Application Modernization: The Catalyst for Mainframe Modernization

For decades, enterprises have relied on mainframe applications to power mission-critical processes. However, as the digital era demands agility, scalability, and integration with modern technologies, businesses are faced with a pivotal challenge: How do they preserve the reliability of legacy mainframe applications while adapting to innovation? That’s where application modernization comes in.

This blog entry explores why application modernization is the gateway to modernizing mainframe systems, what strategies are available to you, and how modernization efforts, driven by partners like Rocket Software, can futureproof your organization for years to come. Additionally, we have insights from a newly commissioned whitepaper by the Futurum Group, "Application Modernization: Catalyst for Mainframe Modernization," offering a deeper understanding of the critical link between application modernization and mainframe modernization.

What is application modernization and why does it matter?

Application modernization equips legacy applications with a capacity for taking advantage of contemporary tools, platforms, and practices. This can range from introducing APIs for better integrations to running applications on the cloud with modern architectures like containers.

Modernization is your alternative to starting from scratch. It elevates decades of invested business logic to align with emerging demands, like cloud migration, DevOps adoption, and scalable architectures.

For businesses running mainframes, modernization resolves pressing issues like recruiting skilled developers, optimizing costs, and ensuring seamless integration with newer, cloud-native services. The goal is simple: Retain reliability while achieving flexibility.

The state of mainframe applications

Many enterprises still operate on mainframes due to their unmatched reliability and performance. However, these systems face growing challenges:

• Skills shortages: COBOL professionals are retiring faster than replacements are entering the workforce
• Limited agility: Mainframes often lack the agility needed to adapt to new business objectives or integrate with cloud-native tools
• Rising costs: Maintaining aging infrastructure has become increasingly expensive compared to cloud-based systems

Despite these challenges, mainframe applications hold valuable business logic that make modernization an imperative for organizations.

The role of Rocket Software in modernization

Rocket Software, an authority in mainframe modernization, provides mainframe modernization tools and expertise that empower enterprises looking to modernize their applications without massive rewrites. Their approach includes:

• Replatforming applications to run on commodity hardware or the cloud without losing any of the original code
• Providing analysis tools that highlight the business logic and dependencies within applications
• Enabling mainframe applications to operate on modern platforms like Linux or containers, while preserving their COBOL or PL/I codebase

This expertise allows businesses to:

• Maintain the integrity of their systems
• Reduce migration risks
• Leverage modern DevOps practices without compromising legacy logic

Strategies for modernizing mainframe applications

Modernization is not a one-size-fits-all process. These are just a couple of key strategies that enterprises consider when looking to update their applications most effectively:

1. Replatforming

Replatforming moves mainframe applications to modern environments like the cloud or distributed systems, keeping the core code intact while enabling scalability and flexibility.

2. Refactoring or rewriting

This approach is suited for smaller applications. Enterprises rewrite their code to align entirely with modern architectures like Java or .NET. This upgrade in integration may also include an uptick in risks and costs.

By tailoring strategies to a business’s unique needs, modernization efforts balance agility with practicality.

The benefits of application modernization for enterprises

Modernization delivers measurable gains that extend beyond IT, directly impacting organizational growth. 

• Enhanced agility: Modernized applications integrate seamlessly with cloud-native platforms, enabling businesses to pivot faster in response to market needs
• Cost optimization: Shedding the expenses of aging infrastructure by integrating scalable public clouds can significantly reduce operational costs
• Recruitment advantages: By modernizing applications and processes, organizations attract millennial and Gen Z developers familiar with Agile, DevOps, and cloud tech — filling gaps left by retiring COBOL programmers
• Improved performance: Modern architectures ensure faster response times, increased uptime, and an overall better user experience for employees and customers alike

Addressing skills gaps through modernization

The shrinking talent pool of developers trained in older technologies like COBOL is a significant and costly challenge for mainframe-heavy businesses. By modernizing development environments — such as introducing contemporary IDEs like Visual Studio Code — organizations bridge the gap between old and new skill sets.

Incorporating Agile workflows and DevOps culture into mainframe modernization also fosters an attractive environment for younger talent that thrives on collaboration and innovation.

Real-life examples of application modernization

Consider these case studies of businesses modernizing their mainframe applications with Rocket Software’s tools:

• AG Insurance (Belgium)

Belgium's largest insurer used Rocket Enterprise Suite to replatform 80 million lines of COBOL code. The project modernized their IT systems and enhanced agility for their three million customers.

• FIS (USA)

FIS modernized their InvestOne application, originally built in the 1980s, using Rocket’s Visual COBOL technology. By avoiding a full rewrite, FIS saved time, reduced costs, and optimized its core financial processes.

These examples highlight how modernization preserves mission-critical functionality while enabling enterprises to evolve.

Looking forward: The future of mainframe modernization

As businesses prepare for the next wave of technology — AI, advanced automation, and hybrid cloud adoption — modernized mainframes will play a central role. Here are some predictions for the future of mainframe modernization: 

• Wider hybrid cloud adoption

Enterprises will increasingly use hybrid solutions, running some workloads on mainframes while integrating others with cloud services for maximum performance and cost efficiency.

• AI-powered insights

AI will drive smarter decision-making by analyzing application performance data and identifying optimization opportunities.

• Automated support

Natural Language Processing (NLP) will improve application management through conversational interfaces, simplifying tasks like debugging or dependency mapping.

By combining proven mainframe reliability with these innovations, modernization ensures legacy systems remain future-ready.

Why modernization is a must for organizational growth

Application modernization is no longer optional for enterprises navigating today’s fast-evolving tech landscape. It transforms legacy systems into dynamic assets that drive agility, cost savings, and innovation.

Rocket Software provides solutions that modernize mainframe applications without disruption to your operations, balancing innovation with reliability, securing your legacy technology, and setting the stage for future growth.

Partner with Rocket Software to create a modernization roadmap tailored to your needs.

Learn more

Looking to dive deeper into the world of application modernization and its impact on mainframe success? We've got you covered! Check out the Futurum and Rocket whitepaper, Application Modernization: Catalyst for Mainframe Modernization, where you'll discover strategies, real-life examples, and expert insights on driving agility and growth through modernization. Download the whitepaper today and unlock the potential of application modernization for your enterprise.