Agencies are exploring modernization, cloud migration after some systems fell short amid surging need for services during pandemic, ISG Provider Lens report says
Demand for mainframe modernization is growing in the U.S. public sector as governments and institutions struggle to meet changing constituent needs with antiquated systems, according to a new research report published by Information Services Group, a leading global technology research and advisory firm.
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“U.S. public sector organizations are becoming more knowledgeable about mainframe modernization and its benefits”
The 2023 ISG Provider Lens™ Mainframes — Services and Solutions report for the U.S. Public Sector finds that state and local agencies are under pressure to broaden access to mainframe data and deliver improved constituent experiences. The need is especially acute among human services agencies, especially those involved in education and unemployment services.
Constituents’ sudden need for online information and services during the COVID-19 pandemic exposed the limitations of public sector mainframes that had not been significantly updated for years, ISG says. The increased mainframe utilization caused minor system disruptions when systems could not be scaled up quickly enough.
“Lockdowns made digital services mandatory, and the private sector raised expectations for online customer experience,” said Nathan Frey, partner and lead, ISG Public Sector, for the U.S. “The public sector has fallen behind, and its mainframes are on borrowed time.”
While often falling short on performance, existing mainframe applications also burden many agencies with high costs and technical debt, the report says. To access modern capabilities and scalability, most public sector organizations need to rehost mainframe applications in the cloud, compile the code to run them in the cloud without changing the application logic, or rewrite them in modern programming languages.
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Providers of modernization services can help clients take steps such as connecting mainframe applications to cloud-based technologies and adopting agile development, microservices, APIs and AI services. Some public agencies, with an eye to cost savings, are looking to mainframe-as-a-service (MFaaS) providers with pay-as-you-go options.
Recent federal legislation has provided long-needed funding for mainframe modernization, but state and local agencies so far have been conservative about spending this windfall, focusing on budget-neutral projects and ones with immediate cost savings. However, ISG predicts exponential growth in the number and size of mainframe migrations to the cloud over the next three years.
“U.S. public sector organizations are becoming more knowledgeable about mainframe modernization and its benefits,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They are starting to strategize how to gain both flexibility and cost savings, often with the help of mainframe transformation service providers.”
The report also examines several other mainframe trends affecting the U.S. public sector, including widespread IT skills shortages and the growing potential of AI-powered language translation tools.
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