Mainframe-to-Cloud Migration Poised to Unlock Data

The 2022 ISG Provider Lens™ report indicates slow adoption of cloud migration tools for legacy mainframe applications among U.S. enterprises.

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04/08/2022 - 10:21 AM EDT

Breakthroughs bring new levels of scalability and data access for legacy applications, though U.S. enterprise adoption is still slow, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Recent advances in tools for migrating legacy applications to the cloud have altered the mainframe market, but so far, few U.S. enterprises have adopted them, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Mainframes – Services and Solutions report for the U.S. finds a growing number of automated tools available that can convert mainframe COBOL applications to cloud-based software in only days, with minimal engineering staff and with the potential for infinite scalability in the cloud. Many mainframe IT departments have just begun to learn about these capabilities.

Large-scale enterprise migrations have typically taken an average of 18 months or as much as five years. Given the scale and complexity of such projects, the market has been slower to adopt these automated migration tools than expected, ISG says. Lack of awareness and a shortage of qualified experts has also held back adoption.

“At the current pace, with a small number of projects and slow execution, all possible mainframe-to-cloud migrations could take another 10 years to complete,” said Dave Goodman, director, Cloud and Software Advisory, at ISG.

In migrating mainframe applications to the cloud, organizations are seeking better access to the data captured in these legacy systems, the report says. With it, companies can leverage advanced analytics, AI, machine learning and data lakes. Other potential benefits include improved business agility and long-term cost reduction.

Strong growth in these projects is coming in the next few years as hyperscale cloud providers acquire and promote new tools, the report says.

“ISG expects the number and size of migration projects to grow significantly in the next three years,” said Bernie Hoecker, ISG partner, Enterprise Cloud. “AWS, Microsoft/Azure, Google Cloud Platform and other cloud providers will invest heavily in tools, processes, skills and infrastructure to enable clients to migrate from legacy to modern environments.”

The report advises companies to meet with a consultant to understand their options, what different providers offer, and identify the best timing for projects before making a decision about mainframe modernization. The report also includes other insights on the obstacles to migration and how companies can best prepare for change in the mainframe world.

The 2022 ISG Provider Lens™ Mainframes – Services and Solutions report for the U.S. evaluates the capabilities of 45 providers across five quadrants: Mainframe Modernization Services, Mainframe Application Modernization and Transformation Services, Mainframe as a Service (MFaaS), Mainframe Operations, and Mainframe Application Modernization Software.

The report names Atos as a Leader in four quadrants and Capgemini, Esono, Infosys, Kyndryl and TCS as Leaders in three quadrants each. HCL and Wipro are named as Leaders in two quadrants each. Accenture, Advanced, Astadia, AWS (Blu Age), Cognizant, Google, Heirloom Computing, Mindtree, Mphasis, Tech Mahindra, TMaxSoft and TSRI are named as Leaders in one quadrant each.

In addition, Asysco, CloudFrame, HCL, UST and Wipro are named as Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in one quadrant each.

Customized versions of the report are available from CloudFrame, Heirloom Computing, Infosys, Kyndryl and Mphasis.

The 2022 ISG Provider Lens™ Mainframes – Services and 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., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, 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 800 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.