Pegasystems Ties AI Platform to AWS Mainframe Modernization

Pegasystems announced a series of enterprise AI enhancements at its PegaWorld conference, anchored by the release of Pega Infinity 26 and a strategic integration with AWS Transform for mainframe modernization.

The workflow automation vendor introduced Pega Infinity Studio and Pega Customer Engagement Studio alongside a shift to case-based AI pricing that moves away from token consumption models. The company also deepened ties between its Pega Blueprint AI design tool and AWS Transform, positioning itself as an orchestration layer for organizations migrating legacy mainframe systems to the cloud.

Why it matters

Mainframe modernization represents one of the largest untapped enterprise IT budgets, and AWS Transform has emerged as a preferred migration pathway. By embedding Pega Blueprint AI directly into that workflow, Pegasystems is attempting to capture design and automation spend at the moment enterprises commit to transformation projects. If successful, this integration could accelerate Pega Cloud adoption and recurring revenue growth in a market segment where buying decisions are already in motion.

Predictable pricing targets cost concerns

Pega's new pricing model charges customers based on completed cases rather than AI tokens consumed. This approach addresses a common enterprise objection to generative AI deployments: unpredictable costs that scale with usage rather than business outcomes. For CFOs evaluating AI investments, case-based pricing offers a clearer connection between software spend and measurable workflow completion.

The pricing shift also reflects broader market pressure. As cloud and CRM vendors bundle AI capabilities into existing suites, standalone workflow platforms face questions about pricing power and differentiation.

AWS integration targets transformation budgets

The Pega Blueprint AI integration with AWS Transform connects Pega's design and orchestration tools to mainframe modernization projects already underway on Amazon's cloud infrastructure. Organizations using AWS Transform to migrate COBOL and other legacy code can now use Pega to map and automate the resulting business processes.

This positions Pegasystems at a strategic inflection point: enterprises moving off mainframes must redesign decades-old workflows, creating demand for both process intelligence and automation platforms. By aligning with AWS rather than competing against hyperscale cloud providers, Pega is betting it can claim a share of modernization budgets without fighting for infrastructure spend.

Investment implications

Pegasystems projects revenue of $2.5 billion and earnings of $447.5 million by 2029, implying 12 percent annual revenue growth. The AWS integration and Infinity 26 enhancements support that narrative by tying Pega more directly to active enterprise spending.

However, competitive pressure from larger cloud and CRM vendors remains a near-term risk. Salesforce, Microsoft, and ServiceNow all offer workflow automation with deeper ecosystem integration and broader installed bases. Pega's ability to differentiate on governance, cost predictability, and mainframe expertise will determine whether these product launches translate into sustained annual contract value growth.

The details were first reported by Automation Watch.