Kyndryl Survey Highlights Growing Returns from Mainframe Modernisation and AI Integration

Kyndryl’s 2025 State of Mainframe Modernisation Survey of 500 business and IT leaders finds mainframe projects now deliver 288–362% ROI. Nearly 90% plan or use generative AI on mainframes, projecting $13B in savings and $20B in new revenue. 80% updated strategies, 70% face talent gaps, and 94% cite regulatory compliance as critical, highlighting the mainframe’s key role in hybrid IT.

A new global survey conducted by Kyndryl (NYSE: KD) shows that mainframe modernisation projects are delivering significantly higher financial returns while playing an increasingly central role in enabling artificial intelligence (AI) across hybrid IT environments.

The 2025 State of Mainframe Modernisation Survey, Kyndryl’s third annual study, captures insights from 500 business and IT leaders worldwide. The findings reveal how enterprises are adapting their strategies to meet changing market conditions, regulatory demands and technological advances.

Strong ROI from mainframe modernisation

According to the survey, organisations are reporting a sharp increase in returns from mainframe modernisation initiatives. Depending on the approach, whether modernising on the mainframe, integrating with cloud platforms, or migrating workloads elsewhere—respondents report between 288% and 362% return on investment (ROI).

At the same time, modernisation costs are decreasing, making these projects more cost-effective and attractive for enterprises looking to balance innovation with operational efficiency.

AI moves to the core of business strategy

The study underlines how AI has shifted from being a future opportunity to a present-day business driver. Nearly 90% of surveyed organisations have either implemented or plan to implement generative AI on the mainframe.

Respondents forecast tangible outcomes from these deployments: an estimated $13 billion in cost savings and $20 billion in additional revenues over the next three years. AI is also being applied to address skills shortages by enhancing productivity and supporting workforce capabilities.

More than half of respondents (56%) report increased use of the mainframe in the past year, as organisations identify new, high-value roles for the platform within hybrid environments.

Evolving strategies and workforce challenges

The survey finds that 80% of organisations have revised their mainframe modernisation strategies in the past year. Factors such as geopolitical developments, emerging technologies, and new regulatory requirements are driving these changes.

Despite this progress, the workforce challenge remains significant. Seventy per cent of organisations say they face difficulties finding talent with both mainframe and emerging technology expertise. As a result, 74% continue to rely on third-party providers to support their modernisation programmes.

Furthermore, the survey highlights that 94% of respondents view regulatory compliance as a major factor shaping their modernisation decisions, with security considerations remaining central to all initiatives.

Kyndryl emphasises the importance of the mainframe as a strategic asset in the digital enterprise.

“The mainframe has become the AI-fuelled catalyst of hybrid enterprise strategies, delivering billion-dollar returns while powering innovation for customers,” said Hassan Zamat, Global Practice Leader for Core Enterprise at Kyndryl. 

“Organisations are taking a much more pragmatic approach to modernisation to drive better business outcomes and incorporate new technologies. Working with the right partners can help them build a resilient and future-ready platform.”

A backbone for the future

As enterprises navigate challenges ranging from skills shortages to compliance requirements, the mainframe continues to serve as the backbone of their most critical operations. The findings of Kyndryl’s latest survey reaffirm the platform’s relevance and adaptability in an evolving technology landscape.

To explore the full insights, challenges, risks, and benefits of mainframe modernisation, Kyndryl’s 2025 State of Mainframe Modernisation Survey Report is available for further reading.

About Kyndryl

Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world’s largest IT infrastructure services provider, the company designs, builds, manages and modernises the complex information systems that underpin daily operations across industries.