Unstoppable Mainframe: A Study of Enterprise IT Spending – NASDAQ:III Unstoppable Mainframe: A Study of Enterprise IT Spending – NASDAQ:III

JJ Bounty

The Enduring Legacy of Mainframes in the Age of Cloud Computing

As companies navigate the winding paths of technological advancement, a recent study by Information Services Group (ISG) unveils a fascinating trend in enterprise IT spending. Despite the surge in public cloud adoption, organizations that rely on mainframes are showing a steadfast commitment to these legacy systems. The ISG Market Lens™ Mainframe and Mainframe as a Service (MFaaS) Study reveals that a sizable portion of large enterprises are gearing up to bolster their mainframe resources over the next few years.

A Balancing Act: Mainframe, MFaaS, and Public Cloud

The findings of the ISG study underscore the enduring importance of mainframes in large enterprises. Alex Bakker, the Distinguished Analyst at ISG, notes that while the allure of public cloud continues to grow, its dominance in enterprise IT remains incomplete. Mainframe usage is poised to expand, with a surge in demand for MFaaS offerings projected in the near future.

Driving Factors: Conflicting Demands and Security Concerns

Conflicting enterprise demands, such as the adoption of AI and the imperative of data security, are cited as key drivers behind the sustained reliance on mainframes. Michael Dornan, principal analyst and co-author of the study, highlights the rise in application storage and compute demands, coupled with the pressure on IT departments to optimize costs, as additional factors fueling mainframe demand.

Emergence of MFaaS: A Cost-Effective Solution with Strategic Benefits

MFaaS emerges as a viable solution, offering cost efficiencies and the much-needed flexibility and interoperability synonymous with public cloud services. Moreover, the transition to MFaaS potentially addresses the challenge of a dwindling talent pool as seasoned mainframe experts retire.

Challenges and Priorities: Security Reigns Supreme

The study sheds light on the top priorities of enterprise mainframe users, with cost optimization, legacy application retirement, AI integration, and information security taking precedence. Notably, while security measures are deemed effective, other aspects such as cost reduction and legacy application retirement face significant hurdles.

Path Ahead: Mainframe Modernization and Provider Partnerships

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In the wake of these challenges, enterprises are expected to turn to mainframe modernization services to extract maximum value from their existing investments. Service providers are anticipated to play a pivotal role in optimizing costs, enhancing integration, and facilitating a seamless transition to the world of cloud computing and MFaaS.

ISG Market Lens™





The Rising Tide of Technology: ISG Market Insights

The Rising Tide of Technology: ISG Market Insights

Unlocking the Investment Potential

In a swirling marketplace filled with the buzz of cybersecurity, the rise of global capability centers, and the firm foundation of sustainability, one beacon shines bright. ISG (Information Services Group) has emerged as a titan in the realm of global technology research and advisory services.

A Legacy of Excellence

Established back in 2006 and headquartered in Stamford, Conn., ISG has paved an illustrious path over the years. Trusted by more than 900 clients, including 75 of the world’s top 100 enterprises, the organization is a stalwart ally dedicated to fostering operational brilliance and accelerated growth. ISG’s array of services covers the spectrum of digital transformation, sourcing advisory, risk management, and market intelligence, making it a multifaceted powerhouse in the tech domain.

Charting New Waters

Navigating through the choppy seas of technological advancement, ISG employs over 1,600 adept professionals across 20 countries. Their global footprint leaves an indelible mark on the industry, marked by pioneering ideation, profound sector know-how, and exhaustive data analytics. The company’s commitment to research and analysis has set new benchmarks, ensuring a comprehensive comprehension of the market landscape.

Embracing Innovation

In a world where change is the only constant, ISG stands as a beacon of innovation. Armed with a deep-rooted culture of creativity and a penchant for cutting-edge solutions, ISG continues to shape the technological landscape with its forward-thinking strategies. The organization’s journey exemplifies resilience, adaptability, and a steadfast commitment to excellence.

Contact ISG for more information on ISG Market Lens research.