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New Zealand companies 'need to embrace cloud-based solutions'

Fuseworks Media
Fuseworks Media

More than 70% of Fortune 500 companies run critical applications on mainframes, despite the significant business and IT challenges that they present, based on new research by Accenture.

High running costs, performance, security, and compliance issues relating to mainframes are driving companies to consider reducing their dependence on mainframes and shifting to cloud vendors, such as Amazon Web Services, Microsoft Azure and Google Cloud.

Nick Mulcahy, Accenture’s Head of Technology for New Zealand, says that mainframe modernisation is increasing in Australia and New Zealand, but it needs to happen more quickly.

"Our survey of IT executives in Australia and New Zealand found 60% are actively transitioning to cloud-based solutions and another 33% are considering it.

"There is widespread acknowledgement of the benefit of cloud solutions. From improving a company’s sustainability goals to creating agility and resilience for cyber security, there’s strong imperatives to transition at least some applications to the cloud.

"We’ve seen RealMe - the Department of Internal Affairs’ identity verification service - move to Microsoft Azure late last year. This future proofed the service and demonstrated that large organisations can trust the cloud to store information securely.

"While we’re encouraged by the uptake of mainframe modernisation in Australia and New Zealand, we’d like to see more public and private sector organisations follow the lead of the RealMe service.

"Only 16% of respondents in Australia and New Zealand surveyed by Accenture have completed or have nearly completed their transition to cloud-based solutions. Those that don’t start soon may find themselves lagging as they continue to struggle with legacy issues associated with mainframes.

"Kiwi businesses need to make changes now if their goal is to shift away from mainframes in the next five years, particularly those industries such as healthcare, insurance and government which tend to rely on them.

"These solutions take time to implement and require buy-in from the top down - as we look toward a new year, there’s no time like the present to review your current infrastructure and understand how technology could help business create better solutions."

Accenture’s Mainframe modernisation - from legacy to cloud can be accessed here.

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