Unlocking Efficiency: The Essential Steps for AS400 Modernization

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The IBM AS400, now known as IBM iSeries or IBM Power Systems, has been a reliable workhorse in many organizations for decades. Built for scalability, security, and reliability, AS400 systems power critical business applications, especially in industries like finance, retail, manufacturing, and healthcare. However, as business requirements evolve and technology progresses, companies using AS400 face the challenge of modernization. Unlocking efficiency and ensuring that their systems can meet modern demands is not just a technical upgrade—it’s a strategic transformation.

While AS400 systems are known for their reliability and security, they often face issues related to user interface (UI), integration with modern applications, and agility. The cost of maintaining these legacy systems increases over time, and younger IT talent tends to be less familiar with RPG and COBOL programming languages, which are commonly used on these platforms. Moreover, with the growing demand for cloud computing, mobility, and advanced data analytics, businesses need their systems to support cutting-edge technologies.

A 2022 survey by IDC reported that 40% of companies using legacy systems, including AS400, consider application modernization a high priority to remain competitive. Furthermore, businesses that successfully modernize their legacy systems report an average 25-35% increase in efficiency, according to IBM’s internal research.

To fully unlock the potential of AS400 systems and drive business agility, organizations need to undertake a careful and strategic modernization journey. Below are the essential steps to ensure success.

Before embarking on a modernization journey, it is crucial to have a clear understanding of the current state of your AS400 system. The primary aim is to identify the system’s strengths, weaknesses, and areas where modernization is most needed. Key areas to assess include:

  • Codebase: Are the applications written in RPG or COBOL, and how maintainable are they?
  • Performance: Is the system meeting current performance benchmarks, or are there bottlenecks?
  • Integration: Can the AS400 system integrate with modern cloud, mobile, and web-based applications?
  • Security: Is the security framework up to date with modern compliance standards?

This initial assessment is critical because it helps create a roadmap for modernization by pinpointing specific areas that require upgrading.

Many AS400 systems were built using monolithic architectures, where all functionalities are tightly coupled. This architecture works well for stability but hampers scalability, flexibility, and integration with modern technologies.

One essential step in modernization is decoupling the monolithic architecture by adopting microservices or service-oriented architecture (SOA). This involves breaking down large applications into smaller, independent services that can be scaled, updated, or replaced without affecting the entire system.

By doing this, organizations can introduce agility into their IT environment, enabling faster delivery of new features, integration with third-party applications, and adoption of cloud services. According to Forrester Research, organizations that have embraced microservices report a 32% improvement in development cycle times.

Modernizing the AS400 does not always mean replacing the entire system. In many cases, introducing APIs (Application Programming Interfaces) can extend the capabilities of legacy systems and integrate them with modern applications.

APIs allow external applications to communicate with the AS400 system, offering functionality such as data exchange with cloud-based platforms, mobile apps, and third-party tools. For example, an AS400-based financial application can connect with a web-based customer portal through APIs, offering real-time data access to clients.

This approach enables organizations to maintain their robust legacy systems while still embracing digital transformation. A report from McKinsey noted that companies using APIs for modernization experience a 15-20% increase in productivity by integrating old and new systems seamlessly.

The traditional green-screen UI of AS400 systems is often seen as outdated, especially when compared to modern graphical user interfaces (GUIs). Many businesses struggle to onboard new employees due to the steep learning curve associated with these legacy systems.

Modernizing the user interface is one of the most effective ways to unlock efficiency. Tools such as Profound UI, Newlook, or Rocket Software offer solutions for transforming the green-screen into web-enabled, responsive UIs without changing the backend logic of the AS400 system.

A modernized UI improves user experience, reduces training time for new employees, and enhances operational efficiency. According to Gartner, businesses that modernize legacy UIs can see productivity gains of up to 30%.

Cloud migration is often a critical component of AS400 modernization. However, migrating an entire AS400 system to the cloud can be complex and costly. Instead, many organizations opt for a hybrid cloud approach.

In a hybrid model, critical applications and data remain on-premises, while less critical applications, analytics, or new microservices are hosted in the cloud. This approach provides the best of both worlds: the reliability and control of AS400 systems and the scalability and flexibility of the cloud.

IBM’s study revealed that 68% of businesses running AS400 systems plan to adopt a hybrid cloud strategy by 2025. This shift will enable companies to improve cost efficiency, scalability, and innovation.

DevOps is a set of practices that combines software development and IT operations to enable faster, more reliable application deployment. AS400 modernization should not be limited to infrastructure or applications alone; it must also extend to development and operational processes.

Organizations can leverage modern DevOps tools such as Jenkins, Git, and Docker to automate workflows, improve collaboration between teams, and accelerate software releases. This continuous integration and continuous delivery (CI/CD) model ensures that new features and bug fixes can be deployed quickly and efficiently, thereby unlocking significant productivity gains.

A Puppet Labs report found that companies that implement DevOps practices reduce their time to market by 50% and deploy new software updates 30 times faster than those that do not.

Modernization is not just about technology; it’s about people too. Legacy systems like AS400 often require specialized knowledge, but as the workforce evolves, fewer IT professionals are familiar with older languages like RPG and COBOL. At the same time, companies must ensure that their staff can work with new technologies, including APIs, microservices, and cloud platforms.

Re-skilling the workforce and providing continuous training on modern tools and technologies is a critical part of the modernization journey. Many organizations partner with educational platforms or leverage internal training to upskill their teams. According to LinkedIn’s 2023 Workplace Learning Report, companies that invest in upskilling and reskilling programs report a 21% increase in employee retention and a 19% improvement in performance.

While the prospect of full-scale AS400 modernization may be daunting, a phased approach offers a more manageable path. By tackling one system or process at a time, businesses can modernize incrementally without disrupting day-to-day operations.

For instance, start by modernizing the UI or implementing APIs, followed by decoupling the architecture or moving specific workloads to the cloud. This approach allows organizations to measure progress, mitigate risk, and maintain business continuity throughout the transformation journey.

AS400 systems have stood the test of time, but modernization is essential to remain competitive in today’s fast-paced digital environment. By following these essential steps—assessing the current landscape, decoupling the architecture, leveraging APIs, modernizing the UI, migrating to the cloud, embracing DevOps, re-skilling the workforce, and adopting a phased approach—businesses can unlock significant efficiency and agility.

Statistics suggest that modernization leads to tangible benefits, including a 25-35% increase in operational efficiency, 15-20% boost in productivity, and 30% reduction in time to market. For organizations relying on AS400 systems, modernization is not just an option—it is a pathway to sustained growth and innovation in the digital age.

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