Kyndryl Survey: Mainframe modernization now delivers 2–3X ROI, unlocking AI-driven business value
Bengaluru, September 10, 2025 — Far from being a legacy relic, the mainframe is emerging as a catalyst for AI-powered hybrid IT strategies, according to Kyndryl’s third annual State of Mainframe Modernization Survey. The study underscores how enterprises are rethinking modernization, cutting costs, and generating stronger returns than ever before.
The survey of 500 global business and IT leaders reveals that modernization projects are now delivering between 288% and 362% ROI, depending on whether organizations modernize directly on the mainframe, integrate it with cloud, or move workloads to other platforms. This comes as 80% of enterprises have shifted their modernization strategies in just the past year in response to regulatory shifts, geopolitical pressures, and the rapid adoption of AI.
AI has emerged as the new growth engine for mainframe strategy. Nearly 90% of respondents say they have already implemented or are planning to implement generative AI on the mainframe. Collectively, organizations expect AI to generate $13 billion in cost savings and $20 billion in new revenues over the next three years. AI adoption is also proving instrumental in closing the persistent skills gap, with 56% of enterprises increasing their mainframe usage in the past year to support hybrid workloads.
“The mainframe has become the AI-fueled 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. “Organizations are taking a much more pragmatic approach to modernization to drive better business outcomes and incorporate new technologies. Working with the right partners can help them build a resilient, secure and future-ready platform.”
Yet the modernization journey isn’t without hurdles. Seventy percent of organizations report difficulty in finding multi-skilled talent, while 74% rely heavily on third-party providers to support modernization projects. Compliance also looms large, with 94% of respondents citing regulatory requirements as a key driver of their modernization roadmaps, and security continuing to shape every decision.
The findings reinforce a critical shift: modernization is no longer about replacing the mainframe, but about elevating its role as the backbone of AI innovation and hybrid IT—a role that is now returning 2–3X the value for enterprises worldwide.