The Latest Secret Behind AI Success: Helping Mainframes Make a Comeback.

In an era dominated by cloud computing and sleek data centers, an unexpected player is emerging as a powerhouse for generative AI workloads: the trusty mainframe. This surprising trend is reshaping enterprise computing and challenging long-held assumptions about the role of mainframes in modern IT infrastructure.

Picture this: Nearly 9 in 10 enterprises are now planning to deploy generative AI in mainframe environments. Yes, you read that right – those massive computers that have been the backbone of business operations for decades are now at the forefront of AI innovation.

Why are companies turning to these digital dinosaurs for cutting-edge AI? Let’s break it down:

Tried-and-True Data Security

Mainframes are like the Fort Knox of enterprise data. They house an organization’s most critical and sensitive information. By running AI workloads directly on these systems, companies can:

• Avoid the security risks of cloud data transfers
• Ensure compliance with strict data privacy regulations
• Keep their digital crown jewels under lock and key

High Performance Computing That Packs a Punch

Mainframes are the heavyweight champions of computing. They’re built to handle high-volume, mission-critical workloads, making them perfect for the compute-intensive tasks of generative AI. Recent models even come with AI-optimized processors – talk about teaching an old dog new tricks!

Dependable Cost Effectiveness

For companies already invested in mainframe infrastructure, using these systems for AI can be more cost-effective than cloud alternatives. Cloud costs for AI workloads can be as unpredictable as a rollercoaster, while mainframes offer a more stable ride.

Seamless AI Integration: No Square Pegs in Round Holes

Many enterprises rely on mainframes for core business operations. Running AI workloads on these systems allows for smooth integration with existing processes, enabling real-time AI insights based on operational data.

It’s like giving your business a brain upgrade without major surgery.

Mainframe dependence across industries shows strong growth trends.

Check out these eye-opening statistics about how on-site mainframes fit into the cloud era:

• 67 out of Fortune 100 enterprises rely on mainframe systems
• This includes 45 of the top 50 banks and 7 of the top 10 retailers
• Mainframe usage has skyrocketed by 350% over the past decade
• 62% of professionals see mainframes as a platform for long-term growth and new workloads

But here’s where it gets really interesting:

• In Q3 2024, IBM’s overall revenue grew by just 1% year-over-year
• However, their Z16 mainframe computer sales bucked the trend, growing 6% in Q2
• Looking ahead, IBM anticipates a whopping 18% mainframe sales growth in 2025 with the launch of the new Z17 model

These numbers tell a compelling story: while overall growth might be modest, mainframes are experiencing a renaissance, particularly in the realm of AI workloads.

This isn’t science fiction – it’s happening now, enabling real people to make more informed decisions on marketing campaigns, risk assessment, pricing, and more.

For example, according to research conducted by Kyndryl, a Brazilian insurance company uncovered “hidden patterns and insights” in its data using generative AI on its mainframe. Having this additional data at their fingertips allowed the company to innovate their underwriting and marketing strategies.  This modern approach to generative AI deployment in a mainframe environment therefore created improved conditions for a financial institution to create positive change.

While cloud platforms offer many advantages for AI workloads, enterprises are discovering that mainframes can provide a powerful, secure, and cost-effective alternative for running generative AI. In other words:  frame environments and AI innovations make great partners.

As Petra Goude, global practice leader at Kyndryl, puts it:

“Mainframes continue to occupy a central role in the hybrid world and are evolving to serve new use cases, with AI and security increasingly influencing modernization plans.”

Don’t let your competitors pass you by. US Cloud can help your organization leverage existing infrastructure for generative AI. Schedule a call with us today!