What Customers Need Now
Mainframe modernization in 2026 looks very different than it did even a few years ago. Customers are no longer asking how to “get off the mainframe.” They’re asking how to use it better — how to connect trusted enterprise data to cloud platforms, analytics, and AI without disrupting the systems that already run the business.
Across regulated industries and global enterprises, the most successful modernization programs share one thing in common: they focus on access, integration, and intelligence, not wholesale replacement.
Here are the key trends shaping mainframe modernization in 2026 — backed by industry research — and how VirtualZ helps customers move forward with confidence.
1) The Mainframe Remains a Strategic System of Record
Despite years of predictions about mainframe decline, industry research shows the opposite. Enterprises continue to rely on mainframes for their most mission-critical workloads, especially in regulated industries.
- Kyndryl reports that the majority of enterprises expect their mainframes to remain central to their IT strategy as part of hybrid architectures.
- Source: Kyndryl, State of Mainframe Modernization
- https://www.kyndryl.com/us/en/campaign/state-of-mainframe-modernization
- IBM reports continued growth in mainframe usage driven by security, reliability, and data gravity.
- Source: IBM Z & LinuxONE Strategy Updates
- https://www.ibm.com/z
What customers need: Keep proven systems stable while extending data access to modern platforms.
How VirtualZ helps: VirtualZ enables secure, governed access to mainframe data across hybrid environments — without forcing customers to migrate, rewrite, or disrupt core systems.
2) Data-First Modernization Is Replacing App-First Migration
Analysts increasingly agree that application rewrites are among the riskiest and slowest modernization strategies. As a result, enterprises are modernizing data access first, unlocking value without destabilizing production systems.
- Deloitte identifies data modernization as a prerequisite for digital transformation and AI.
- Source: Deloitte, Tech Trends
- https://www.deloitte.com/us/en/insights/topics/technology-management/tech-trends.html
- Planet Mainframe highlights a growing shift toward data-centric modernization strategies.
- Source: Planet Mainframe, Enterprise IT Trends
- https://planetmainframe.com
What customers need: Faster access to trusted data for analytics, reporting, and AI — without waiting years for application modernization.
How VirtualZ helps: VirtualZ delivers secure, no-code access to mainframe data, allowing customers to modernize data flows first and evolve applications later, on their own timeline.
3) AI Is Driving Urgency — and Trusted Data Is the Bottleneck
AI adoption has moved from experimentation to production. Enterprises now recognize that AI outcomes depend on trusted, governed data — much of which lives on the mainframe.
- IBM reports growing adoption of AI-driven modernization approaches tied directly to enterprise data access.
- Source: IBM, watsonx Code Assistant for Z
- https://www.ibm.com/new/announcements/agentic-ai-for-smarter-mainframe-modernization-with-ibm-watsonx-code-assistant-for-z
- IT Pro notes that AI is accelerating investment in hybrid mainframe strategies rather than replacement.
- Source: IT Pro, Mainframes and Hybrid IT
- https://www.itpro.com/cloud/hybrid-cloud/mainframes-are-back-in-vogue-as-enterprises-ramp-up-hybrid-it-strategies-ai-adoption
What customers need: Reliable pipelines that make enterprise data AI-ready — without fragile custom integrations.
How VirtualZ helps: VirtualZ makes mainframe data available to analytics and AI platforms quickly and securely, giving customers a trusted data foundation for AI initiatives.
4) Hybrid and Multi-Cloud Are Now the Default Architecture
Few enterprises operate in a single environment. Hybrid and multi-cloud strategies are now standard, driven by flexibility, resiliency, and vendor choice.
- Deloitte and IDC both identify hybrid and multi-cloud as the dominant enterprise architecture model.
- Source: Deloitte, Hybrid Cloud Trends
- https://www.deloitte.com
- Open Mainframe Project highlights hybrid integration as a top priority for mainframe customers.
- Source: Open Mainframe Project
- https://openmainframeproject.org
What customers need: Consistent, secure access to data across on-premises systems and multiple cloud platforms.
How VirtualZ helps: VirtualZ is cloud-agnostic by design, enabling customers to access and move mainframe data across AWS, Azure, Google Cloud, and on-prem environments without refactoring or lock-in.
5) No-Code Integration Is Becoming a Requirement
Modernization projects increasingly stall due to skill shortages, custom code maintenance, and fragile pipelines. Enterprises are shifting toward no-code and low-code approaches to reduce risk and speed delivery.
- Open Mainframe Project research highlights automation and reduced skill dependency as critical modernization enablers
- Source: Open Mainframe Project, Hybrid Mainframe White Paper
- https://openmainframeproject.org
What customers need: Repeatable, supportable modernization without custom scripting or specialized skills.
How VirtualZ helps: VirtualZ eliminates the need for custom code, enabling teams and partners to deploy data access and movement solutions quickly and consistently.
6) Security, Governance, and Compliance Must Be Preserved
In regulated industries, modernization cannot weaken security or compliance posture. Customers increasingly require secure integration of mainframe data with analytics, observability, and security platforms without replicating sensitive data or bypassing existing controls.
- Source: VirtualZ Computing, Seamlessly Integrate Mainframe Data with Splunk
- https://virtualzcomputing.com/blog/seamlessly-integrate-mainframe-data-with-splunk/
What customers need: Modernization that preserves existing mainframe security models, supports audit and governance requirements, and enables secure access to data across hybrid environments.
How VirtualZ helps: VirtualZ enables secure, in-place access to mainframe data while enforcing existing security and governance policies — allowing customers to extend visibility and analytics without compromising compliance.
7) Incremental Modernization Is Replacing Big-Bang Projects
Large, monolithic modernization programs have a long history of overruns and failures. Enterprises now favor incremental, low-risk approaches that deliver value early.
- IT Pro reports improved outcomes from phased modernization strategies.
- Source: IT Pro
- https://www.itpro.com
What customers need: A way to modernize safely, one use case at a time.
How VirtualZ helps: VirtualZ supports incremental modernization — customers can start with a single data flow or platform and expand as value is proven.
8) Mainframe Storage Modernization Is Moving to Instant, Hybrid Models
As data volumes grow and storage costs rise, customers are rethinking traditional mainframe storage models. In 2026, modernization efforts increasingly focus on instant access to scalable storage that can extend beyond the data center without disrupting applications.
- Industry trends show growing interest in hybrid and cloud-connected storage architectures to reduce cost and improve flexibility.
- Source: IBM, Hybrid Cloud and Mainframe Storage Strategy
- https://www.ibm.com/z/solutions/hybrid-cloud
What customers need: A way to extend or replace traditional mainframe storage instantly — without application changes, long migrations, or operational risk.
How VirtualZ helps: VirtualZ delivers instant, hybrid mainframe storage, allowing applications to access cloud and on-prem storage through familiar interfaces. Customers modernize storage in hours instead of months, reduce costs, and support incremental modernization with zero disruption.
Modernization in 2026: Progress Without Disruption
Mainframe modernization today is not about abandoning what works. It’s about unlocking value, connecting trusted systems to modern platforms, and doing so safely and pragmatically.
VirtualZ was built for this reality.
We help customers:
- Access mainframe data without disruption
- Modernize incrementally and securely
- Enable analytics, AI, and cloud initiatives faster
Modernization doesn’t have to be risky. With the right approach, it can be simple.
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- Visit our Customer Briefing Center.
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