely or use cloud/mainframe integration.
Most enterprises that use large, complex mainframes for strategic functions retain legacy applications but enhance them, ISG says. Their modernization playbooks may include using microservices, APIs or agile development processes. Companies with smaller, less complex mainframe implementations are more likely to reduce or eliminate legacy technology. These projects are often easier for organizations in
Mainframe transformation has increased demand in the region for new and updated products, the report says. Enterprises want to take advantage of on-demand cloud computing and enterprise-wide DevOps methodologies for cost savings and faster time to market. However, embracing DevOps in what has been a mainframe-focused organization also requires cultural change.
To reduce the costs and risks of maintaining mainframes, a growing number of enterprises in
“Companies in this region that had expected mainframes to become obsolete have found lasting value in their resilience and capacity,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are helping clients integrate legacy systems into hybrid cloud environments.”
The report also explores other mainframe trends in
For more insights into the mainframe-related challenges facing
The 2024 ISG Provider Lens™ Mainframes — Services and Solutions report for
The report names Wipro as a Leader in four quadrants. It names HCLTech, Infosys, Kyndryl and TCS as Leaders in three quadrants each. Capgemini is named as a Leader in two quadrants. Accenture, AWS, DXC Technology, Google, IBM and TMaxSoft are named as Leaders in one quadrant each.
In addition, Capgemini is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. DXC Technology, Kyndryl and mLogica are named as Rising Stars in one quadrant each.
In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2024 among mainframe service and solution providers. HCLTech earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2024 ISG Provider Lens™ Mainframes — Services and Solutions report for APAC 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
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 900 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 AI and 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
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Press:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com
Source: Information Services Group, Inc.
FAQ
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