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Kyndryl Survey Reveals That Mainframe Modernization Projects Deliver 2-3X Return on Investment

1. Kyndryl's survey emphasizes AI's role in modernizing mainframes. 2. Organizations report 288% to 362% ROI on modernization initiatives. 3. 80% of businesses shifted modernization strategies in response to market changes. 4. Respondents anticipate $13 billion in savings and $20 billion in revenue from AI. 5. 70% of firms struggle to find skilled talent for modernization.

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Why Bullish?

The report indicates significant returns on investment and growth potential, historically driving stock performance positively for tech firms.

How important is it?

The article highlights significant modernization efforts, predictive AI impact, and increasing revenues that directly relate to KD's strategic direction.

Why Long Term?

Investments in AI and modernization strategies are likely to yield benefits over time, akin to past tech innovations boosting company valuations.

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Respondents expect AI will drive billions in cost savings and increased revenues The mainframe powers AI innovation across hybrid IT environments , /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today unveiled the results of its third annual State of Mainframe Modernization Survey, illustrating how enterprises are redefining the role of the mainframe in a rapidly evolving digital landscape. The study reveals that organizations are embracing nimble modernization strategies, leveraging AI at scale, and doubling down on mainframe usage in hybrid IT environments—as they navigate skills shortages and regulatory pressures. According to the survey of 500 business and IT leaders, modernization project costs have decreased while return on investment (ROI) has increased. Respondents now report between 288% to 362% ROI on their initiatives, depending on whether they modernize on the mainframe, integrate with cloud, or move workloads to other platforms. In addition, 80% of organizations surveyed have shifted their mainframe modernization strategies in the past year to adapt to changing market dynamics, geopolitical developments, new regulations and emerging technologies. The survey also revealed that AI has switched from a future consideration to a present-day business catalyst: Nearly 90% of organizations responding have implemented or plan to implement generative AI on the mainframe. Respondents expect to achieve substantial results from the use of AI and generative AI—collectively saving $13 billion and forecasting new revenues of $20 billion over the next three years. AI is also helping mitigate skills gaps across the workforce. More than half of organizations (56%) reported increased usage of the platform in the past year as they discover new, high-value roles for it as part of a hybrid environment. "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 and future-ready platform." Respondents also confirmed that modernization success increasingly depends on a workforce skilled in both mainframe and emerging technologies. In fact, 70% of organizations are struggling to find the right multi-skilled talent needed, and 74% continue to rely on third-party providers to support their modernization efforts. Furthermore, 94% of respondents state that their modernization plans are highly influenced by regulatory compliance and that security remains a foundational concern in modernization decisions. The survey shows that, as enterprises work to adapt to the challenges, the mainframe continues to serve as the backbone of their most vital technological capabilities. To learn more about how respondents view mainframe modernization, and the challenges, risks and benefits related to their initiatives, read Kyndryl´s 2025 State of Mainframe Modernization Survey Report. 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 modernizes the complex information systems that the world depends on every day. For more information, please visit: www.kyndryl.com. Kyndryl Press Contact [email protected]  SOURCE Kyndryl WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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