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Best Mainframe Upgrade and Modernization Solutions for 2026

Lindsay Kleuskens

January 8, 2026

Compare the best mainframe upgrade and modernization solutions for 2026. Reduce TCO and secure legacy data with our top vendor reviews. Read the guide.

The best mainframe upgrade and modernization solutions in 2026 include Kyndryl, Micro Focus, and AWS Mainframe Modernization, each offering distinct approaches to migrating legacy IBM z/OS systems to cloud platforms while preserving business logic and ensuring data security. 

Organizations seeking to reduce operational costs while maintaining mission-critical uptime should evaluate solutions based on COBOL compatibility, hybrid cloud support, and integration capabilities.

What Is Mainframe Modernization and Why Does It Matter?

Mainframe modernization is the strategic process of updating legacy mainframe systems (such as IBM z/OS or AS/400) to integrate with modern cloud platforms, APIs, and development methodologies. This transformation allows enterprises to leverage the reliability of legacy infrastructure while adopting the agility of cloud-native environments.

Why is this critical now?

  • Cost Reduction: Organizations modernize mainframes to reduce infrastructure costs associated with MIPS and licensing.

  • Agility: Legacy COBOL applications integrate with cloud-native services to speed up time-to-market.

  • Connectivity: IBM z/OS connects to AWS, Azure, and Google Cloud through APIs, eliminating data silos.

Modernization now extends beyond "ripping and replacing” to optimizing business processes to survive in a digital-first economy.

Key Evaluation Criteria for Modernization Solutions

When evaluating the best mainframe upgrade and modernization solutions, stakeholders must look beyond simple cost metrics. You must assess how a solution handles the complex "aboutness" of your specific infrastructure.

COBOL and Legacy Code Handling

Your solution must handle millions of lines of COBOL without breaking core business logic.

  • Rehosting: Moving applications unchanged to a lower-cost platform.
  • Refactoring: Modifying code to optimize it for the cloud.
  • Replatforming: Moving to a new operating system with minimal code changes.

Cloud Platform Compatibility

The solution must support your target architecture, whether that is a hybrid cloud setup or a full migration to AWS, Azure, or Google Cloud. Multi-cloud support is essential for avoiding vendor lock-in.

Data Security and Compliance

Security cannot be an afterthought. Modernization expands your attack surface by exposing legacy data to the public cloud. You must ensure data security controls, such as encryption and tokenization, remain intact during and after migration.

Note: For a deeper dive into securing these environments, read our Mainframe Security Controls Guide.

Total Cost of Ownership (TCO)

Evaluate the Total Cost of Ownership (TCO), including software licensing, cloud consumption fees, and the cost of specialized talent. Effective modernization projects typically reduce TCO by 30-50% over three years.

Business Continuity and Risk Mitigation

Mission-critical applications require zero downtime. The best solutions offer phased migration paths that ensure business continuity throughout the transition.

Top Mainframe Modernization Solutions Compared

Below are the top solutions for 2026, categorized by their primary strength.

Kyndryl Mainframe Services

Kyndryl is the world's largest infrastructure services provider, spun off from IBM.

  • Best For: Large enterprises requiring end-to-end managed services and deep IBM z/OS expertise.

  • Key Capabilities: Kyndryl offers a "Core Enterprise and zCloud" service that helps modernize applications while managing the underlying infrastructure.
  • Cloud Compatibility: Extensive partnerships with AWS, Microsoft Azure, and Google Cloud.

Micro Focus Enterprise Suite

Micro Focus (now part of OpenText) provides tools to test, build, and deploy mainframe applications on commodity hardware.

  • Best For: Organizations looking to "lift and shift" COBOL workloads to distributed platforms without rewriting code.

  • Key Capabilities: Their Enterprise Server allows mainframe applications to run on Windows, Linux, or UNIX with minimal change.

  • Cloud Compatibility: Strong support for hybrid environments.

LzLabs Software Defined Mainframe

LzLabs offers a unique "Software Defined Mainframe" (SDM) that runs legacy applications in a modern containerized environment.

  • Best For: Innovation-focused companies wanting to move off proprietary hardware entirely without recompiling source code.

  • Key Capabilities: Runs executable binaries directly on x86 Linux servers.

  • Cloud Compatibility: excellent for Kubernetes and container-based deployments.

AWS Mainframe Modernization

AWS Mainframe Modernization is a managed service that simplifies migrating on-premise mainframe workloads to Amazon Web Services.

  • Best For: Teams committed to the AWS ecosystem seeking a cloud-native future.

  • Key Capabilities: Provides tools for both automated refactoring (converting COBOL to Java) and replatforming.

  • Cloud Compatibility: AWS native.

Google Cloud Dual Run

Google Cloud Dual Run allows you to run your mainframe and cloud environments in parallel to ensure exact parity before switching over.

  • Best For: Risk-averse enterprises in highly regulated industries like banking and healthcare.

  • Key Capabilities: Real-time testing that validates the output of the modernized application against the legacy system.

  • Cloud Compatibility: Google Cloud native.

Quick Comparison Table

Solution COBOL Support Cloud Platforms Security Features Best For
Kyndryl Full IBM, AWS, Azure Enterprise-grade controls Large enterprises
Micro Focus Full Multi-cloud DevOps integration Mid-market lift & shift
LzLabs Binaries Any cloud Container-based isolation Linux modernization & innovation
AWS Refactor / Replatform AWS only IAM-integrated security AWS-native shops
Google Dual Run Full Google Cloud Parity testing controls Low-risk migration

Best SaaS Solutions for Mainframe-to-Cloud Workload Orchestration

Orchestration is the glue that holds a hybrid environment together. When moving data from a mainframe to the cloud, you need tools that manage the workflow efficiently.

The best SaaS solutions for mainframe-to-cloud workload orchestration focus on automating dependencies between legacy batch processes and modern cloud triggers. 

These tools ensure that when a job finishes on the mainframe, the subsequent data pipeline in the cloud triggers immediately.

Key entities to look for include API integration, event-driven architecture, and real-time monitoring.

Learn More: Explore the most effective strategies for pipeline security in our guide for mainframe to cloud secure solutions.

SCM Mainframe Modernization Approaches

SCM (Source Code Management) modernization is the shift from legacy library management systems (like CA Endevor or Changeman) to modern DevOps tools like Git.

SCM mainframe modernization enables:

  • Parallel Development: Developers can work on branches without locking files.

  • CI/CD Integration: Automated pipelines can test and deploy mainframe code alongside distributed code.

  • Generative AI: Modern code repositories allow you to use AI tools (like Copilot) to assist in understanding and documenting legacy code.

Integrating mainframe systems into a standard DevOps pipeline reduces the "knowledge silo" between older mainframe developers and new full-stack engineers.

Securing Your Data During Mainframe Modernization

The biggest risk in any modernization project is data exposure. As you open up the mainframe to APIs and cloud analytics, you bypass the traditional perimeter security of the z/OS environment.

DataStealth provides a unique approach to this challenge. Rather than requiring complex code changes on the mainframe or the cloud application, DataStealth sits in the flow of traffic to protect sensitive data in real-time.

For specific details on encryption standards for the coming year, review mainframe encryption 2026 and our complete guide to mainframe security solutions.

How to Choose the Right Modernization Solution

What modernization approach fits my organization?

The right approach depends on your risk tolerance and business goals. If you need immediate cost savings, rehosting is faster; if you need agility, refactoring to microservices is better, though it takes longer.

How long does mainframe modernization take?

Mainframe modernization typically takes 12 to 36 months for enterprise deployments. Timelines vary based on the number of lines of code (LOC), the complexity of dependencies, and the chosen strategy (Big Bang vs. Phased).

What are the risks of mainframe modernization?

The primary risks include business continuity disruptions, data loss during migration, and "scope creep" where project requirements expand uncontrollably. Mitigate these by choosing solutions like DataStealth that secure data without altering code.

Next Steps

Selecting the best mainframe upgrade and modernization solutions requires balancing technical capability with security assurance. As you plan your migration, ensure your data remains protected regardless of where it resides.

Would you like to assess your current mainframe security posture? Discover how DataStealth protects your mainframe data without requiring a single line of code change.

Frequently Asked Questions

This section addresses common questions about mainframe modernization strategies, risks, and return on investment.


1. What is mainframe modernization and how does it differ from simple maintenance?


Mainframe modernization is the proactive transformation of legacy systems to leverage cloud capabilities, modern architectures, and new integration models. In contrast, maintenance focuses solely on keeping existing systems operational through stability fixes and incremental updates. Modernization delivers new business value through agility and innovation, while maintenance prioritizes continuity.


2. Is it better to modernize on the mainframe or migrate to a distributed cloud environment?


The optimal approach depends on workload characteristics and latency requirements. Modernizing in place on the mainframe is ideal for highly transactional, data-intensive workloads that require ultra-low latency and extreme reliability. Migrating to a distributed cloud environment is better suited for workloads that benefit from elastic scalability, rapid iteration, and variable cost structures.


3. What are the 7 R’s of mainframe modernization strategies?


The 7 R’s are Retain, Rehost, Replatform, Refactor, Rearchitect, Rebuild, and Replace. These strategies represent a continuum of modernization options, ranging from keeping systems unchanged (Retain) to fully replacing them with new solutions (Replace), allowing organizations to tailor modernization efforts to risk, cost, and business impact.


4. What is the typical return on investment (ROI) for a mainframe modernization project?


Organizations commonly achieve a 300% to 500% ROI over five years following mainframe modernization. Returns are driven by reduced MIPS consumption, lower software licensing costs, streamlined infrastructure, and significant gains in developer productivity and deployment speed.


5. What are the biggest risks associated with refactoring legacy COBOL applications?


The primary risks include loss of critical business logic embedded in decades-old code and insufficient documentation of system behavior. While automated refactoring tools can reduce risk, manual rewrites often introduce functional gaps or behavioral inconsistencies between legacy and modernized systems.


6. How do I choose the best mainframe modernization vendor for my specific industry?


Select vendors with proven experience and documented case studies in your industry vertical. Ensure they support required compliance standards such as PCI DSS for financial services or HIPAA for healthcare. Reference calls with similarly sized organizations can help validate the vendor’s ability to handle your transaction volumes and regulatory requirements.


7. What are common reasons why big-bang mainframe modernization projects fail?


Big-bang modernization initiatives often fail due to excessive complexity and risk when attempting to migrate all systems at once. Successful organizations adopt phased modernization approaches, incrementally modernizing individual applications or business domains to validate outcomes, reduce risk, and maintain operational stability.


About the Author:

Lindsay Kleuskens

Lindsay Kleuskens is a data security specialist helping enterprises reduce risk and simplify compliance. At DataStealth, she supports large organizations in protecting sensitive data by default, without interrupting user workflows. Her work focuses on PCI DSS scope reduction, preventing client-side attacks, and enabling secure third-party integrations without the security risk. Lindsay regularly shares practical insights on modern data protection challenges and helps organizations navigate evolving compliance standards with confidence.