Why 2025 is the Year to Modernize Mainframe Applications

Legacy mainframe systems started to become a significant bottleneck years ago. In 2025, the problems are getting even worse. Obsolete technology, a dwindling workforce, and rising costs have led to a trifecta of problems for the organizations that still relied on mainframes to run their mission-critical applications. Today those problems are more intense than ever, and the risks associated with mainframe systems can no longer be ignored.

The good news is that mainframe modernization is faster, easier, and more flexible than ever before. 2025 presents a pivotal opportunity for enterprises to modernize their technology and ensure their IT infrastructure aligns with the demands and capabilities of the modern era. Here are the key factors that are driving change:

1. Lack of Documentation and Subject Matter Experts

Many organizations no longer have a comprehensive understanding of their legacy mainframe applications. Historically, maintenance of these systems has hinged on "institutional knowledge" or "tribal knowledge," – information passed down informally by subject matter experts (SMEs). But as those SMEs retire or leave their organizations, this critical knowledge disappears, turning mainframe applications into"black boxes" that developers are reluctant to modify due to the risk of breaking essential functionality. Modernization can mitigate this by transitioning to systems that are better documented, easier to understand, and supported by a broader talent pool.

2. Rising Operating Costs

Renewing contracts with mainframe vendors often comes with an unpleasant surprise: skyrocketing costs. This trend shows no sign of abating as mainframe vendors raise prices to maintain profitability in the face of a shrinking customer base. Modernization provides a path to escape vendor lock-in, reduce operational expenses, and invest in scalable, cost-efficient technologies. See how this luxury and commercial automotive company solved mainframe challenges by modernizing core business applications.

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3. The Mainframe Talent Shortage

The tech workforce of today and tomorrow is focused on emerging technologies like AI, cloud computing, and data science. A generation of mainframe experts is reaching retirement age, and many have already left the workforce. Few computer science graduates are being trained in older programming languages like COBOL and Natural, and they’re unfamiliar with the hierarchical databases running on most mainframes. By modernizing, organizations can leverage contemporary skill sets and avoid being constrained an outdated talent pool.

4. Limited Compatibility with Emerging Technologies

It can be a struggle to integrate legacy mainframe systems with today’s cloud-based applications and tools. Modernized systems, in contrast, allow for seamless integration, improving opportunities to roll out innovations like AI, advanced analytics, and edge computing. This ability to rapidly roll out new products and services is what sets apart agile competitors from their slower-moving rivals.

5. Enhanced Security

Maintaining the security of mission-critical systems is non-negotiable, yet many mainframe systems and applications lack adequate support and timely security patches. That leaves organizations exposed to potential cyberattacks and data breaches. Modernized systems, in contrast, benefit from regular updates and patches, hardening them against evolving security threats. Cloud-based systems are typically monitored 24x7 by dedicated security experts with robust tools for detecting threats and protecting against cyberattacks.

6. Simplified Disaster Recovery

Disaster recovery (DR) solutions in the cloud are more cost-effective, scalable, and efficient than traditional mainframe-based DR systems. They provide features like automated backups and rapid recovery, reducing complexity and risk while minimizing downtime in the event of an incident. Modernization paves the way for these advanced capabilities.

7. Overcoming Inflexible Legacy Code

Mainframe systems are inherently rigid, making the mill-suited for the fast-paced demands of modern business. Lengthy development cycles slow time-to-market for new features and products, while heavy dependence on proprietary technologies limits flexibility. Modernization helps organizations to be more agile as seen with this global distributor of hardware products, enabling them to adapt to changing market requirements faster and more effectively.

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8. Meeting Regulatory Requirements

Regulatory compliance is a growing concern for enterprises with outdated systems. Legacy mainframes often lack the transparency, accuracy, and governance capabilities needed to meet modern compliance standards. This can lead to regulatory action, including fines and penalties, potential legal action, and negative publicity. Modernized systems offer improved data visibility, accurate compliance tracking, and advanced governance tools.

9. Revenue Loss

Outdated systems can contribute to revenue leakage due to an inability to track committed pricing versus actual performance. Legacy systems also hinder innovation, making it difficult to quickly take advantage of new revenue streams. As competitors adopt more agile and customer-focused technologies, businesses running mainframe systems risk increased customer attrition. By transitioning to modern platforms, organizations can better track revenue, enhance customer satisfaction, and drive innovation.

Mainframe Modernization in 2025

For many organizations, 2025 will be a decisive year for mainframe modernization. The rapidly escalating costs and risks associated with legacy systems, coupled with the opportunities provided by modern technology, make this the ideal time for businesses to act. Modernizing mainframe applications is not just about reducing expenses; it’s about positioning your organization for success in a fast-evolving digital economy.

Ready to begin your modernization journey? Contact the mainframe modernization experts at Astadia to start a conversation about your project