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For Canadian Mainframe Users, Cloud is the Goal

Many enterprises experiencing disruption are eyeing the costs and complexities of migrating legacy applications and data, ISG Provider Lens™ report says

TORONTO–(BUSINESS WIRE)–$III #ISGProviderLens–Mainframes are prime targets for digital transformation at many Canadian enterprises that want to increase data access, agility and automation, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Mainframes – Services and Solutions report for Canada says a cloud migration trend that began in response to the COVID-19 crisis in 2020 has accelerated. Many companies disrupted by the pandemic have sought to migrate on-premises infrastructure to public clouds, and one of the most common challenges has been mainframe modernization.

“Mainframes, in some ways, have become a stumbling block to digital transformation,” said Victor Medeiros, market leader, ISG Canada. “Cloud migration of legacy applications promises higher performance and lower costs over time, but it is a complex, expensive process.”

Canadian government IT decision-makers have recognized the value of modernization and cloud adoption for cybersecurity, better government services and protection of citizens’ personal data, the report says. While there are fewer service providers to choose from in Canada, enterprises there are increasingly seeking help with transformation.

Most Canadian enterprises have three goals with mainframe modernization, the report says: making mainframe data accessible through cloud applications, improving agility using DevOps methods and automating operations with self-service and provisioning.

The right strategy to reach these goals depends on the state of an enterprise’s digital transformation, ISG says. Companies in the early stages of digitalization may keep mainframe applications intact but run them on outsourced data centers or seek mainframe-as-a-service (MFaaS) engagements. More advanced firms may modernize their legacy COBOL applications to integrate mainframe data with modern solutions. The most aggressive modernizers use automated tools to convert mainframe applications to run in the cloud.

Preparing mainframe applications to run in the cloud can take months or years. Service providers can help make such projects feasible by helping clients plan phased transformations in which each stage delivers tangible results, ISG says.

“Some enterprises question whether the benefits of migration will compensate for the cost over time,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Companies should consider self-financing modernization by taking savings from one phase to fund the next.”

The report offers an overview of time and cost estimates for application transformations, a description of automated tools commonly used in the process, and other details of how Canadian enterprises are pursuing mainframe modernization.

The 2022 ISG Provider Lens™ Mainframes – Services and Solutions report for Canada evaluates the capabilities of 45 providers across five quadrants: Mainframe Modernization Services, Mainframe Application Modernization and Transformation Services, Mainframe as a Service (MFaaS), Mainframe Operations, and Mainframe Application Modernization Software.

The report names Capgemini, Cognizant, Infosys, Kyndryl and TCS as Leaders in three quadrants each and Atos and HCL as Leaders in two quadrants each. Accenture, Advanced, Astadia, AWS (Blu Age), CGI, Google, Micro Focus, Mindtree, TmaxSoft and Wipro are named as Leaders in one quadrant each.

In addition, Heirloom and Mphasis are named as Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in one quadrant each.

A customized version of the report is available from Kyndryl.

The 2022 ISG Provider Lens™ Mainframes – Services and Solutions report for Canada is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Contacts

Press Contacts:


Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Erik Arvidson, Matter Communications for ISG

+1 617 874 5214

isg@matternow.com

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