Why Is the Terminal Emulation Market So Risky Right Now?

Terminal Emulator Risk

In recent months, the terminal emulation market has entered an unprecedented period of disruption. What was once a relatively stable and predictable corner of enterprise IT has now become a battleground marked by aggressive mergers and acquisitions (M&A), escalating cybersecurity threats, and a worrying decline in vendor support. For IT leaders and infrastructure managers, these shifts are not just technical concerns—they represent real operational and security risks that must be addressed with urgency.

The M&A Storm: When Stability Becomes Uncertainty

A key source of the market’s current instability lies in the aggressive consolidation activities sweeping through the sector. Several of the industry’s cornerstone vendors—such as Rocket Software, OpenText, Micro Focus (Attachmate), and Ericom—have undergone acquisitions or ownership changes that have introduced uncertainty into their product roadmaps, licensing models, and long-term support commitments.

For example, OpenText’s acquisition of Micro Focus in 2023 1 raised serious questions about how legacy terminal emulators like Reflection or Extra! would be maintained or integrated into OpenText's broader portfolio. This was further disrupted when Rocket Software almost immediately acquired the AMC arm of OpenText2.

These transitions can result in shifting priorities, delayed or discontinued updates, and sudden price hikes, all of which directly impact the reliability and cost-effectiveness of critical terminal infrastructure for enterprises.

Security Concerns: The New Threat Surface

Another growing concern is the rise of terminal emulators as a cybersecurity target. Many of these tools, often decades old and integral to legacy systems like IBM mainframes and UNIX servers, were not designed with today’s cyber threat landscape in mind.

Recent reports from cybersecurity analysts and threat intelligence firms suggest that hacking groups are actively exploring outdated terminal software as potential entry points into enterprise networks 3. The lack of modern encryption, weak session handling, and insecure user credentials in older emulators make them a soft target. As threat actors become more sophisticated and supply chain attacks more common, enterprises running unsupported or poorly maintained emulators are at serious risk of data breaches and operational disruption.

Decreasing Support and Patch Availability

Compounding the problem, many of the legacy vendors are scaling back active development and support. Organizations are reporting longer wait times for help desk issues, vague timelines for patch releases, and uncertainty around compatibility with modern IT environments such as cloud platforms and hybrid infrastructures. This trend leaves critical systems exposed at precisely the time when vigilance is most necessary.

Flynet's Dual Response to a Fracturing Market

Recognizing these challenges, Flynet is stepping in with a dual offering designed to provide immediate resilience and long-term security for organizations relying on terminal emulation.

1. Flynet Insure – Your Disaster Recovery Terminal Emulator

For organizations not yet ready to replace their existing emulator, or starting on that journey, Flynet Insure provides a disaster recovery (DR) solution hosted securely in the cloud, as a managed service, or on-prem. It’s a compliant, and modern terminal emulator that can be activated instantly in the event of a security breach or lockout.

Key advantages include:

  • Secure access from any device with a web browser
  • No installation required by end users
  • Full compliance with modern security standards (TLS 1.2/1.3, SSO support, multi-factor authentication)
  • Customisable for enterprise policies and branding

This solution provides a safety net—ensuring business continuity without requiring an immediate full transition.

2. Secure Switch-Out Campaign – A Fresh Start

For organizations ready to make a more permanent move, Flynet is offering a competitive switch-out campaign to transition customers to a 100% vendor-owned and developed terminal emulator. This solution is already trusted by some of the world’s largest enterprises, and unlike many alternatives, it is actively maintained with a forward-looking roadmap.

By switching, customers gain:

  • Transparent licensing and pricing
  • Consistent and responsive support (including telephone access to the dev team)
  • Proven enterprise-grade scalability and performance
  • Integration with modern IT environments, including cloud-native platforms
  • A springboard for future modernization initiatives, including full UI modernization and web service generation in minutes.

Conclusion: Time to Rethink Terminal Emulation Strategy

The terminal emulator may be a “quiet hero” of enterprise IT, often running in the background, enabling access to critical systems. Unfortunately, it is no longer immune to the forces reshaping the tech landscape. M&A disruptions, rising cyber threats, and shrinking vendor support make it imperative for IT leaders to re-evaluate their emulator strategy.

Flynet offers a path forward, whether as a fail-safe backup or a full replacement, to help enterprises regain control, reduce risk, and modernize their legacy access infrastructure.

Interested in learning more? Book a meeting with Flynet today to discuss how your organization can stay secure and operational in this volatile market.

Footnotes

  1. OpenText Completes Acquisition of Micro Focus – OpenText Newsroom: https://www.opentext.com/about/press-releases
  2. https://itassetmanagement.net/2023/12/07/rocket-software-is-buying-opentexts-application-modernization-and-connectivity-business-formerly-part-of-micro-focus
  3. ENISA Threat Landscape 2023 – European Union Agency for Cybersecurity: https://www.enisa.europa.eu/publications/enisa-threat-landscape-2023