Modernizing Mainframe Workloads in Banking Industry: Embracing the Power of the Hyperscalers

The banking industry has long relied on mainframe systems to handle critical financial transactions. However, as technology advances and digital transformation becomes imperative, organizations in Israel and across the world are faced with the challenge of modernizing their mainframe workloads.

Banks must adopt a holistic approach to modernize their mainframe systems, incorporating a clear roadmap that encompasses necessary steps for success, such as embracing a hybrid approach. By carefully selecting the right platform and the right workloads, a hybrid approach enables banks to benefit from the full strengths of both the cloud and the mainframe.

As corporate leaders consider this alternative, we see governments around the world increasingly embracing the hybrid cloud model, leveraging the capabilities of hyperscalers to bring greater efficiency in services and security for its citizens. In fact, the government of Israel – a leader in digital transformation – has been working with Amazon Web Services (AWS) and Google on its nationwide Project Nimbus to provide such public cloud services.

Against this backdrop and based on our decades of experience supporting the banking sector, Kyndryl works alongside hyperscalers and other alliance partners in modernizing and integrating mainframe workloads in hybrid cloud environments. With the mainframe being a significant foundation for the banking sector, this article will focus on how banks can leverage the power of the Hyperscalers to achieve their modernization goals.

The Importance of Mainframes in Banking:

Mainframes have been the backbone and core of the banking industry for decades, providing robust and reliable computing power to handle high-volume transactions. Despite predictions of their demise, mainframes continue to play a crucial role in banking operations. Their unparalleled performance, scalability, and security make them an ideal choice for processing mission-critical transactions.

Modernizing Mainframe Workloads:

To adapt to the digital era, banks are increasingly looking at ways to modernize their mainframe workloads. However, they often do not know how to position the mainframe within their overall IT strategy or do not have the mainframe skills. As a result, the mainframe is often kept without it being fully leveraged or enabling digital initiatives - or workloads can be placed on the mainframe that should belong on cloud platforms. As they start their hybrid cloud journey, banks need to decide if they want to maintain, invest in or divest the mainframe, and then take a holistic approach to mainframe modernization to align their overall IT modernization strategy to their business outcomes.

In Israel, Kyndryl works closely with leading Hyperscalers to help customers on their transformation journey.

How does Kyndryl - in collaboration with the Hyperscalers - offer compelling capabilities for modernization?

We meet customers where they are - whether they want to modernize applications and data on the mainframe, integrate them into a hybrid cloud including the hyperscalers’ public cloud, or move them off the mainframe:

·        Modernize on the mainframe by optimizing existing applications, data and infrastructure.

·        Provide an integrated, consistent DevOps or DevSecOps solution for application developers, wherever they may be building applications for the hybrid cloud.

·        Integrate applications and data with public cloud providers to enable faster development of new business insights as part of a customer´s cloud journey.

·        Move applications, workloads, and data from mainframe to cloud when required to support the business and technology strategy.

Each platform has its unique value – so we deliver a holistic and systematic approach for end-to-end hybrid cloud services to serve customers wherever they are on their transformation journey.

Future-proofing Banking Operations:

Kyndryl’s collaboration with AWS and Google Cloud Platform (GCP) for mainframe modernization can serve as a catalyst for banks, enabling them to future-proof their operations and unlock numerous benefits. They can harness the scalability and agility of cloud platforms, reduce operational costs, and drive innovation by leveraging advanced technologies, while continuing to rely on the performance, reliability and security of the mainframe if they choose to integrate it with the cloud. Kyndryl offers comprehensive skills and expertise to ensure a successful modernization journey, whatever approach customers would like to take.

In conclusion, the future of the mainframe in the banking industry lies in its modernization and integration with cloud platforms. In Israel, Hyperscaler platforms have never been more important, especially with the government's strategic move towards a hybrid cloud model, and the need for more flexibility, scalability and efficiency. This way, banks can stay ahead in the digital banking landscape, drive innovation, and meet the evolving demands of their customers while maintaining the reliability and performance that mainframes have long been known for.