11/8/2023 0 Comments Move offThe future will favor solutions that facilitate the adoption of these hybrid models. Organizations are looking to leverage hybrid cloud models like SaaS/PaaS that can enable to scale cost-effectively, with improved application development capabilities. Targeting from cloud providers is often driven by their particular flavour of cloud being expanded, with solutions like AWS Outposts, Google’s Anthos, and Azure Stack that bring the cloud closer to the mainframe rather than the other way around. It’s estimated only 37% of outgoing mainframe talent has been replaced over the last five years.²Īs mainframe utilization lessens, the costs associated with running mainframe systems increases, in an already “criticality, but at a huge operating cost” world. The same digital demands around customer experience are driving unrelenting demands on mainframe development. There is an increasing shortage of mainframe-skilled workers, while for mainframe development skills and customer-specific application knowledge skills the gap is increasing. Further, coming out of 2020, two-thirds of CEOs said they are “more confident” in the growth trajectories of their companies over the next three years than they were at the beginning of the year.³ Therefore, speed of innovation is critical. Innovation in cloud is faster, isn’t it? How do these incumbents fend off disruptors, for example, credit card companies’ market share versus the significant growth in mobile wallets, shopping cart instalment apps, and electronic payment applications?Ĭompanies placing customer experience strategies first outperform laggards (those placing other strategies first, such as cost) by 80%. Mainframe users tend to be incumbents with data-heavy and highly critical applications (think banking). In comparison, the mainframe market has a CAGR about half of that.¹ This translates to movement away from mainframe to Linux-based systems. The global compute market is expected to reach $505.45 billion in 2025 at a CAGR of 8% and 2021 is estimated to have a CAGR of 10.9% over 2020. The cloud versus mainframe debate has been running for years, but there’s a reason why cloud service providers are nibbling at the mainframe user market, well actually, several reasons. AWS, Microsoft, and Google each have mainframe migration programs.
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