The Unseen Costs of Legacy Systems
A 150,000 MIPS mainframe isn't just an IT expense; it's a strategic anchor, imposing staggering financial burdens and operational drag that stifle growth and innovation.
Annual TCO: The $200M Drain
The fully-loaded Total Cost of Ownership for a 150,000 MIPS environment is a massive, recurring drain on enterprise capital, dominated by punitive software licensing.
Innovation Blocked
68%
of IT leaders state legacy systems prevent them from adopting critical AI and automation technologies.
The Skills Cliff
60%
of mainframe professionals are over 50, creating a critical and escalating talent risk for the business.
The "Growth Penalty"
Mainframe licensing models financially penalize business growth. As your company succeeds, your IT costs escalate, creating a direct conflict with strategic objectives.
The AI-Powered Modernization Engine
The Pega & AWS partnership provides an integrated, AI-driven "transformation factory" that deconstructs legacy code and reimagines business processes for the cloud.
Legacy Mainframe
Monolithic COBOL Apps & Opaque Logic
AWS Transform
AI-led Code Analysis & Refactoring to Java
Pega Blueprint
GenAI-powered Workflow Design
Modern Application
Agile, Cloud-Native & Intelligent Workflows
Funding the Transformation
A creative, multi-source funding strategy de-risks the financial commitment, minimizing reliance on new capital by leveraging partner investment and the project's own savings.
Multi-Source Funding Model ($150M)
Key Funding Levers
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💰
Self-Funding from Savings
Redirecting realized OpEx savings from mainframe decommissioning to fund subsequent migration phases.
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☁️
AWS MAP Funding
Leveraging the AWS Migration Acceleration Program for service credits and cash to offset costs.
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🤝
SI Partner Co-Investment
Structuring outcome-based commercial models with the implementation partner to share risk and investment.
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🏦
Internal Capital
Securing traditional capital budget, minimized by leveraging external and self-funding sources.
The Transformative Return on Investment
The business case is clear. Modernization delivers massive hard-cost savings, unlocks strategic value, and mitigates critical enterprise risks.
5-Year Cost Projection: Legacy vs. Modern
The project rapidly pays for itself, with the new cloud-native operational cost being a fraction of the legacy TCO, leading to exponential savings.
5-Year Total Benefits: $837M
Value is realized across three key pillars, with direct cost savings forming the foundation for strategic and risk-mitigation benefits.
5-Year ROI
458%
Payback Period
25
Months
Net Present Value
$485M
Internal Rate of Return
78%