Dive Brief:
- AWS is expanding application modernization options in collaboration with IBM as enterprises pursue hybrid cloud strategies with interoperability between AWS cloud computing services and IBM Z mainframes, AWS said in a blog post.
- Alongside IBM’s Think 2026 conference, AWS identified five patterns supporting enterprises taking a hybrid cloud approach, including real-time business data exchange between core mainframe applications and AWS following IBM’s $11 billion acquisition of Confluent, a data streaming platform. Enterprises can also synchronize mainframe data with AWS, enabling cloud-based analytics and AI model access across trusted mainframe data, the blog said.
- “A hybrid strategy that includes IBM Z and AWS allows for rapid AI-[led] innovation that makes it easier to access applications and data without significant changes, and optimizes the costs of running or extending applications,” AWS said in the blog post. “Together, this approach maximizes business agility and return on investment.”
Dive Insight:
Costly legacy mainframe modernization projects are taking a turn as the latest AI developments spur vendors to roll out tools and initiatives simplifying the process.
AWS’ expanded collaboration with IBM is the latest example of vendors attempting to bring critical legacy infrastructure into the modern era, making it easier for enterprises to speed modernization and gain more value from core platforms.
Capgemini last year released a code conversion toolkit powered by generative and agentic AI for refactoring COBOL applications. Rocket Software also last year launched a suite of AI-driven modernization services that includes mainframe anomaly detection automation.
Hyperscalers AWS, Microsoft and Google have their own products aimed at mainframe application modernization, and enterprise customers are taking advantage. Toyota Motor North America tapped AWS Transform, an AI agent service that became generally available a year ago, to help automate its mainframe migration, leading to the modernization of more than 40 million lines of COBOL code to Java in half the time it would’ve taken without AI assistance, according to AWS.
Even IBM, the biggest player in the mainframe space, has made strategic investments to help accelerate mainframe application modernization, including AI-assisted modernization through watsonx Code Assistant for Z or IBM Bob, CEO Arvind Krishna said during the company’s Q1 2026 earnings call in April. IBM Bob became generally available last month.
“Enterprises are investing in capabilities that increase resiliency, productivity and accelerate growth. They are modernizing core systems,” Krishna said during the call. “They are scaling AI and they’re making deliberate choices about where workloads should run and who controls the infrastructure underneath them.”
AI will run across public, private and sovereign clouds, as well as on premises, with mainframes remaining a critical enterprise infrastructure component, which is why IBM has taken steps to position itself as a hybrid cloud and AI platform company, Krishna said.
