Here’s four reasons mainframes remain a strong bet
It has long been thought that the mainframe was becoming antiquated, that it would ultimately succumb to the PC and become a rare and outdated form of computing. Mainframe sales did dip substantially with the rise of the PC, but while the growth of sales of PCs has slowed and margins have been squeezed, mainframes endure as a big and profitable business, with plenty of opportunity for future growth, especially in big business and the developing world.
DEALING WITH BIG DATA
More data is produced now than ever before, and all signs point to this trend’s longevity. This means there will be an ever-increasing need for heavy data processing, a feat mainframes accomplish more proficiently than any other technology. On the other hand, sellers of PCs are losing ground to tablets and smart phones (which some might argue are the future of personal computing), and consumers are lengthening their upgrade cycles or abandoning PCs for home computing completely.
Powerful central computers will continue to maintain a prominent place in the management of millions of transactions and data points as the actions of individual users require less local processing power. Plentiful bandwidth means less need for raw computing power and on-site data storage. Having access to a shared resource is now far more valuable. Essentially, in the minds of consumers, the race for faster processors and larger hard drives on PCs has taken a back seat to better online services.
SURVIVING THROUGH INNOVATION
Mainframes are one of the most enduring hardware technologies in the computing industry. While many technologies come and go quickly (think 8-tracks, VCRs, and laser discs), the mainframe has survived and thrived. It was the original model of computing, a central brain that many users can utilize. Moreover, major software and hardware innovation and development continues emerging for these powerful machines, both from the hardware developers like IMB, HP, and Oracle as well as from software developers like ASPG. There is still tremendous opportunity for growth and creativity.
Innovation and developments in mainframes are still happening now and will continue in the future, unlike the PC, which at this point is a very mature product, without much radical innovation expected. And both in the minds of consumers (and in terms of dollars spent), the PC is losing to tablets and smartphones in the realm of casual computing and mobile business functions.
A NEW RENAISSANCE FOR THE MAINFRAME
In the 1980s when businesses began pursuing a client-server model of computing, mainframes subsequently suffered, but never disappeared. Their growth in the market only temporarily slowed. The mountains of data produced each day on the Internet, along with the need for secure hardware to process credit card transactions, jump-started a new renaissance of mainframe computing that will continue to grow, especially as more devices come online and start feeding data. Managing and making sense of the torrents of data produced from the Internet of Things will produce yet another renaissance for mainframe computers. There is no such rosy outlook on the horizon for PCs.
INVESTING FOR NOW AND THE FUTURE
During the period when companies were trying to move toward a client-server model, mainframes survived partly through the inertia of how deeply embedded the legacy systems were within the framework of organizations. This made it difficult, expensive, and more time-consuming to switch models. In addition, other systems were not yet fully developed and the competing hardware was not capable of dealing with the same volume of transactions in such a reliable fashion.
However, inertia is not what is driving them now. IBM and other mainframe manufacturers are still willing to invest in new development. One of the latest IBM mainframe models cost more than $1 billion to develop. This means they still anticipate a long life for mainframe computing.
New features along with the old features of security, power, and reliability ensure that the mainframe still has a long life ahead. That and the hefty margins the products earn in terms of hardware sales, support, and consulting indicates there will be plenty of businesses keeping the mainframe an importing engine in computing for many years to come. All this points to a technological landscape where there is a shrinking need for PCs and a growing reliance on ever more powerful mainframes.
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