analyzer a standishexpress™ group survey summary IBM MAINFRAME MODERNIZATION WHAT IS LIKELY TO REPLACE THE MAINFRAME? This summary details the results of a survey of CIOs with IBM mainframes conducted by Standish Group1. The CIOs provided answers to a range of questions designed to understand how they see the future of the mainframe within their organizations, and their attitudes towards modernization and the drivers for such a change. The preferred option is to migrate the mainframe workload to Windows, UNIX or Linux with 59% indicating that this is a modernization approach they are considering. Very few (only 15%) are considering rewriting applications (figure 2). This aligns well with the top ranked most important factors for deciding which modernization approach to follow; minimizing disruption to the business followed by avoiding project risk (figure 3). The survey findings give insight into some burning questions that CIOs, CFOs and software development organizations have been asking for years. WHAT IS THE FUTURE FOR THE MAINFRAME? One of the stand-out findings is that 70% of the CIOs said that while the mainframe plays a strategic role in their organization today, in five years time the picture will be very different. In fact, none considered that the mainframe would play a central role and 59% see it playing a minor role only. At present 44% consider that more than half of the applications running on the mainframe are mission critical, yet the mainframe is not seen as a central part of the IT landscape within five years. So what are they planning to do with the applications? The answer appears to be modernizing – with 78% either embarked on or planning to embark on a modernization project within 18 months (figure 1). Figure 2. Mainframe application modernization approaches Rank Decision factors in order of importance 1 Minimal business disruption 2 Project risk 3 Cost and return 4 Little re-training of staff 5 Security and reliability Figure 3. The most important factors in deciding on a mainframe modernization approach Figure 1. CIOs planning mainframe application modernization initiatives A Standish Group survey summary Extensibility and integration with other systems were identified as highly important to the future IT direction, however, integrated management was ranked lowest of the operational attributes of the mainframe. The impetus for change is thus clearly defined within the attitudes towards the anticipated future value of the mainframe in organizations’ IT development. For anyone making a decision to change, the perceived end result must be greater than by maintaining the status quo. While it appears that many of the CIOs responding to the survey are actively following a strategy to move off the mainframe completely, particularly relating to reducing costs, the pace of change seems to be certain, but gradual. WHAT IS DRIVING THE CHANGE? The primary drivers for modernization are reducing both cost and risk, and the primary reasons behind any reluctance to modernize appear to be availability and disaster recovery – with both scoring high as operational attributes of the existing mainframe. Rank Mainframe application issues in order of importance 1 Expensive to run 2 Drains staff and budget resources 3 Lack of skills in the talent pool 4 New business demands 5 Inflexible platform Figure 4. Mainframe application issues driving modernization When the mainframe application issues (figure 4) are translated by the CIOs into action, in the form of business drivers, improved business agility takes over as the primary driver, pushing cost drivers into second and fourth places (figure 5). Rank Mainframe modernization drivers in order of importance 1 Improve business agility and efficiency 2 Reduce costs 3 Accelerate time to market 4 Increase revenue 5 Increase focus on innovation Central/ strategic role Average role Minor role No role 70% 15% 15% 0% Over the 15% next 5 years 41% 37% 7% In 5 - 10 years 7% 33% 59% Currently 0% Figure 6. The role of the mainframe in the organization’s future. This suggests that CIOs may be looking to a piecemeal approach to replacing the mainframe, gradually weaning applications off it so that it becomes redundant rather than embarking on a more dramatic strategy to rip out the mainframe in a single activity and avoiding the business disruption and risk that this approach would generate. To read further research from Standish Group, please visit the Micro Focus Application Modernization Resource Center, where you will find this and other research reports, white papers and more. www.microfocus.com/applicationmodernization 1 Standish Group surveyed 26 CIOs in Fortune 1000 companies, March 2010 Figure 5. Mainframe modernization business drivers For additional information please visit: www.microfocus.com © 2011 Micro Focus IP Development Limited. All rights reserved. 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