Your Insights for the Future: The Vanson Bourne Survey on the Enduring Importance of Mainframes and COBOL

Executive summary

Despite the constant evolution of technology, the mainframe and its COBOL applications continue to power key operations across industries like finance, healthcare, and government. They serve as the backbone for countless organizations and drive their core functionality while delivering unmatched reliability, scalability, and performance. Let’s dive into the resilience and evolution of these technologies with insights from a recently commissioned Vanson Bourne survey, "The State of Mainframe Modernization and Host Connectivity."

Key findings

How the mainframe and COBOL are the backbone of digital enterprises

Mainframes process high transaction volumes with minimal downtime, invaluable for organizations where even a brief disruption can have massive financial ramifications. According to a recent Vanson Bourne survey, over 80% of organizations rate their mainframes as critical to daily operations, while 72% expect to continue relying on them in the foreseeable future.

Mainframe-dependent industries:

• Finance: Mainframes handle millions of daily financial transactions, valued for their unparalleled reliability and security
• Healthcare: These systems process vast amounts of patient data, ensuring compliance with stringent regulatory standards
• Government: COBOL applications facilitate tax payments and social security benefits for millions of citizens

Why mainframe obsolescence is a myth

One of the largest barriers to the modernization of mainframes and COBOL systems is the widespread misconception that they are outdated technologies.

Modernization efforts in action

The Vanson Bourne survey reveals that 80% of organizations are actively pursuing mainframe modernization initiatives. These efforts include adopting cloud-hosted solutions, employing APIs, and incorporating modern development practices to bridge the gap between legacy systems and emerging technologies.

For instance:

• Refactoring applications: 40% of organizations are restructuring COBOL code for smoother performance and compatibility with contemporary systems
• Cloud integration: Over 52% are transitioning COBOL applications to cloud platforms like AWS, realizing benefits such as cost reductions and scalability

How the mainframe impacts digital evolution

Modernization is crucial for maintaining competitiveness and enhancing efficiency, yet it comes with its share of challenges. Many organizations face hurdles such as limited resources, skills gaps, and constrained budgets — 42% citing resource limitations as a significant obstacle. Despite these challenges, 80% are forging ahead, leveraging APIs, adopting modern development practices, and embracing cloud technologies to power their transformation efforts. Here’s how organizations are reimagining the mainframe for the future.

Hybrid cloud solutions

Hybrid cloud models balance the stability of mainframes with the flexibility of cloud innovation. They allow organizations to run core applications on reliable mainframes while scaling operations via cloud platforms.

• 52% of those surveyed plan to transition COBOL applications to the cloud. Hybrid models, which allow applications to operate both on-premises and in the cloud, provide the flexibility and scalability that align with business needs.

Enhanced security protocols

Security modernization is non-negotiable in an era of rising cyber threats. Multi-factor authentication, advanced encryption, and real-time breach detection are critical upgrades.

• 68% of surveyed firms prioritize multi-factor authentication to secure mainframe environments against unauthorized access.
• 52% of organizations emphasize the importance of developing comprehensive strategies when planning upgrades. These strategies should enhance data protection, safeguard against cyber threats, and ensure compliance with regulatory standards.
• 70% of survey respondents identify security as a top priority, emphasizing the importance of modernized systems equipped with advanced encryption and robust access controls.

How to thrive while modernizing your mainframe

Whether your organization is at the beginning of its mainframe modernization initiative or further along in its transformation, consider these strategies for success:

1. Invest in skills development

Attract and retain talent by positioning mainframe and COBOL as cutting-edge technologies. Offer specialized training programs to bridge the knowledge gap and inspire IT professionals to innovate on legacy systems.

2. Adopt agile methodologies

Streamline development cycles by incorporating agile practices. These methods enable teams to rapidly prototype, test, and deploy solutions across legacy systems.

3. Leverage cloud and hybrid architectures

Maximize scalability by exploring cloud migration strategies for non-critical workloads while retaining essential applications on mainframes.

4. Strengthen security frameworks

Implement advanced security measures like data encryption, access control protocols, and real-time threat monitoring to protect enterprise data.

5. Focus on stakeholder collaboration

Engage stakeholders across IT, finance, and operations to align modernization efforts with long-term business objectives.

What lies ahead for the mainframe and COBOL

The future of mainframe computing is not about eliminating legacy systems but about evolving them to stay competitive. Advanced technologies like AI, machine learning, and hybrid cloud will continue to augment these systems, allowing businesses to make more informed decisions and deliver enhanced customer experiences.

Key predictions

• Mainframes will remain integral to mission-critical workloads across industries
• Hybrid cloud adoption will surge as more organizations recognize its cost and operational benefits
• Investments in automation and security will transform how mainframes operate and interact with enterprise systems

By balancing the reliability of heritage systems with the capabilities of modern technology, businesses can unlock new opportunities for resilience and growth.

Building tomorrow's enterprise on today's foundations

Mainframes and COBOL systems are key to both preserving operational stability and driving innovation. Organizations that align modernization strategies with broader business goals will not only survive the digital transformation but thrive within it.

Are you ready to modernize your enterprise technology stack? Explore our tailored solutions for mainframe modernization to ensure your organization remains agile, secure, and competitive in the years to come.

Embrace the future: download our whitepaper

Ready to discover more about the resilience and evolution of mainframes and COBOL? Gain valuable insights and practical strategies for modernization, security, and hybrid cloud approaches by downloading our comprehensive whitepaper, "Embracing the Future: The Resilience and Evolution of Mainframe, Host Access, and COBOL in a Digital Era." Stay ahead of the curve and ensure your organization remains agile, secure, and competitive.

Don't miss out on this valuable resource — take the next step in your digital transformation journey:

Additionally, download the The Rocket Modernization Maturity Model for actionable insights to ensure success in your efforts.

Partner with us

Need guidance with your modernization initiatives? We’re here to help. Our expertise can assist in charting a clear path to a more innovative, agile, and digitally optimized future.