Another important finding is that mainframe modernization plans are more dynamic than in the past due to changing market conditions. 80% of organizations reported that their modernization strategies have changed over the past year.
Mainframe modernization can take several forms. Enterprise customers can hold data on mainframes, migrate workloads, and create hybrid environments.
Among organizations that said they have shifted their modernization approach, Kyndryl found that 43% are focusing on modernizing directly to the mainframe, and 50% are moving towards a hybrid strategy. Of those moving towards a hybrid IT approach, 34% prioritize integration with cloud platforms, and 16% increase the pace of mobile applications from the mainframe. Only one of the 500 respondents reported plans to move completely out of the mainframe.
Reasons for changing migration strategies vary widely among respondents, including factors such as successful previous projects, budgetary shifts to new technologies, and external factors such as geopolitical, macroeconomic, and regulatory concerns.
Cost is another motivation. The average cost of modernizing a mainframe has dropped from $9.1 million in 2024 to $7.2 million in 2025, with the ROI of such a move more than doubled.
Other trends mentioned in the Mainframe Modernization Report include:
