Enterprises are adopting long-term, software-led modernization strategies for mainframe environments to improve adaptability while maintaining resilience, according to a new research report published today by Information Services Group (ISG), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens global Mainframes — Solutions report finds that enterprises are shifting from one-time transformation efforts to multi-year modernization programs that prioritize continuity and controlled change. Organizations continue to rely on mainframes for mission-critical workloads, especially in regulated sectors, while integrating them with cloud-native environments. This approach reflects rising demand for flexibility, transparency and auditability as enterprises respond to growing operational complexity and talent shortages.

“Enterprises that rely on legacy systems now prioritize continuity over replacement,” said Bill Huber, partner, ISG Digital Platforms and Solutions. “They seek structured, low-risk transformations that align with long-term operational goals.”

Companies are modernizing mainframes in phases so they remain in operation while evolving over time, ISG says. This approach satisfies the need to avoid disruption in critical environments while adapting to new business requirements. Organizations are embarking on transformation paths that include different modernization patterns applied to specific application portfolios, enabling selective updates rather than full system replacements.

To address talent shortages, enterprises are using automated tools for knowledge extraction and dependency mapping, the report says. These tools help uncover application logic, data relationships and system dependencies that previously were undocumented. Improved visibility enables more accurate planning and reduces risks associated with large-scale changes. As experienced mainframe professionals retire and are increasingly hard to replace, automation is becoming essential for informed decision-making.

Governance and compliance are becoming central to modernization initiatives as enterprises seek greater control over transformation processes, ISG says. Organizations are implementing solutions with built-in validation, testing and rollback features for traceability and reduced operational risk. These capabilities are especially important in regulated industries where operations need to be audited. Enterprises are aligning modernization workflows with strict governance standards to maintain accountability.

“To modernize mainframes successfully, companies need to balance automation with control and oversight,” said Pedro L. Bicudo Maschio, lead author of the report. “Providers play a key role in helping enterprises implement structured approaches that ensure reliability and compliance.”

To learn more, visit: www.isg-one.com

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