For many developers, COBOL feels like a relic of the past, overshadowed by sleek, modern programming languages. If you choose COBOL, it’s like picking a classic car from the 80s over an electric car for being more sustainable. Quite an obvious choice.

Yet, even in 2025, COBOL remains irreplaceable for many large corporations. Let’s explore COBOL’s origins, the unique features that still make it relevant, and the reasons behind its surprising resilience and challenges.

The Story of COBOL

COBOL, short for Common Business-Oriented Language, has a fascinating origin. Created in 1959 by the CODASYL committee, it drew inspiration from FLOW-MATIC, a language pioneered by Grace Hopper. It was developed as part of a U.S. Department of Defense initiative to create a portable language for data processing.

COBOL’s primary purpose was to handle tasks like:

• Managing financial records.
• Tracking inventory.
• Processing business data.

But the standout feature was its syntax. It was made to resemble natural language, so non-programmers could read and understand the code easier. It was a true innovation that set it apart from other programming languages of its time.

By the 1970s, COBOL had become the world’s most widely used programming language. Banks, businesses, and government agencies depended on it for critical data processing tasks. Many of these legacy COBOL systems are still operating today and charging essential functions despite the language being considered outdated.

COBOL gained attention again in the late 1990s during the Y2K crisis. At the time, many COBOL programs used two-digit year formats such as 99 for 1999, raising fears about how systems would handle the year 2000. There was the start of a massive global effort to update and debug COBOL code. However, it’s important to note that the Y2K issue stemmed more from the programmers’ short-sighted design choices than any inherent language limitation.

The Y2K problem was even in question due to cost-saving decisions. In the early days of computing, data storage was expensive, and businesses were cautious with their budgets. Since the turn of the millennium seemed far off—nearly 40 years away—programmers went for a 2-digit year instead of a 4-digit format to conserve space and resources. Such a short-term approach created the Y2K crisis decades later.

Despite challenges like this, COBOL’s reliable design and strong industry backing let it endure far beyond its original purpose. By the 1990s, COBOL had become the backbone of global business computing. Estimates say that by 1990, it was the most widely used programming language in the world, and by 1997, COBOL was behind around 80% of business applications.

Why COBOL Thrived

COBOL’s global success was due to a mix of original features and practical perks that made it so valuable for business computing.

At its core, COBOL was purpose-built for corporate apps. It excelled at handling complex financial operations, administrative tasks, and large-scale data processing and was indispensable for organizations managing vast amounts of information.

One of COBOL’s standout features was its user-friendly syntax that mimicked English. That’s why COBO was much easier to learn than other languages like Fortran. It was a smoother entry point for aspiring programmers.

Another key strength was its portability. Programs written in COBOL could be run on different computer systems with minimal adjustments and the flexibility to adapt to new hardware without overhauling their software.

COBOL’s adoption by major players in finance, government, and corporate sectors created a powerful network effect. As more organizations embraced the language, its value grew together with compatibility and streamlined data exchange across industries. All these factors solidified COBOL’s position as a dominant programming language for the following decades.

What Are COBOL Dialects?

COBOL dialects are variations or implementations of the language that fit different needs and platforms. While COBOL has a standardized version defined by ANSI and ISO, many organizations and vendors have created their own versions over the years. These are some notable COBOL dialects:

ISO COBOL

It’s the official, standardized version made by ANSI and ISO. This version is the foundation for all other COBOL implementations and its primary purpose is to keep cross-platform compatibility and consistency.

IBM COBOL

This dialect matches IBM mainframes, such as the System Z series. It includes optimizations and features for these platforms and is cherished in industries like banking and finance that heavily rely on mainframes.

Micro Focus COBOL

Developed by Micro Focus, Micro Focus dialect supports many platforms, including Windows and Unix/Linux. It also gives modernization tools to integrate COBOL applications with modern tech.

Fujitsu COBOL

As the name says, it’s a version optimized for Fujitsu’s mainframe and server systems. It emphasizes high-performance processing and integration with Fujitsu hardware and software.

ACUCOBOL

ACUCOBOL is responsible for compatibility with COBOL-74 standards. It adds enhancements for file handling and user interface development.

OpenCOBOL (GnuCOBOL)

It’s an open-source implementation of COBOL and a free alternative to commercial compilers. OpenCOBOL has gained traction in open-source and Linux communities for its accessibility and flexibility.

UNISYS COBOL

This version fits UNISYS ClearPath mainframe systems. It gives specialized features for integrating COBOL apps with UNISYS platforms.

COBOL in the Modern Era

A 2022 survey revealed surprising growth and enduring relevance for the decades-old COBOL programming language. Far from fading into obsolescence, COBOL still plays a vital role in digital operations.

The survey found that 92% of organizations think their COBOL-based applications are critical to their business operations. Moreover, for them, they have strategic importance as this language powers their essential systems.

But the modernization  doesn’t overlook COBOL. Cloud computing is a key factor in why organizations started upgrading COBOL. According to the survey, 43% said that their COBOL apps already support cloud environments or plan to do so within the year. This means the language stays adaptable and friendly to the latest tech trends like cloud.

Another survey finding says that people are not planning to give up on COBOL in the next decade. 52% of respondents expect to continue using COBOL-based apps in the future. But using COBOL doesn’t assume having to maintain legacy systems only. It’s a driver of global modernization. Indeed, 72% of the survey respondents shared plans to update their COBOL apps as part of broader digitalization strategies.

Despite its solid age, COBOL is experiencing a surprising revival in tech. Many companies still rely on it for mission-critical tasks and many integrate COBOL into their cloud-based infrastructures and modernization efforts. Thus, once seen as a relic, COBOL is now proving it’s relevant and bridging the gap between legacy systems and innovations.

What’s Next for COBOL?

What does the future hold for organizations relying on COBOL? Insights from Misu Tasnim, executive director of digital service at the U.S. Department of Health and Human Services, give a glimpse. Tasnim’s team is working to transition government agencies away from aging mainframe systems, with their current focus on the Centers for Medicare and Medicaid Services.

Historically, government modernization efforts relied on massive contracts with large firms. This approach often led to costly projects with long delays. Today, a more incremental way of upgrading things is gaining traction. The new strategy emphasizes an API-first and cloud-centric methodology, meaning that fully migrating monolithic systems to the cloud is gradual.

In reality, developers rewrite some components in Java to support modernization and others continue to operate on the mainframe. Such a hybrid approach looks like a pragmatic path forward because it balances the need for innovation with the reliability of existing COBOL systems.

Also, the incremental approach of modernizing legacy systems is becoming popular. There, functionality is broken down and migrated piece by piece. The incremental strategy lets rewritten and COBOL codes run side by side within a distributed, containerized microservices environment that communicates through APIs. Yes, integrating COBOL with modern systems can be challenging. But experts stress the importance of the strengths of existing COBOL systems and charging them with cloud-based functionalities.

However, there are clear drawbacks. A major issue is the shortage of COBOL developers, as many experienced programmers are retiring faster than new developers are coming in. A 2014 Computerworld survey of over 350 IT professionals showed that nearly half had already seen a shortage of COBOL talent.

It’s not hard to foresee that in less than five years, there could be a significant gap in COBOL expertise. According to IBM, the average age of a COBOL programmer is 58, and around 10% retire annually. So, a shortage of approximately 84,000 mainframe developers is a likely thing. Businesses that fail to adapt in time could face major challenges as their systems and COBOL code become too difficult to maintain.

Today, companies are at a crossroads: They can either go on maintaining COBOL applications and deal with labor shortages or migrate to more modern programming languages. Some organizations are exploring generative AI tools (like those offered by IBM or Open AI) to reorganize their legacy COBOL codebases. But the simplest solution may be to shift away from COBOL to the newer alternatives.

It’s likely that we will see a shift from COBOL to languages like C#, Java, Python, and others in the coming years. The good news is that this migration process can be automated. Migration is absolutely feasible for businesses looking to modernize without building their systems from scratch.

Recap

The history of COBOL is a testament to its lasting impact on the computing world. From its creation in the 1950s to its ongoing use in crucial sectors like finance, government, and healthcare, COBOL has proven its value. Newer programming languages and technologies may make it seem outdated but COBOL remains firmly in legacy systems that power vital operations.

Looking ahead, COBOL’s future will likely differ for a particular industry and organization. However, there’s a clear trend toward moving away from COBOL. Rewriting millions of lines of code is a daunting, costly task, which is why many businesses aren’t rushing to abandon COBOL. If you’re seeking a more efficient way forward, automating the migration process with tools like the Ispirer Toolkit is what can make the transition painless. With over 50 successful projects to its name, it offers a reliable way to move COBOL systems to modern programming languages. Since change is inevitable, managing it on your terms is best!