Mainframe Modernization Services Market
Growing Adoption of Cloud Computing to Fuel Mainframe Modernization Services Market Growth During Forecast Period
Cloud computing adoption is a strategic move by companies to reduce costs, mitigate risks, and achieve scalability of database functions. Industries such as healthcare, marketing & advertising, retail, finance, and education are highly benefitted from the adoption of cloud computing. For instance, due to digital and social consumer behavior and the rising demand for accessible and secure electronic health records (EHRs), hospitals, clinics, and other medical institutions are increasingly utilizing cloud computing for document storage, marketing, and human resources management. In addition, efficient expense management, human resources, and customer communications are the key business needs of financial organizations, driving the need for cloud computing for placing their email platforms and marketing tools on the cloud. According to the Flexera 2022 State of the Cloud Report, the Americas has 63% heavy cloud users, 23% moderate cloud users, and 14% light cloud users.
Modernized mainframe systems seamlessly integrate with other systems, applications, and data sources, enabling the creation of new business models and revenue streams. Additionally, modernization helps companies address the challenges of an aging workforce, reduce maintenance and operational costs, and improve system performance and scalability. In December 2022, AWS partnered with IBM to drive the mainframe modernization. Through this partnership, organizations bridge the gap by leveraging a hybrid strategy (e.g., mainframe modernization), integrating on-premises mainframe with cloud development, and beginning to leverage the scalability and agility benefits of cloud computing.
Mainframe Modernization Services Market: Industry Overview
The mainframe modernization services market is segmented on the basis of services, enterprise size, and end-use industry. Based on services, the mainframe modernization services market is segmented into application modernization, cloud migration, and data modernization. By enterprise size, the market is bifurcated into SMEs and large enterprises. In terms of end-use industry, the market is segmented into IT and telecom, BFSI, retail, healthcare, government, media and entertainment, manufacturing, education, and others. Geographically, the mainframe modernization services market is segmented into five regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South America.
In terms of revenue, North America dominated the mainframe modernization services market share, followed by Europe and APAC. According to the International Trade Administration, the US accounts for one-third of the US$ 5 trillion worldwide information technology (IT) market, making it the world’s largest. In addition, the IT sector supports the employment of 12.1 million people and contributes ~US$ 1.9 trillion to the US value-added GDP. Furthermore, according to CompTIA, there are over 557,000 software and IT service companies in the US. As per the International Trade Administration, the ICT industry in Canada comprises more than 43,200 businesses. The majority of these companies operate in the computer services and software sectors. The industry is primarily made up of small businesses, with ~35,500 employing fewer than ten people. There are nearly 100 significant companies, including subsidiaries of international multinational corporations, that employ more than 500 people. Having such a big IT industry in the region is raising the need for mainframe modernization services. According to the Canada Health Infoway, Canadians are embracing digital health services, and it is also estimated that the demand for digital healthcare services will increase in the coming year. According to an online survey conducted in November 2022 with 12,445 Canadians, 94% of Canadians were interested in accessing digital health services. Thus, growing digitization in the healthcare sector is projected to raise the need for mainframe modernization services.
Mainframe Modernization Services Market: Competitive Landscape and Key Developments
Accenture; Capgemini; Cognizant; Amazon Web Services, Inc.; Infosys Limited; Fujitsu; HCL Technologies Limited; Wipro Digital; IBM; Ensono; Tata Consultancy Services Limited; Atos SE; Hexaware Technologies Limited; Microsoft; DXC Technology Company; EPAM Systems, Inc.; Innova Solutions; Oracle; Mphasis; and Software AG are among the leading players profiled in the mainframe modernization services market report. Several other essential market players were analyzed for a holistic view of the market and its ecosystem. The mainframe modernization services market report provides detailed market insights, which can help the key players strategize their market growth. As per the company press releases, below are a few recent key developments:
- Accenture Federal Services had been awarded the US Army’s Enterprise Application Modernization and Migration (EAMM) contract with a potential value of US$ 127 million. Accenture Federal Services will use its cloud migration and modernization approach to perform large-scale application assessments, migrations, and modernizations to the cloud.
(Source: Accenture, Press Release, May 2024)
- Fujitsu announced the Japan market launch of its successful modernization automation service “Fujitsu PROGRESSION,” building on a proven track of over 50 global use cases in which it migrated legacy systems to the Fujitsu mainframe “GS21 Series.” “Fujitsu PROGRESSION” is a service that automatically converts script written in COBOL into Java or C# while preserving the functionality of applications built on mainframes. It delivers modernization services for end-to-end support, from drafting migration plans based on customer systems audits to asset migration through to testing and operation.
(Source: Fujitsu, Press Release, May 2024)
