IBM i AS400 hosting is moving toward hybrid cloud, managed services, stronger security, automation, and flexible consumption models. These trends help you improve scalability, resilience, and operational efficiency while continuing to run their existing IBM i workloads.
IBM’s AS/400 servers, also known as iSeries, can handle many things simultaneously. Its architecture has been developed to address enterprise resource planning (ERP) and many other robust tasks.
Enterprise who doesn’t compromise on reliability and security, IBM iSeries AS400 is the answer for them. Companies have believed in the legacy of IBM iSeries AS/400 since its start; it’s just that now they are pulling out of their on-premises server duties and switching to IBM i hosting.
In this blog, we have briefly described the five most significant hosting trends about IBM iSeries AS400.
Have a look.
Why are Businesses Moving to AS400 Cloud Hosting?
Businesses are moving to AS400 cloud hosting to reduce infrastructure overhead, scale resources more easily, strengthen security, improve remote access, and support business continuity.
For businesses running IBM i workloads, hosting can also provide access to specialized expertise without managing the entire infrastructure in-house.
Ever wonder why CTOs are drifting away from traditional on-premises AS400 hosting to IBM iSeries cloud hosting?
Well, there are multifarious perspectives to this transition.
Some are motivated by the commercial benefits and others are driven by the technological benefits of it. But, all-in-all, the transition from traditional IBM iSeries AS400 servers to cloud is a win-win – no matter partial or complete.
Let’s understand some key benefits of AS400 cloud hosting.
5X Savings on Infrastructure & Operational Costs
First, let’s uncover the cost factor.
An on-premises physical server needs timely maintenance – including environment, infrastructure, and wear and tears.
It also includes operational maintenance where you need a team of professionals to monitor the resource utilization, provisioning, and other activities.
No matter how far you go to optimize the performance & maintenance of your on-premises servers, the operational costs cause consistent commercial strain.
Whereas on the hand, when you go with AS400 cloud hosting – you only pay for the resources you consume. Your capital expenses would be reduced drastically with AS400 cloud hosting services.
Performance & Resource Scalability
Resource unavailability is a big concern.
We’ve heard a lot of CTOs complain about delayed batch job processing due to resource unavailability. Over-provisioning and under-provisioning cause a lot of operational friction which can bring the operations to a standstill.
IBM iSeries cloud hosting allows you to scale your infrastructure up and down, based on changing processing needs. With AS400 cloud hosting in place, you can devise a proactive resource provisioning plan and only pay for the resources you utilize.
This ensures your AS400 applications perform optimally through the peak periods without any operational strain. Also, you can save costs during the low-demand periods.
Enhanced Security Stature
Cybersecurity is reported as the top concern by 77% of IBM i users.
~ As per the 2025 IBM i Marketplace Survey by Fortra.
Given the fact that AS400 has the best-in-class security enforcements in place – There are over 100,000 companies that use AS/400 technology as it exists within IBM i to power their most mission-critical application.
~ As per Fortra.
But what we must realize is that the security provisions aren’t good enough to protect IBM i data and applications against modern-day cyberattacks, unless they went under timely upgrades.
Approaching AS400 cloud hosting offers an edge, as it comes with security provisions, capable of combatting modern-day cyber threats.
When you work with leading IBM i hosting providers, they help you implement multi-layer security solutions. This includes firewalls, encryption, and advanced threat detection.
As a result, your IBM i workloads and data are protected against cyber threats. Also, your AS400 environment is compliant with industry standards like PCI DSS, HIPAA, and GDPR.
Accessibility & Remote Management
Did you know?
About 86% of employees lose approximately 18 hours a month due to IT issues.
An average employee is productive for 2 hours and 53 minutes a day.
That’s 31% of an average 8-hour workday.
Everything boils down to the degree of freedom your IBM i users have to access the IBM i applications.
User experience is yet another factor that contributes highly to lowered user productivity.
AS400 cloud hosting opens an opportunity to reinvent the degree of freedom for accessibility. While shifting the IBM i workloads to the cloud, you can also go for AS400 application GUI modernization. This will help revamp the user interface for your IBM i applications.
Counting the benefits of IBM iSeries cloud hosting, it enables your users to manage AS400 workloads remotely. They can access applications and data from anywhere, anytime, boosting operational efficiency.
Business Continuity & Disaster Recovery
49% of IBM i users are prioritizing high-availability and disaster recovery.
~ As per 2025 IBM i Marketplace Survey by Fortra.
With half of the IBM i users prioritizing high availability and disaster-recovery (on consensus surveyed), it’s evident that CTOs are progressively thinking about future-proofing their IBM i investments.
With cloud-based IBM iSeries AS400 hosting, you get to leverage the built-in redundancy and automated backups. This ensures no-to-low downtime, high availability, and faster disaster recovery.
Next, let’s look at the top trends for IBM iSeries AS400 hosting.
What are the Top IBM i Hosting Trends?
The biggest IBM i hosting trends include hybrid cloud adoption, stronger security and compliance, AI-driven automation, high availability and disaster recovery, managed hosting, and consumption-based pricing.
Together, these trends are changing how businesses manage IBM i infrastructure while continuing to support existing workloads.
| IBM i Hosting Trend | What It Means for Your Business |
| Hybrid Cloud Adoption | Combine on-premises IBM i environments with cloud infrastructure for greater flexibility and scalability |
| Security-First Hosting | Strengthen protection through security controls, monitoring, access management, and compliance practices |
| AI & Automation | Automate monitoring, operations, and repetitive IBM i management activities |
| High Availability & Disaster Recovery | Improve resilience and reduce disruption through backup, recovery, and failover capabilities |
| Managed IBM i Hosting | Access specialized IBM i expertise while reducing the operational burden on internal IT teams |
| Flexible Pricing Models | Align infrastructure costs with actual usage through subscription and consumption-based models |
Growing Demand for Hybrid Cloud Solutions
Hybrid cloud solutions are the talk of the town.
Reason?
It offers you the best of both the worlds – On-premises & Cloud!
CTOs are more inclined toward hybrid cloud models as it allows them to leverage both on-premises AS400 servers and IBM iSeries cloud hosting. This enables optimal performance and flexibility.
And, not just that, a hybrid cloud strategy power IBM iSeries AS400 with –
Improved security procedures, Superior control on the workflows, Seamless workload scalability to cope fluctuating workloads
“Futureproofing an IBM i environment does not always require a large transformation initiative. Sometimes, the most meaningful progress starts with the next logical step.”
~ Tony DeGruccio | Director of Customer Success – IBM i, Integrative Systems.
Security-First Approach in AS400 Hosting
Cybersecurity concerns have topped the table for IBM i concerns. 77% of IBM i users cited it as a top concern.
~ As per 2025 IBM i Marketplace Survey by Fortra.
Unsurprisingly, AS400 security services are the next thing going to be in trend, this year.
If you still have a “Why” buzzing around, here are some reasons CTOs are prioritizing security.
CTOs are in for –
- Data encryption for safe & secure data transmission
- Multi-level authentication to restrict unauthorized access
- Timely security audits to comply with industry regulations
- AI-powered security monitoring for real-time threat identification
Through AS400 security services, AS400 experts ensure this and way beyond, making your AS400 ecosystem tamperproof!
AI & Automation in IBM iSeries AS400 Hosting
AI & automation is taking over to reduce the excessive strain on manual labor.
We are seeing mundane processes getting automated!
We are seeing repetitive tasks getting automated!
We are seeing human errors getting eliminated!
Over 30% IBM i users are prioritizing AI-adoption in their 2025 IBM i strategy.
~ As per 2025 IBM i Marketplace Survey by Fortra.
AI-powered automation is capable of transforming iSeries managed hosting solutions by –
- Minimizing downtime via predicting server failures
- Reducing human intervention with maintenance automation
- Saving operational costs through optimized resource allocation
“The future of IBM i is not about replacing what already works. It is about giving existing environments the tools, flexibility, and expertise to keep evolving.”
~ Tony DeGruccio | Director of Customer Success – IBM i, Integrative Systems.
Increased Focus on Compliance & Regulations
With industries like healthcare, finance, and retail relying on IBM i, IBM i hosting providers must ensure compliance with –
- HIPAA for healthcare data security
- PCI DSS for financial transactions
- GDPR for data privacy protection
- SOX for corporate governance in publicly traded companies
Migration to Public and Private Cloud Platforms
Businesses are migrating their IBM AS400 hosting to platforms like AWS, Azure, Google Cloud, and IBM Cloud, ensuring –
- Better uptime & reliability
- Cost savings with pay-as-you-go models
- Advanced security measures like AI-based monitoring
Increasing Use of High Availability (HA) & Disaster Recovery (DR)
More businesses are implementing HA/DR solutions in cloud environments to minimize downtime.
Solutions like PowerHA, Robot HA, and cloud-based backups are gaining traction, ensuring continuous business operations in case of system failures.
Shift to Subscription & Consumption-Based Pricing
IBM now offers subscription pricing for Power9/Power10 servers, aligning with cloud-like pricing models.
Businesses are opting for operational expense (OpEx) models over traditional capital investments, making cloud adoption more financially viable.
Managed Hosting for IBM iSeries and AS400
Outsourcing AS400 hosting to specialized IBM i hosting providers is a growing trend.
Businesses opt for iSeries managed hosting solutions to –
- Offload IT infrastructure management
- Focus on core business functions
- Ensure continuous monitoring, updates, and security enforcement
AS400 Security Services and Zero Trust Model
As security threats evolve, AS400 security services are becoming more advanced.
The Zero Trust Model is gaining traction, ensuring continuous authentication and verification of all users and devices accessing IBM i systems.
Outsourcing IBM iSeries AS400 Expertise
As the talent pool in IBM iSeries AS400 dwindles, IBM AS/400 users find it more challenging to find reliable and skilled IBM i experts.
Minimum skills required for managing IBM AS400 iSeries include –
- IBM iSeries AS400 OS Management
- IBM iSeries Administration
- Backup & Retention
- Version Upgrade
- troubleshooting
The reasons for this essential skill are many. This includes retiring in-house talent, implementing new technologies (ERP, e-commerce, CRM, analytics, etc.), and running various systems.
IBM iSeries AS400 cloud hosting service provides these users with the resources they need to run their business in collaboration with IBM AS/400 experts that can be easily accessed whenever you need any help.
Secure Data Center
Data centers are very popular because their companies get more security, redundancy, continuity, and disaster resistance than they can afford in an internal data center.
Most IBM iSeries AS400 users have limited security.
Often, they do not have a disaster recovery plan in the context of natural disasters.
For such reasons, many IBM iSeries AS400 users host their local servers in a single data center.
So, IBM AS/400 users get excited when they consider hosting a state-of-the-art IBM POWER server hosted.
They now have a greater sense of security, continuity, and flexibility than they had earlier. If they already had the data center facility, they could have saved lots of hosting money.
Reduced Cost of Ownership
Speaking to potential customers here at Integrative Systems, we explained that getting a hosting service would be less expensive if they compared the price of an on-premises server to the cost of 5 years of hosting.
However, server costs are not the only costs incurred by IBM iSeries AS400 users.
We explained to these potential customers that they could have included the cost of –
IBM iSeries AS400 support (hardware and software support, server management, backup and retention, software patches, version upgrades, and troubleshooting support).
Secure, redundant data center and management (UPS, redundant power, redundant cooling, and fire suppression, firewall, internet security, etc.),
Ability to endure and recover.
And many more.
Flexibility
IBM iSeries hosting offers flexible terms.
Most of the time, you only pay for what you need and only when you need it.
This is especially appealing to businesses that intend to end their IBM AS400 application support in the exchange of newer technologies.
More specifically, they may be running older IBM iSeries servers without IBM i support.
They may need more time to migrate to more recent applications, but they may not want to purchase a new server or enhance their IBM iSeries AS400 talent.
Reduce the Deviation
With IBM iSeries AS400 Hosting, users do not have to deal with deviations such as –
- Hardware error messages
- Respond to unexpected IBM service termination (EOS) announcements
- IBM Support Renewal (HWMA and SWMA)
- Backup media Off-site backup management
- UPS and battery management and replacement
Why Is IBM i AS400 Hosting Continuing to Grow?
IBM i AS400 hosting continues to grow as businesses look for scalable infrastructure, stronger security, reliable disaster recovery, and access to specialized IBM i expertise without maintaining all hosting resources in-house.
Have a look at a few reasons why IBM iSeries cloud hosting is not slowing down:
1 – Access to Talented IBM iSeries AS400 Specialists
Following the retirement of the old IBM AS400 specialists, companies are looking for IBM experts who have specialized skills like –
- Backup management
- Programming
- Perception
- Version update
Skilled programmers and advanced business applications in IBM iSeries AS400 are dwindling and can be difficult to replace when they are lost.
By eliminating long and complex employee searches, experts can be sought from outside by IBM AS400 hosting providers such as Integrative Systems.
2 – Big Security Benefits
Disaster recovery is a major reason why companies prefer hosting with IBM iSeries AS/400 because of its internal equipment and its ability to recover data in the event of a breach.
In addition, IBM AS400 hosting outsourcing is more profitable as the hosting service provider can match the level of security required, as technically advanced equipment is needed for hosting.
Companies can reap the benefits of modern technology when they choose to outsource hosting.
3 – No Hidden Expenses Like On-Premises Server
Companies set the total cost of ownership (TCO) for the life of their on-premises servers. Over time, the internal server costs them more than its initial investment.
Expenses include redundant data center security functions and administrative data loss prevention measures such as –
- Disaster recovery
- Put out the fire
- Firewall
- Internet security
- Overcooling/heating
- An uninterruptible power supply (UPS)
The cost of maintaining the server accrues, and once that cost is incurred, the server itself will expire. This single action can put the business at risk.
IBM AS/400 hosting services enable enterprises to continue without spending too much money on server maintenance.
4 – Pay for the Usability Only
Through IBM AS/400 hosting service, companies streamline their operating budgets.
This way, it’s easier for them to leave their old servers and bring in new apps when they’re paying for the services they use.
Furthermore, due to the age of the servers, the warranty and technical support that come with them become obsolete.
IBM iSeries AS400 makes smooth transitions in the hosting cloud.
With Integrative Systems, customers get a piece of the larger enterprise virtualized cloud infrastructure, making it easier to expand or downgrade as per their business needs.
5 – Eliminate Productivity-Wasting Diversions
When error messages about any equipment appear, technical staff should stop working on the project and fix the problem.
Meanwhile, productivity slows or stops.
As with all computer-related devices, termination of service (EOS) announcements will be issued from time to time.
Cloud hosting of IBM AS/400 takes the drama away, allowing IT staff to focus on development and implementation.
“When IBM i infrastructure is managed well, IT teams can spend less time maintaining the environment and more time using it to move the business forward.”
~ Tony DeGruccio | Director of Customer Success – IBM i, Integrative Systems.
What Should You Look for in an IBM i Hosting Provider?
Choosing an IBM i hosting provider is about more than moving your AS400 environment to the cloud. The right provider should offer the infrastructure, technical expertise, security, and ongoing support needed to keep your IBM i environment reliable and adaptable.
Experienced IBM i Expertise
IBM i AS400 hosting continues to evolve, and businesses need access to professionals who understand the platform, its applications, and its infrastructure.
Integrative Systems is a global provider focused on IT and IBM iSeries AS400 solutions, with extensive experience providing technical support to companies across industries.
Our team brings expertise across IBM i environments to help you manage your cloud hosting, management, and maintenance needs.
Support for Your Hosting and Management Needs
Whether your IBM i environment is already in the cloud or you need support with management and maintenance, working with an experienced IBM i hosting services provider can help reduce the operational burden on your internal IT team.
With the right AS400 hosting services, you can access the infrastructure and specialized expertise you need while maintaining the reliability of you existing IBM i workloads.
Why Choose Integrative Systems?
At Integrative Systems, we provide solutions focused on IBM iSeries AS400 environments and support organizations across industries with their technical requirements. Our approach is built around accountability, integrity, and long-term technical support.
If you’re evaluating AS400 hosting services, looking for IBM i hosting services, or need ongoing management and maintenance support, we work as an extension of your team to understand your goals and deliver reliable solutions aligned with your needs.
Drop us a line at contact@integrativesystems.com. And, our team of experts will get back to you within 2 business days.
Frequently Asked Questions about IBM i AS400 Cloud Hosting
1. What is IBM i Hosting?
IBM i hosting is the practice of running IBM i AS400 workloads on hosted infrastructure instead of managing the physical server environment in-house. It provides you access to scalable infrastructure, security, backups, and IBM i expertise.
2. What is the Difference between IBM i Hosting and AS400 Cloud Hosting?
IBM i hosting can include different infrastructure models, including dedicated or hybrid environments. AS400 cloud hosting specifically refers to running IBM i workloads on cloud-based infrastructure for greater scalability and flexibility.
3. What should I Consider When Choosing an IBM i Hosting Provider?
You must assess IBM i expertise, infrastructure reliability, security, backup and disaster recovery capabilities, scalability, ongoing support, and the provider’s ability to manage your specific IBM i environment.
4. Can IBM i Applications Continue Running after Moving to Cloud Hosting?
Cloud hosting allows you to continue running your existing IBM i workloads while moving the underlying infrastructure to a hosted environment. This provides greater flexibility without requiring an immediate application replacement.
With 23+ years of experience, Tony is an IT Transformation Leader with deep expertise in IBM i (AS/400) infrastructure, modernization, and cloud enablement. He has led initiatives in high availability, disaster recovery, performance optimization, and hybrid cloud integration.
At Integrative Systems, he strengthens delivery frameworks, enhances service quality, and builds trusted customer partnerships across the IBM i ecosystem. Combining technical depth with strategic leadership, Tony helps organizations futureproof mission-critical IBM i workloads and drive sustainable growth.
