Mainframe computers, often referred to as the "tech dinosaurs," continue to be indispensable components of the digital infrastructure in the Asia-Pacific region in 2025 and 2026.
Despite perceptions of obsolescence since the rise of the internet and cloud computing, mainframes continue to be the backbone of critical industries across the region, powering financial institutions, government agencies, and large enterprises.
On its 60th birthday in 2024, Gartner wrote that the IBM mainframe will continue to offer significant value to organisations for at least the next 15 years and probably longer because many global enterprises prefer to continue relying on their mainframe due to its features, as well as the cost, complexity and risk of migrating off of it.
Role in Asia-Pacific's digital economy
Asia-Pacific is the fastest-growing and most significant market for mainframe technology, driven by surging digital transactions, regulatory demands, and the need for secure, scalable computing platforms. The region's mainframe market is forecasted to reach a valuation of approximately US$1.8 billion by 2033, growing at a compound annual growth rate (CAGR) of 7.66%.
This growth is underpinned by modernisation initiatives, cloud integration, and the rise of hybrid IT architectures that blend mainframes with public and private clouds.
Francis Goh, Vice President of IBM Z Systems & LinuxONE, IBM Technology Sales, Asia Pacific, and industry data, highlights that mainframe platforms are evolving to meet regional needs for security, AI integration, and cloud compatibility.
He highlights that some offerings now combine efficiency and AI acceleration to support enterprise demands. This reflects a broader trend of organisations moving from AI experimentation to embedding AI into core business processes, using mainframes to support fraud detection, real-time analytics, and operational continuity.
Revisiting the "tech dinosaur" label
The perception of mainframes as recent developments challenge outdated technology. Modern mainframes incorporate advanced features such as on-chip AI inference and enhanced cryptographic capabilities, which can enable real-time fraud detection and improved cybersecurity.
Research from Celent estimates that AI capabilities on mainframe platforms could reduce global fraud losses by significant margins, a relevant consideration for Asia-Pacific's payments market, projected to exceed US$3 trillion by 2028.
Goh notes that mainframes continue to handle a substantial portion of global IT workloads, with a survey indicating that "82% of IT executives in ASEAN see mainframe applications as important to digital transformation efforts."
The ability of mainframes to process large transaction volumes securely and reliably remains a key factor in their continued use, particularly in sectors such as banking and telecommunications.
AI and mainframes: Complementary technologies
The integration of AI with mainframe systems is increasingly viewed as a way to enhance operational efficiency and innovation. Embedding AI capabilities into mainframes allows organisations to perform predictive maintenance, fraud analytics, and workflow optimisation at scale.
This integration supports hybrid cloud environments, helping enterprises incorporate AI-driven insights into their core operations.
The IBM APAC AI Outlook 2025 report indicates that many organisations in the region expect to move AI from pilot projects to mission-critical applications within the next few years, with mainframes providing a stable and secure foundation for this transition.
Factors supporting mainframe use in Asia-Pacific
Several factors contribute to the continued relevance of mainframes in the region:
- High-volume transaction processing: Mainframes are well-suited for handling large-scale, mission-critical workloads with minimal downtime, a necessity for many financial and retail organisations.
- Security and compliance: The increasing regulatory requirements surrounding data protection and auditability make mainframes an attractive option for enterprises seeking robust security features.
- Hybrid cloud adoption: Many organisations are adopting hybrid IT models that integrate mainframes with cloud platforms, allowing for greater flexibility and cost management.
- Workforce development: Educational initiatives in the region are helping to address skills shortages related to mainframe technology.
- Industry partnerships: Collaborations between technology providers and local partners enable the development of tailored solutions to meet diverse industry needs.
Mainframes' impact on business and institutions
Mainframes underpin the operations of 45 of the world's top 50 banks, 4 of the world's top 5 airlines, and 7 of the world's top 10 retailers, reflecting their critical role in global commerce. In the Asia-Pacific region, the technology's resilience and scalability are vital for both fintech startups and large enterprises, enabling rapid innovation without compromising security or performance.
"ASEAN organisations are integrating mainframes with cloud environments through APIs, which serve as a standard integration layer, enabling agility," said Goh.
He explained that such a hybrid approach enables seamless interaction between core business applications on mainframes and cloud applications, facilitating real-time data flow at scale.
"Organisations can hence preserve their existing investments, avoiding the complexity and high costs of duplicating copies of data and keeping data synchronised." Francis Goh
Goh remarks that "IBM's investment in Asia-Pacific R&D and the continuous enhancement of the Z architecture demonstrate our commitment to sustaining mainframe leadership and enabling clients to achieve digital transformation at scale".
The ability to reduce fraud, improve customer experience, and maintain brand reputation through AI-enhanced mainframes is a compelling value proposition for CIOs and CFOs managing complex IT portfolios.
