Mainframe Services & Solutions - Infosys

ISG Provider Lens Quadrant Report April 2021ExecutiveSectionSummaryNameThe skill shortage myth: Service providers have demonstrated they can attract and trainjobs.). Code re-engineering and code conversion tools provide automation to replaceyoung talents to work on mainframes. The assessed providers employ more than 170,000COBOL with Java. It performs well on any cloud and any relational database. Applicationmainframe programming experts, including 60,000 COBOL programmers. In operations,development tools can handle both languages, providing a smooth transition formore than 53,000 experts keep mainframes running. They have five years of experienceapplication development shops.on average. Only 6 percent of the mainframe operators have more than 14 years ofexperience. However, these numbers need to be put in perspective. COBOL skills are justas rare as SAP. A LinkedIn search returns more than 350,000 people with COBOL skills,288,000 experts in ABAP (SAP programing language), 3 million C# programmers, and anastonishing 10 million people with Java skills.Offshoring is a solution for skills shortage: All participating service providers have globaloperations and COBOL delivery capacity in India. The assumption that a COBOL career isnot interesting to youth generations is valid in the U.S.; however, global companies haveEstimating project cost: Vendor and providers usually mention lines of code (LOC) as thebase for cost estimation (76 percent of the respondents). However, complexity, tools, andsize have an additional impact on pricing. Some statistics include: Modernization and code refactoring cost: US 0.25 to US 2.30 per LOC; projectduration: 2 to 36 months; and project cost: US 100,000 to US 25 million. Transformation and code conversion cost: US 0.50 to US 8.00 per LOC; projectduration: 6 to 60 months; and project cost: US 100,000 to US 50 million.found ways to attract and retain talents to work on mainframes and COBOL.Estimating project viability: Mainframe MIPS measures hardware capacity; it is not usedKnowledge versus innovation dilemma: Knowledge retention can be a challengefor project estimations. However, it provides the first cost estimate for the cloud. A roughfor clients that migrate from COBOL to Java because newly hired programmers donot understand the business and the company may not have a career path to offer toexperienced COBOL programmers. A few solutions that compile COBOL to Java enablethe co-existence of both programmers for a smooth transition, enabling for knowledgetransfer.Java is by far the preferred destination language when moving off the mainframe. Otherlanguages include .NET, C#, Python, and Powershell (the last two for scripting batchestimation is one x86 core in the cloud can replace 50 to 100 MIPS mainframe. Top 100 mainframe clients manage more than 50,000 MIPS, with few of themoperating more than 200,000 MIPS. Very large MIPS client manages 10,000 to 50,000 MIPS. Large clients manage 5,000 to 10,000 MIPS. Mid-sized clients manage 2,000 to 5,000 MIPS.3 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report AprilJuni 20182021 Small clients manage less than 2,000 MIPS. Top mainframe outsourcing providers manage more than 300,000 MIPS each, up tomillions of MIPS. The average outsourced mainframe has 4500 MIPS per client.Executive SummaryConsider self-financing the modernization: Some providers of application managementand support services (AMS) propose deals that include mainframe modernization in theAMS goals. As a result, clients take the maintenance budget they already have and use it tomove applications to low-cost platforms and code that is easier to maintain. Their threeyear deal becomes a transformation program. The U.S. concentrates 60 percent of global mainframe MIPS.Clients running less than 5,000 MIPS should consider migrating their mainframes to thecloud. Any of the migration options are viable and cost-effective, providing short-term ROI.Clients hosting 10,000 MIPS and more can consider MFaaS as the first move for cost savingwhile assessing the modernization and transformation options. Top 100 mainframe clientsrun mainframe farms, not single monoliths. Outsourcing is a good option to reduce cost,while offshoring eliminates the skill shortage risk. Simultaneously, top mainframe clientscan consider clustering their mainframe systems around similar business functions tostudy each cluster separately.Financing mainframe modernization is a challenge: Many companies considermainframe modernization a low return investment. A CIO of a large bank with more than100,000 MIPS responded to our questions saying, “My mainframe is running the bank’ssupport functions, it is certainly not a problem, and I am not going to invest in it, not evento turn it off.” Vendors of modernization tools responded that, in most cases, the CIO seesthe value but considers that the risk is an impediment. Vendors and service providers areworking on making the projects faster, secure, and cost-effective to enable mainframemodernizations.4 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionIntroductionDefinition Simplified IllustrationMainframes have evolved and scaled to handle high transactionper second (TPS) requirements. These machines consolidate manyMainframe Services & Solutions 2021high-performing CPUs (cores) into a single hardware platform. Theirarchitecture distributes tasks to cores that run in parallel, sharingMainframe Modernization ServicesMainframe Transformation ServicesMFaaS – Mainframe-as-a-ServiceMainframe Operationsthe internal bus, memory and I/O, thereby providing superiorperformance. Because of its more than 40 years history, manymainframes today host legacy programming language applicationswritten with COBOL, RPG, Fortran, PL/1, Natural and others.To comply with digital transformation business requirements,clients can modernize their mainframe applications and introduceMainframe Modernization Softwareagile methods as well as automate continuous integration tools. Source: ISG 2021Two alternatives exist in the market, which include modernizationand transformation. Modernization updates legacy code withoutchanging the programming language and introduces automation,5 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionDefinition (cont.)DevOps and modern Agile practices. Mainframe transformation converts legacycode into modern languages to run on modern platforms, including private andThe ISG Provider Lens study offers IT decision-makers the following: Transparency on providers’ relevant strengths and weaknesses A differentiated positioning of providers by segmentsincludes all hardware, software licensing and operations under a pay-per-MIPS A perspective on different marketsarrangement. MFaaS is provided in a shared environment. Clients that need PAYGThis study focuses on the U.S. mainframe market.public clouds.To align with PAYG approaches, service providers have been offering MFaaS, whichbut prefer not to share resources may opt for managed mainframe operations,which enable custom combinations of hardware and licensing ownership.This study focuses on understanding client objectives and assessing providerISG studies serve as an important decision-making basis for positioning, key relationships and goto-market considerations. ISG advisors and enterprise clients use information from these reportsto evaluate their current vendor relationships and potential new engagements.capabilities to deliver mainframe services, including modernization, transformationand supporting toolset.6 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionDefinition (cont.)Scope of the ReportThis study considers four mainframe markets: modernization, transformation,Mainframe Transformation Services: This quadrant assesses application development andas-a-service and operations. To enable clients to select the tools available formaintenance service providers that have evolved their application modernization methodologiesmodernization and transformation, this study includes a mainframe modernizationto refactor, replatform or rewrite legacy programming language applications written with COBOL,software quadrant. This ISG Provider Lens quadrant study introduces fiveRPG, Fortran, PL/1, Natural and others, enabling the same logic and business rules to run on anyquadrants on mainframe services and solutions.platform, including the public cloud.Mainframe Modernization Services: This quadrant focuses on service providersMFaaS – Mainframe-as-a-Service: This quadrant assesses infrastructure service providers thatthat offer legacy application modernization, introducing code repositories such asoffer shared IBM Z mainframes under a pay-per-use contract model. Services include facilities,GitHub or similar options, DevOps integration and testing automation over originalhardware, connectivity, mainframe network management, licensing, operating system andprogramming languages, such as COBOL, adding optimization to enable agility.subsystems, tools, and other services.After the modernization is complete, clients can embrace agile methodologies in thedevelopment and maintenance of applications running on mainframe systems.Mainframe Operations: This quadrant assesses traditional outsourcing providers that have longbeen offering mainframe services. Typical participants employ experienced practitioners to coverlegacy mainframe technologies as well as the most recent mainframe releases. Services can bedelivered on any hosting facility (client- or provider-owned).7 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionProvider ClassificationsThe provider position reflects the suitability of IT providers for a defined market segment (quadrant). Without further additions, the position always applies to allcompany sizes classes and industries. In case the IT service requirements fromenterprise customers differ and the spectrum of IT providers operating in the localmarket is sufficiently wide, a further differentiation of the IT providers by performanceMid Market: Companies with 100 to 4,999 employees or revenues between US 20 million andUS 999 million with central headquarters in the respective country, usually privately owned. Large Accounts: Multinational companies with more than 5,000 employees or revenue aboveUS 1 billion, with activities worldwide and globally distributed decision-making structures.is made according to the target group for products and services. In doing so, ISGeither considers the industry requirements or the number of employees, as well as thecorporate structures of customers and positions IT providers according to their focusarea. As a result, ISG differentiates them, if necessary, into two client target groups thatare defined as follows:8 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionProvider ClassificationsThe ISG Provider Lens quadrants are created using an evaluation matrix containing four segments (Leader, Product & Market Challenger and Contender), and the providers are tChallengerContenderThe Leaders among the vendors/The Product Challengers offer aMarket Challengers are also veryContenders still lack mature productsproviders have a highly attractiveproduct and service portfolio thatcompetitive, but there is stilland services or sufficient depth andproduct and service offering and aprovides an above-average coveragesignificant portfolio potential andbreadth in their offering, but also showvery strong market and competitiveof corporate requirements, butthey clearly fall behind the Leaders.some strengths and improvementposition; they fulfill all requirementsare not able to provide the sameOften, the Market Challengerspotential in their market cultivationfor successful market cultivation.resources and strengths as theare established vendors thatefforts. These vendors are oftenThey can be regarded as opinionLeaders regarding the individualare somewhat slow to addressgeneralists or niche players.leaders, providing strategic impulsesmarket cultivation categories. Often,new trends due to their size andto the market. They also ensurethis is due to the respective vendor’scompany structure, and thereforeinnovative strength and stability.size or weak footprint within thehave some potential to optimizerespective target segment.their portfolio and increase theirattractiveness.9 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionProvider Classifications (cont.)Each ISG Provider Lens quadrant may include a service provider(s) which ISG believes has strong potential to move into the Leader quadrant. This type of provider can be classified as a RisingStar. Number of providers in each quadrant: ISG rates and positions the most relevant providers according to the scope of the report for each quadrant and limits the maximum of providers perquadrant to 25 (exceptions are possible).Rising StarNot InCompanies that receive the Rising Star award have a promisingThe service provider or vendor was not included in thisportfolio or the market experience to become a leader, including thequadrant. There might be one or several reasons whyrequired roadmap and adequate focus on key market trends andthis designation is applied: ISG could not obtain enoughcustomer requirements. Rising Stars also have excellent managementinformation to position the company; the company doesand understanding of the local market. This award is only given tonot provide the relevant service or solution as defined forvendors or service providers that have made significant progresseach quadrant of a study; or the company did not qualifytoward their goals in the last 12 months and are expected to reach thedue to market share, revenue, delivery capacity, numberLeader quadrant within the next 12 to 24 months due to their above-of customers or other metrics of scale to be directlyaverage impact and strength for innovation.compared with other providers in the quadrant. Omissionfrom the quadrant does not imply that the serviceprovider or vendor does not offer this service or solution,or confer any other meaning.10 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionMainframe Services & Solutions - Quadrant Provider Listing 1 of 4Mainframe ModernizationServicesMainframe TransformationServicesMFaaS – Mainframe-as-aServiceMainframe OperationsMainframe ModernizationSoftwareAccenture4Not in4Leader4Not in4Not in4Not inAdvanced4Not in4Product Challenger4Not in4Not in4LeaderAstadia4Not in4Product Challenger4Not in4Not in4Not inAsysco4Not in4Product Challenger4Not in4Not in4Product ChallengerAtos4Leader4Leader4Leader4Leader4Not inBlu Age4Not in4Product Challenger4Not in4Not in4LeaderBMC4Contender4Not in4Not in4Not in4Not inCapgemini4Leader4Leader4Not in4Leader4Not inCognizant4Contender4Product Challenger4Leader4Product Challenger4Not inCPT Global4Contender4Not in4Not in4Not in4Not inDeloitte4Not in4Product Challenger4Not in4Not in4Not inDXC4Leader4Product Challenger4Product Challenger4Product Challenger4Not in11 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionMainframe Services & Solutions - Quadrant Provider Listing 2 of 4Mainframe ModernizationServicesMainframe TransformationServicesMFaaS – Mainframe-as-aServiceMainframe OperationsMainframe r4Leader4Not inFujitsu4Not in4Leader4Not in4Not in4Not inGFT4Not in4Product Challenger4Not in4Not in4Not inGigaSpaces4Contender4Not in4Not in4Not in4Not inGoogle4Not in4Not in4Not in4Not in4LeaderGT Software4Not in4Not in4Not in4Not in4ContenderHCL4Product Challenger4Leader4Rising Star4Leader4Not inHeirloom4Not in4Not in4Not in4Not in4Rising StarHostBridge4Not in4Not in4Not in4Not in4ContenderIBM4Leader4Market Challenger4Leader4Leader4Market ChallengerInfosys4Leader4Leader4Not in4Leader4Not inINNOVA4Not in4Contender4Not in4Not in4Not in12 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionMainframe Services & Solutions - Quadrant Provider Listing 3 of 4Mainframe ModernizationServicesMainframe TransformationServicesMFaaS – Mainframe-as-aServiceMainframe OperationsMainframe ModernizationSoftwareKeyhole4Not in4Contender4Not in4Not in4Not inLzLabs4Not in4Not in4Not in4Not in4Product ChallengerMaintec4Not in4Not in4Not in4Contender4Not inMicro Focus4Not in4Not in4Not in4Not in4Market ChallengerMindtree4Product Challenger4Leader4Not in4Product Challenger4Not inMOST4Not in4Contender4Not in4Not in4Not inMphasis4Product Challenger4Leader4Not in4Contender4Not inNTT (UniKix)4Not in4Not in4Not in4Not in4ContenderNTT DATA4Not in4Contender4Not in4Not in4Not inPSR4Not in4Not in4Contender4Contender4Not inRaincode4Not in4Not in4Not in4Not in4ContenderSoftware AG4Contender4Not in4Not in4Not in4Not in13 2021 Information Services Group, Inc. All Rights Reserved.

ISG Provider Lens Quadrant Report April 2021IntroductionMainframe Services & Solutions - Quadrant Provider Listing 4 of 4Mainframe ModernizationServicesMainframe TransformationServicesMFaaS – Mainframe-as-aServiceMainframe OperationsMainframe ModernizationSoftwareSysperTec (Virtel)4Not in4Not in4Not in4Not in4Market ChallengerTCS4Not in4Leader4Not in4Leader4Not inTech Mahindra4Contender4Leader4Not in4Not in4Not inTmaxSoft4Not in4Not in4Not in4Not in4LeaderTSRI4Not in4Not in4Not in4Not in4LeaderT-Systems4Product Challenger4Product Challenger4Contender4Contender4Not inUnisys4Product Challenger4Not in4Not in4Rising Star4Not inUST4Leader4Rising Star4Not in4Not in4Not inVion4Not in4Not in4Contender4Not in4Not inWipro4Not in4Market Challenger4Not in4Contender4Not in14 2021 Information Services Group, Inc. All Rights Reserved.

Mainframe Services &Solutions Quadrants

ISG Provider Lens Quadrant Report April 2021ExecutiveSummaryENTERPRISECONTEXTMainframe Modernization ServicesThis report to relevant to U.S.-based enterprises, evaluating providers that offer mainframemodernization services.Who should read this report: Marketing and sales leaders should read this report to understand the relativeIn this quadrant report, ISG assesses the current market positioning of providers that offerpositioning and capabilities of service partners that can provide modernization servicesapplication modernization efforts such as introducing code repositories such as GitHub orto enable improved business planning and go-to-market strategy and providers thatsimilar options and DevOps integration and testing automation, including security testing.Enterprises expect and demand solutions (and providers) that reduce millions ofinstructions per second (MIPS) costs, simplify access to data in mainframe environment, andincrease development, deployment, and release timelines.enable improved business planning and go-to-market strategy. Operational leaders and finance leaders should read this report to understand waysto differentiate, engage and manage relationships with mainframe modernizationservice providers that enable optimal return on investment. IT and technology leaders should read this report to understand the strengthsand weaknesses of providers of mainframe modernization services, including theirofferings, capabilities, market presence, strengths, relationships with other mainframeservice providers and the way they employ the latest technologies and capabilities todeliver reliable offerings, in ke

applications. Mainframe transformation deals with options to move all applications off the mainframe. Mainframe-as-a-Service (MFaaS) supplements the modernization path, providing a pay-as-you-go (PAYG) business model. Those that do not plan to modernize consider outsourcing mainframe operations. These four quadrants help clients find the