78% of companies have launched at least one modernization program as a direct result of Covid-19
LONDON & ATLANTA – (COMMERCIAL THREAD) –Advanced, the leading global provider of mainframe and legacy modernization solutions, today released its annual report Mainframe Modernization Activity Barometer 2021 Report, which examines the current mainframe market, the associated challenges facing large companies around the world, and the impact Covid-19 has and will continue to have on modernization planning.
Amid global disruption, the spotlight has been firmly on the critical need for highly functional IT systems in 2020 – whether to meet the demands of a newly trained remote workforce, to manage backend and operational functions. for businesses, or to scale to meet exponential increases in customer demand with no downtime. The government sector in particular has been hit hard by the IT fallout from Covid-19, especially many state governments whose mainframes have collapsed amid huge waves of jobless claims because they were unable to s ‘escalate when the pandemic hit the United States – one of many examples of legacy technologies gone awry.
Since then, large companies in the public sector as well as financial services, insurance, health care and logistics have all quickly accelerated their modernization plans. According to the advanced report:
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78% of companies have launched at least one modernization program as a direct result of the pandemic
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87% have planned at least one legacy modernization program in the next 12-24 months
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60% say Covid-19 has accelerated their cloud transition process
While 77% of those surveyed said they started but failed to complete at least one modernization program, a lack of adequate planning was cited as the main reason for these failures. This lack of planning is often associated with, and exacerbated by, an inadequate understanding of the legacy environment and a lack of expertise in mainframe modernization. Considering, however, that U.S. companies now spend $ 50.8 million on mainframe maintenance, and modernization could save an average of $ 28 million if they modernized the most pressing aspects of their legacy systems, the benefits could be greater. for many. In fact, those who have completed legacy upgrades are enjoying these benefits in a variety of ways:
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55% attribute modernization of legacy to help their businesses accelerate their digital transformation efforts
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54% say it has enabled them to be more responsive to market changes – a jump from 33% last year
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72% consider the modernization activity to be a key element in improving their carbon footprint
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62% say they could save up to a third of their overall IT spend if they modernized just one existing system
“The past year has proven to be a wake-up call for a large percentage of companies who now recognize the importance of mainframe modernization and the move to the cloud, and these results clearly underscore this shifting priority,” said Brandon Edenfield, Managing Director of Application Modernization. for Advanced. “While the pandemic has certainly served as a catalyst and is a big step in the right direction, these issues have plagued the market for much longer than before Covid and will continue to persist without direct change – d ‘especially as skilled and knowledgeable talents are aging and leaving their IT jobs. Today, it is up to CIOs and IT leaders to continue to champion these strategies and partner with experienced specialists backed by a proven track record of success to enable them to adopt what will save their organization time. , money, resources and, ultimately, to strengthen their competitive advantage and agility. long-term.”
To view the full report, please visit: Modernsystems.oneadvanced.com/modernization2021
RESEARCH METHODOLOGY
The 2021 Global Mainframe Modernization Business Barometer report was conducted online by Coleman Parks in April and May 2021. The sample included 400 people working for large companies in Europe and the United States with a minimum annual turnover of 1 billion US dollars. Interviewees included enterprise architects, CIOs, IT managers, application managers and program / project managers in various industries.
ABOUT ADVANCED
Advanced is a leading international application modernization service provider with unique expertise in the legacy application modernization market.
With over 500 modernization projects completed worldwide and over 2.5 billion lines of code processed through our solutions, we drive IT efficiency, agility and competitive advantage for our customers through business transformation. core applications and databases for over 35 years. During this time, we have assisted organizations from all sectors, including the UK Department for Work and Pensions, FedEx and The New York Times.
In the UK, Advanced is one of the top three providers of enterprise software and services, with a solid track record of supporting our clients to the cloud with solutions for public, private and third-party organizations. sector.
We have £ 300million in revenue, over 22,000 clients and employ over 2,500 people, all helping organizations create the right digital foundations that drive productivity, insight and innovation – all by staying safe, secure and compliant.
We simplify complex business challenges and deliver critical software that helps our customers accelerate and transform digitally, positively impacting the lives of millions of people.
We work with organizations across all industries, from healthcare to legal, and of all sizes, whether they want to migrate to the cloud, invest in an ERP, manage core business functions through a unified system, or upgrade their existing applications.
