Claves para modernizar el Mainframe-IT Patagonia

Keys to modernizing the Mainframe

The massification of omnichannel strategies, the constant development of new digital products and changes in user behavior impose significant challenges on the financial ecosystem, which is generating an excessive demand on the Mainframe environment.

As a result, the structure of many organizations is operating at very high and risky thresholds, resulting in a constant increase in workload and, consequently, costs.

In this context, many organizations are analyzing different strategies for Modernize the Mainframe.

We know that modernization is inevitableThe issue is defining which path to take.

In this article we discuss: What is the best possible strategy for modernizing the mainframe? What does modernizing and optimizing the mainframe mean? Is modernization necessarily synonymous with completely migrating to other platforms?

What are Mainframes?

“Mainframes are data servers designed for process up to 1 trillion web transactions per day, with the highest levels of security and reliability.”

This is how IBM defines its distinctive features high performance computers, which this year celebrate their “first” 60 years of life.

Over time, they have become the “backbone” platform for key industries such as finance, insurance, tourism, automotive, healthcare, government and naval, among others.

Its high valuation and penetration in these commercial and industrial segments is given, mainly, by its high levels of security, confidence and performance, and its Unmatched Big Data Processing Capability.

“A banking process, for example, analyzes thousands of online transactions per second. This volume of transactionality cannot be interpreted by mid-range systems in the time required,” explains Fernando Biondani, a Mainframe and Cobol specialist.

That's why, Mainframes are hard to replace and large companies and industries that need to process thousands of transactions per second depend on them.

Historia de los Mainframes-IT Patagonia — History of Mainframes: Revisiting the First 60 Years.

Why Mainframes Are Still Used

Due to its age, Mainframes struggle with the brand of being old and outdated. And many times they were predicted to have inevitable death.

However, They survive thanks to their differential attributes and the high complexity and cost of a general migration. In addition, IBM updates the Mainframes every 2 or 3 years, equipping them with modern technology.

Cada día en Mainframe-IT Patagonia — 90% of the world's leading banks use Mainframes.

Leonardo Zrycki, IBM Champion 2024 zSystem, justifies staying in this continuous technological evolution.

“Today’s zSystems have enormous processing power, which is why they continue to be chosen by the world’s leading companies,” he describes.

As an example, some of the distinctive features of the z16 - the latest version of Mainframe - are:

Its processing of thousands of transactions per second.
The possibility that thousands of users with multiple programs can simultaneously access thousands of resources.
Handling terabytes of data in databases.
Its security system is highly reliable.
Hardware data encryption.
Handling high-bandwidth communications.
Online fraud detection through an AI processor.

A Article published on the planetmainframe.com website In addition to the reasons mentioned above, mainframes offer 99.999% availability throughout the year. They also satisfy a need for virtually indefinite data storage and have a pioneering quantum security system, that helps reduce the carbon footprint.

Therefore, the result of the report is not surprising. Kyndryl's 2023 State of Mainframe Modernization Research Report, which reveals that the 90% of organizations using Mainframes consider them an essential asset for their operationsAnd only 11% of respondents plan to completely migrate their assets off the platform.

Modernizing the Mainframe: Why and When

As we mentioned at the beginning, in recent years analyses regarding the What to do with Mainframes.

While it is a growing trend, modernizing the Mainframe does not necessarily mean migrating - in whole or in part - to the cloud. When facing modernization projects, organizations have a variety of options available to them. strategies and procedures that allow you to optimize the existing structure without having to migrate.

In some cases, migrating to the cloud may be the best option. Cloud environments offer a number of advantages, such as scalability, cost reduction and improved security.However, the process can be complex and expensive.

In others, you may choose to modernize the mainframe without migrating to the cloud. This option may be more profitable and less disruptive to the business.

Is it better to keep all of your applications on the platform? Is it better to keep the core systems and migrate other non-critical applications to other environments? Or is it better to move to the cloud permanently?

There is no single roadmap when facing a project to modernize the MainframeEach organization must evaluate all available options and choose the one that best suits its needs.

“For example, IBM proposes a hybrid environment, cloud and with access to the cloud, based on the evaluation of factors such as the cost involved in migrating thousands of programs and the execution times of online and batch programs, among others,” Zricky exemplifies. “However, it must be pointed out that this is a strategic decision that each organization must make based on its specific needs, remembering that the right approach plus the right plan are what define success,” he says.

What is increasingly clear is that Mainframe modernization is urgent, as a result of changes in user habits and demands that have occurred with the digital transformation of recent years, and which is creating an ecosystem increasingly equipped with new technologies and digital products, which impact transactionality and the Mainframe infrastructure.

Modernizing the Mainframe: How to Do It

The Mainframe modernization and optimization path includes a variety of strategies aimed at improve existing systems in the organization, according to current technological standards. In turn, it opens an excellent opportunity for Conduct a review of the processes in search of points for improvement.

By incorporating these more modern approaches, it is possible to achieve legacy applications and systems improve their performance, security and consumption, among other benefits.

The most commonly used approaches are:

Standardization of architecture to promote reuse of capabilities.
Restructuring service architecture with a focus on microservices.
Decoupling the functionalities of the channels or systems in which they are used.
Incorporation of good practices, guidelines and standards for data consumption.
Implementation of process improvements to optimize the critical path.
Updating core banking technology, with a focus on reducing MSU consumption.

With this rejuvenation, Mainframes generate benefits at the operational level that have a direct impact on the efficiency and competitiveness of the organization.

Strategies to modernize the Mainframe

Through our Mainframe Center of Excellence, at IT Patagonia we develop a broad portfolio of services that combines talent, proprietary tools, and effective strategies for the modernization and optimization of the Mainframe.

By integrating exclusive tools, a team with more than 35 years of experience in Mainframe and an effective methodology, we support projects from the initial assessment to the implementation of optimization strategies.

As we mentioned earlier, a roadmap for modernizing the Mainframe may include activities aimed at: Analyze and optimize the critical path of batch processes, update the functional and transactional architecture, and modernize obsolete systems.

Besides, It is key to train the necessary talent and Form teams of experts in managing Mainframe environments.

Estrategias para modernizar el Mainframe-IT Patagonia — Strategies for modernizing the Mainframe.

Benefits of modernizing the Mainframe

Throughout our 35 years of working with the main financial institutions in Argentina, we have experienced extensive benefits derived from the modernization of Mainframe environments.

High quality of service and greater user satisfaction

The user experience is improved by reducing response times and ensuring the level of availability and reliability of operations.
Greater availability and a unique experience are achieved in digital and physical channels.
The digital product procurement process is made easier.
The customer onboarding process is simplified.
It simplifies the management of personalized and real-time customer campaigns.
Improve access and use of customer data.

Greater efficiency and lower maintenance costs

The opportunity for self-management in digital channels with end-to-end processes is growing.
Greater integration with IBM CDC, with reduced consumption on the Mainframe.
The implementation of new self-management cases on a digital channel platform and common components is facilitated.
The time to market for new services and products is accelerated.

SLA Compliance

Thanks to the existence of automated and optimized processes.

Conclusions

Modernizing the Mainframe is an established issue, and most organizations are considering what to do with them, in order to remain competitive and financially healthy.

The technology market offers various alternatives to do so, with more or less integration of Mainframe environments with others in the cloud.

At IT Patagonia we are convinced that, whatever path is chosen, The first step requires modernizing.