As organizations begin planning technology priorities for 2027, IBM i modernization is likely to remain high on the agenda.

But modernization does not have to mean replacing IBM i.

For many organizations, the better question is:

How can we make the IBM i applications we already trust easier to integrate, maintain, secure, automate, and extend?

That shift in thinking can make modernization considerably more manageable.

Instead of treating modernization as one massive transformation project, organizations can build an IBM i modernization roadmap around incremental improvements that address specific business needs.

Here are eight priorities IBM i teams should consider as they begin planning for 2027.

1. Assess What Actually Needs to Be Modernized

The first step should not be choosing a technology.

It should be understanding the current environment.

IBM i application portfolios often contain decades of development. Some applications may be business-critical and frequently enhanced. Others may be stable and require little attention.

Start by identifying:

• Business-critical RPG applications
• Programs requiring frequent maintenance
• Applications with limited documentation
• Manual business processes
• File-based or batch integrations
• Applications dependent on individual developers
• Customer-facing processes requiring better experiences
• Systems that need access to IBM i data
• Security or compliance concerns
• Performance bottlenecks

This creates a modernization inventory.

From there, applications can be prioritized based on business impact rather than simply age.

Ask a Better Modernization Question

Instead of asking:

“Which applications are oldest?”

Ask:

“Which applications create the greatest business constraint?”

An older RPG program that reliably performs one function may need little attention.

A newer process requiring employees to manually move information between three systems may be a much better modernization candidate.

2. Modernize RPG Without Automatically Rewriting It

RPG remains responsible for critical business logic across thousands of organizations.

That logic may represent decades of:

• Pricing rules
• Inventory processes
• Customer requirements
• Financial calculations
• Manufacturing workflows
• Order-processing rules

Rewriting everything simply because the code is old can introduce unnecessary risk.

A more practical RPG modernization strategy can include:

• Moving appropriate code to free-form RPG
• Breaking large programs into reusable procedures
• Improving naming and documentation
• Separating business logic from interfaces
• Introducing modern source control
• Adding automated tests
• Exposing reusable functions through APIs

The objective is to make RPG easier to understand and extend while preserving the business logic that continues to work.

Related Reading:
Modernize RPG Without Rewriting: How Free-Form RPG and APIs Work Together
https://katointegrations.com/resources/blog/rpg-application-modernization-free-form-apis/

3. Build an API Strategy, Not Just More APIs

APIs have become one of the most important tools for extending IBM i.

They can connect existing applications with:

• Cloud platforms
• Mobile applications
• Customer portals
• eCommerce systems
• Business intelligence tools
• SaaS applications
• Automation platforms
• AI agents

But creating more endpoints is not necessarily modernization.

Without standards, organizations can simply replace undocumented program calls with undocumented APIs.

A mature API strategy should define:

• API ownership
• Naming standards
• Authentication
• Authorization
• Versioning
• Documentation
• Monitoring
• Error handling
• Lifecycle management

The goal is to create reusable business capabilities.

For example, rather than giving another application direct access to several order tables, IBM i might expose a controlled function such as:

Create Order

The consuming application does not need to understand every table, validation rule, or RPG program behind the transaction.

IBM i maintains responsibility for the business logic.

Related Reading:
Building an IBM i API Strategy: A Roadmap for Long-Term Modernization
https://katointegrations.com/resources/blog/building-an-ibm-i-api-strategy-a-roadmap-for-long-term-modernization/

4. Move the Right Processes Toward Real-Time Integration

Batch processing continues to make sense for many IBM i workloads.

But not every business process should wait for the next scheduled job.

Consider processes such as:

• Inventory availability
• Order status
• Shipment updates
• Customer account changes
• Production events
• Payment status

If employees, customers, or connected applications need that information immediately, real-time or event-driven integration may provide greater value.

An event-driven approach allows an important business change to trigger the next action automatically.

For example:

Order Shipped

could trigger:

1. An update to the customer portal.
2. A shipping notification.
3. A CRM update.
4. An analytics event.

One IBM i transaction can initiate multiple downstream processes.

Related Reading:
Event-Driven IBM i Integration: Moving Beyond Batch Processing in 2026
https://katointegrations.com/resources/blog/event-driven-ibm-i-integration/

5. Treat Security and Observability as Part of Integration

As IBM i becomes more connected, integration security becomes increasingly important.

Every API creates another pathway into business applications.

Organizations should include controls such as:

• HTTPS encryption
• Strong authentication
• Role-based authorization
• Least-privilege access
• Input validation
• API logging
• Credential management
• Security monitoring

But protecting an API is only part of the job.

Organizations also need visibility into how integrations behave after deployment.

IBM i API monitoring should track:

• Availability
• Response time
• Error rates
• Authentication failures
• Request volume
• Dependency performance
• Unusual traffic
• Business transaction completion

The question should not simply be:

“Is the server running?”

It should be:

“Did the business transaction successfully complete?”

Related Reading:
IBM i API Security: Best Practices for Protecting Modern Integrations in 2026
https://katointegrations.com/resources/blog/ibm-i-api-security-best-practices-2026/

Related Reading:
IBM i API Monitoring: How to Keep Modern Integrations Reliable
https://katointegrations.com/resources/blog/ibm-i-api-monitoring-observability/

6. Modernize the IBM i Development Lifecycle

Application modernization is only part of the equation.

Organizations should also modernize how IBM i software is developed and delivered.

An IBM i DevOps strategy can introduce:

• Git-based source control
• Code review
• Automated builds
• Automated testing
• Continuous integration
• Repeatable deployments
• API testing
• Security checks
• Production monitoring

These practices help make application changes more predictable and reduce reliance on manual processes.

They can also make IBM i development more approachable for developers accustomed to modern software-development workflows.

This becomes increasingly important as experienced IBM i professionals retire and organizations onboard the next generation of developers.

Related Reading:
IBM i DevOps: How Modern Development Practices Can Accelerate RPG Modernization
https://katointegrations.com/resources/blog/ibm-i-devops-ci-cd-modernization/

7. Prepare IBM i for AI Without Chasing AI Hype

AI will almost certainly remain a major enterprise technology priority in 2027.

For IBM i organizations, however, one of the most important AI questions may not be:

“Which AI model should we use?”

It may be:

“How will AI securely access the trusted business information it needs?”

AI applications become more valuable when they can work with real operational data.

IBM i may contain:

• Inventory
• Customer information
• Orders
• Pricing
• Production data
• Shipping information
• Financial transactions

APIs can provide a controlled bridge between AI applications and these capabilities.

For example, an AI customer-service assistant might request:

Get Order Status

The API retrieves the approved information from IBM i.

The AI interprets the result.

IBM i remains responsible for the trusted transaction data.

This model becomes even more important with agentic AI, where software may not simply answer questions but also initiate actions.

Organizations should therefore begin with controlled use cases and establish governance around:

• Data access
• Permissions
• API access
• Logging
• Human approval
• Transaction limits
• AI-generated inputs

Related Reading:
IBM i and Agentic AI: Why APIs Are the Bridge to Intelligent Automation
https://katointegrations.com/resources/blog/ibm-i-agentic-ai-api-integration/

8. Address the IBM i Skills Gap as Part of Modernization

Technology modernization without knowledge modernization creates another form of risk.

Organizations should identify applications where business knowledge is concentrated among one or two employees.

Ask:

• Who understands this application?
• Is the business logic documented?
• Who can deploy it?
• Who knows its dependencies?
• Who can troubleshoot it?
• What happens if that person leaves?

Modernization projects provide an opportunity to capture that knowledge.

Useful practices include:

• Application documentation
• Code review
• Pair programming
• Recorded walkthroughs
• Git history
• Automated tests
• API documentation
• Cross-training
• Standard deployment procedures

Modern APIs can also reduce the amount of IBM i-specific knowledge required by other development teams.

A web developer consuming an order API does not need to understand the underlying RPG program, database structure, or library configuration.

They need to understand the API contract.

That separation can help organizations preserve IBM i expertise while making its capabilities available to a broader technology team.

Related Reading:
Closing the IBM i Skills Gap: A Practical Modernization Strategy for 2026
https://katointegrations.com/resources/blog/closing-the-ibm-i-skills-gap-a-practical-modernization-strategy-for-2026/

How to Prioritize Your 2027 IBM i Modernization Roadmap

With so many modernization opportunities, deciding where to begin can be difficult.

A simple prioritization framework can help.

Evaluate each potential project using four questions.

Business Impact

Will the project:

• Improve customer experience?
• Reduce operating costs?
• Increase employee productivity?
• Reduce business risk?
• Support revenue growth?

Technical Risk

How difficult will the change be?

Consider:

• Application complexity
• Dependencies
• Documentation
• Testing requirements
• Security requirements

Urgency

Is there a deadline or increasing risk?

Examples include:

• Developer retirement
• Unsupported technology
• Customer requirements
• Security concerns
• Increasing transaction volume

Reusability

Can the modernization work support multiple future initiatives?

A reusable inventory API may support:

• eCommerce
• Mobile sales
• Customer portals
• Analytics
• AI

Projects with broad reuse potential can create significantly more long-term value.

A Practical 12-Month IBM i Modernization Roadmap

Organizations do not need to complete every modernization initiative in 2027.

A phased roadmap can create momentum while controlling risk.

Q1: Assess and Prioritize

Focus on:

• Application inventory
• Business priorities
• Technical debt
• Skills risks
• Integration requirements
• Security gaps

Select a small number of high-value initiatives.

Q2: Build the Foundation

Introduce or improve:

• Source control
• API standards
• Documentation
• Security practices
• Automated testing

These capabilities can support multiple modernization projects.

Q3: Deliver High-Value Integrations

Target processes where modernization can produce visible business results.

Examples include:

• Customer portals
• Inventory integration
• Order automation
• Cloud connectivity
• Real-time reporting

Q4: Measure and Expand

Evaluate:

• Time saved
• Manual work eliminated
• API usage
• Application performance
• Deployment reliability
• Customer impact
• Developer productivity

Use those results to determine the next modernization priorities.

What Should an IBM i Modernization Roadmap Measure?

Modernization should produce business outcomes.

Useful metrics may include:

• Reduction in manual processing
• Faster order processing
• Improved API response times
• Reduced integration failures
• Increased automated test coverage
• Faster deployment cycles
• Reduced production incidents
• Shorter developer onboarding
• Increased API reuse
• Reduced dependence on individual employees

The goal is not to accumulate modernization technologies.

The goal is to improve how the business operates.

Frequently Asked Questions About IBM i Modernization

What is an IBM i modernization roadmap?

An IBM i modernization roadmap is a prioritized plan for improving IBM i applications, integrations, development practices, infrastructure, security, and skills over time.

Does IBM i modernization require replacing RPG?

No. Existing RPG applications can be modernized incrementally through free-form RPG, modularization, APIs, modern development tools, testing, and improved documentation.

Should IBM i applications move to the cloud?

Not necessarily. Some workloads may benefit from cloud or hybrid architectures, while others may remain best suited to existing IBM i environments. Modernization should be based on business requirements rather than a cloud-first mandate.

Why are APIs important for IBM i modernization?

APIs provide controlled access to IBM i business capabilities and data. They allow web, mobile, cloud, SaaS, analytics, automation, and AI applications to interact with IBM i without requiring direct access to underlying programs or database structures.

How does DevOps support IBM i modernization?

DevOps improves how IBM i applications are developed, tested, deployed, and monitored through source control, automated testing, continuous integration, repeatable deployment, and production feedback.

How should organizations prepare IBM i for AI?

Start by identifying useful business capabilities and exposing them through secure, documented APIs. Establish clear rules for data access, authentication, authorization, monitoring, and AI-initiated transactions.

What should be modernized first?

Prioritize applications and processes with high business impact, significant manual work, integration constraints, security risk, or excessive dependence on individual employees.

Does modernization need to happen all at once?

No. Incremental modernization often allows organizations to deliver value faster while reducing project risk and preserving existing investments.

Final Thoughts

IBM i modernization in 2027 should not be defined by how much technology an organization replaces.

It should be defined by how much business value the organization unlocks from the technology it already has.

For some organizations, that may mean modernizing RPG.

For others, it may mean creating APIs, automating workflows, improving security, adopting DevOps, connecting cloud applications, preparing for AI, or transferring knowledge to the next generation of developers.

The strongest IBM i modernization roadmap will likely combine several of these priorities.

But it does not have to tackle them all at once.

Start with the business problem.

Modernize what creates the greatest constraint.

Build reusable capabilities.

Measure the results.

Then move to the next opportunity.

That is how modernization becomes less of a disruptive technology project and more of a continuous strategy for getting greater value from IBM i.