72% of Brazilian companies see mainframe modernization as a strategy to accelerate digital transformation.
Kyndryl (NYSE: KD), a global leader in mission-critical technology services, released the results of its third annual survey on the state of mainframe modernizationThis illustrates how companies are reimagining the fundamental role of the mainframe in a rapidly evolving digital landscape. The study reveals that the modernization of mainframe systems is consolidating as a driver of return on investment (ROI) in technology in Brazil, thanks to the adoption of agile modernization strategies, leveraging AI at scale, and doubling the use of mainframes in hybrid IT environments.
The research surveyed 500 technology leaders worldwide, including 60 in Brazil, and analyzed metrics of usage, performance, and maturity in mainframe environment transformation initiatives. The data indicate concrete signs of progress. Almost half of Brazilian organizations (47%) state that they already have a formal strategy for modernizing their mainframes. These results show that mainframes are ceasing to be perceived merely as legacy systems and are beginning to be treated as strategic platforms for innovation.
The research also shows that the costs of the modernization project have decreased, while the return on investment has increased: in Brazil, organizations observe a substantial and growing ROI with mainframe modernization, ranging from 354% for those modernizing applications on the mainframe to 243% for those migrating workloads from the mainframe to other platforms.
Furthermore, in Brazil, 78% of organizations changed their strategies. mainframe modernization Last year, companies adapted to changes in market dynamics, geopolitical developments, new regulations, and emerging technologies. Half of the companies (49%) claim to have accelerated modernization processes, and 68% of them saw an increase in mainframe usage during the same period. The main reasons for the increased use of mainframes were integration with modern technologies such as cloud computing and AI (51%), demands for greater security and governance (49%), and growth in business volume (49%). On average, Brazilian companies run approximately 54% of their mission-critical applications in a mainframe environment.
The research also revealed that AI has shifted from a future consideration to a current business catalyst. Nearly 90% of organizations in Brazil have implemented or plan to implement generative AI. on the mainframeAnd when asked about the ROI related to the use of AI on the mainframe, the Brazilian expectation is 129% of return, exceeding the global average of 83%. AI is also helping to mitigate skills gaps across the workforce. In Brazil, more than half of organizations (68%) reported increased use of the platform last year as they discover new high-value functions for it as part of a hybrid environment.
“The transformation of mainframes is no longer just a technological issue: today it is a strategic driver for innovation and competitiveness for Brazilian companies,” said Spencer Gracias, General Director of Kyndryl Brazil. “They are adopting a much more pragmatic approach to modernization to generate better business results and incorporate new technologies. Working with the right partners can help them build a resilient and future-ready platform.”
Respondents also confirmed that the success of modernization increasingly depends on a workforce skilled in legacy and emerging technologies. In Brazil, 621% of organizations are struggling to find the necessary talent, and 68% continue to rely on third-party vendors to support their modernization efforts. Furthermore, 95% of Brazilian respondents state that their modernization plans are heavily influenced by regulatory compliance and that security remains a fundamental concern and a key factor in modernization decisions.
Research shows that as companies are able to adapt to these challenges, the mainframe continues to serve as the backbone of their most vital technological resources. To learn more about how respondents view mainframe transformation and application modernization, as well as the challenges, risks, and benefits related to their initiatives, read the [link/article/reference]. Kyndryl's 2025 Mainframe Modernization Survey Report.
About Kyndryl
Kyndryl (NYSE: KD) is a leading mission-critical technology services company, offering consulting, implementation, and managed services to thousands of clients in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages, and modernizes the complex information systems the world depends on every day. For more information, visit www.kyndryl.com.
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