Forward-looking financial organizations are recognizing the inevitable need to modernize aging mainframe legacy systems that have been the backbone of business-critical operations for decades thanks to their reliability, massive processing power and scalability.

In today’s hypercompetitive and fast-evolving digital economy – where the race is on to optimize efficiency, cost management and customer service – businesses are enduring significant roadblocks as monolithic mainframes impede innovation, inflate costs and slow time-to-market.

According to our latest research, CGI’s 2025 Voice of our Clients – 48% of banking executives in Canada say aging legacy systems are posing a major challenge to their digitization strategies.

Mainframe modernization is not about replacing hardware but ensuring that mission-critical applications can seamlessly integrate with modern technologies, leverage cloud and AI capabilities, and maintain operations with minimal disruption. As technologies such as cloud-based orchestration and AI proliferate and the rapid pace of change accelerates in the digital economy, organizations in Canada are recognizing the need to modernize.

Tailoring modernization with a spectrum of strategies and a data-first approach

While the future of mainframes is clear, it’s crucial to note that there is no one-size-fits-all path to modernization. Each journey poses unique challenges and risks, and a spectrum of approaches exists to meet every organization’s specific requirements and risk tolerance:

  • Modernizing in place – keeping the mainframe intact while modernizing incrementally.
  • Migration-centric modernization – migrating mainframe applications to the cloud “as is” to focus on cost reduction and hardware independence.
  • Right-sizing – a hybrid approach that retains the mainframe for high-volume, mission-critical applications while migrating non-core workloads to modern platforms.

CGI is taking a proven data-first approach to modernization. It emphasizes decoupling data from the mainframe – enabling fast, centralized data access, real-time reporting, advanced analytics, automation and regulatory oversight prior to modernizing applications or interfaces. A data-first strategy reduces costs and risks while offering seamless modernization, flexibility and scalability.

Navigate the journey at your own pace to preserve stability

Decoupling data from the mainframe essentially positions your business to modernize at your own pace – without disrupting core operations. Fast-emerging as a differentiator in today’s crowded marketplace of solutions, this modern approach preserves the stability and security of mainframes while enabling these powerful systems to evolve amid the demands of today’s reality.

Mainframe modernization is no longer optional, and CGI’s proven framework and tools are helping organizations navigate this complex journey. By assessing your current environment, CGI can help chart a modernization roadmap that transforms your mainframe from a constraint into a catalyst for future growth.

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