ISG Provider Lens^® report says organizations are pursuing multi-year modernization programs that prioritize continuity

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) (Nasdaq: III), 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.”

The report also explores other trends in mainframe application modernization, including growing emphasis on hybrid integration and increasing evaluation of AI-enabled automation for controlled transformation.

For more insights into the mainframe-related challenges faced by enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens^® Focal Points briefing here.

The 2026 ISG Provider Lens^® global mainframe solutions report evaluates the capabilities of 24 providers in one quadrant: Mainframe Application Modernization Software.

The report names Amdocs, AveriSource, AWS, Google, Heirloom Computing, mLogica, NTT DATA, Rocket Software, TmaxSoft and TSRI as Leaders in the quadrant.

In addition, CloudFrame is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in the quadrant.

In the area of customer experience, mLogica is named the global ISG CX Star Performer for 2026 among mainframe service and solution providers. The company earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from AveriSource, Amdocs, CloudFrame, Heirloom Computing, FreeSoft and mLogica.

The 2026 ISG Provider Lens^® global Mainframes — Solutions report is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

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Enterprises that rely on legacy systems now prioritize continuity over replacement. They seek structured, low-risk transformations that align with long-term operational goals.