What is Application Modernization? The Basics and Benefits Explained

In today’s fast-paced digital landscape, the need for businesses to remain agile and innovative is paramount. Application modernization is not just a buzzword; it’s a critical process for organizations seeking to keep their competitive edge. At its core, application modernization is about transforming existing legacy systems to become more aligned with current business needs, thus enabling companies to leverage new technologies and cloud capabilities.

Legacy systems, while reliable, often pose significant hurdles against the backdrop of evolving market dynamics. They can restrict the business’s ability to adapt to changes swiftly and can become a drag on the organization’s resources and capabilities. Application modernization is the bridge that helps businesses cross over from outdated technologies to a world where scalability, efficiency, and security are part of the standard operating procedure. This transition not only leads to more resilient and adaptable operations but also opens the door for innovations that are yet to be imagined.

The Evolution of Business Applications

Historically, business applications were built to last, with robustness and reliability taking precedence over flexibility. However, the technological landscape has changed, making adaptability and responsiveness vital traits for modern business applications. Such evolution has made it clear that modernization is not just desirable—it’s imperative for survival.

What is Application Modernization: The Basics

Application modernization, also known as legacy or software modernization, is the process of updating older software applications to retrofit them with newer computing capabilities. It may involve modifying the software’s platform infrastructure, internal architecture, or underlying code to introduce new usability features and functionalities.

Rather than retiring or entirely replacing a legacy system, application modernization extends the software’s lifespan. Think of modernization as the software equivalent of renovating or refurbishing an old property.

There are several approaches when it comes to application modernization. The choice largely depends on the nature and characteristics of the software in question, such as portability, architecture, and interoperability. Common application modernization patterns include:

• Lift and shift/rehosting: Moving the application as-is from a legacy infrastructure (such as on-prem servers) to a new environment (such as the cloud).
• Refactoring: Rewriting the application’s underlying code to retool its functionality or usability. This approach is often used to break down monolithic systems into smaller, independent microservices.
• Encapsulating: Extending the application’s scope by packaging its functions and data into an API. This is similar to creating microservices.
• Replatforming: Making slight changes to the software’s code and migrating the modified system to a new runtime environment – usually the cloud. It’s a middle ground between rehosting and refactoring.
• Rearchitecting: Modifying the software’s architecture by restructuring the code and internal workings to take advantage of newer capabilities.
• Rebuilding: Redesigning and rewriting the entire application from scratch while preserving the core functionalities, scope, and business specifications. This is usually done to change the programming language for compatibility or usability reasons.
• Replacing: As a last resort, you may choose to replace the entire application with a customizable SaaS equivalent but preserve all the data and standard routines. It’s still generally considered application modernization if the new solution mirrors the legacy system.

The importance of application modernization

Legacy modernization is a popular trend among organizations. The application modernization services market alone is a rapidly growing, multi-billion dollar industry. But why go through all that trouble to modernize legacy applications? From a financial and operational standpoint, this is the easiest way to maintain critical digital performance standards.

Most organizations hold on to legacy systems because they’re critical to the core business operations. Decommissioning such systems and starting from scratch would severely disrupt and disorient essential business processes. Also, newer does not always mean better, at least from a business perspective. Some legacy systems have no exact matches in today’s software market, making replacement difficult or downright impossible. In such cases, application modernization is the only way to ensure that mission-critical systems stay updated. Doing so is vital for the following reasons:

• Allows businesses to quickly leverage emerging technologies such as cloud computing, automation, VoIP, big data, blockchain, and the Internet of Things
• Upgrades legacy systems to modern functionality and performance standards
• Reinforces the system’s security protocols and measures to fend off new cyber threats and maintain regulatory compliance
• Shortens time to market and sharpens competitive edge
• Improves the system’s usability and scope, boosting employee productivity and encouraging a digital work culture

Why Modernization is No Longer an Option But a Necessity

Still stuck on systems from a bygone era, many businesses find themselves grappling with the limitations of their legacy technologies. Applications that cannot integrate with modern systems or scale appropriately become barriers to growth and innovation. Consequently, the decision to modernize is less about staying ahead and more about not falling irreversibly behind. The necessity arises from the need to:

• Enhance customer experiences by leveraging modern interfaces and functionalities that cater to current user expectations.
• Adopt cloud technologies to ensure scalability and flexibility, allowing businesses to respond quickly to market changes.
• Streamline operations and reduce costs through improved efficiency and the automation of manual processes.
• Improve data analysis and decision-making capabilities with advanced analytics and AI integration.

The benefits of application modernization

As much as you’d want to retain legacy systems, they could cripple business productivity if not properly maintained. Outdated legacy processes are not only costly to run but may also demotivate employees, increase security risks, and impair customer services. On the other hand, modernizing legacy applications presents several benefits.

Reduced costs

According to a report, organizations that embrace legacy modernization reduce their IT costs by up to 13 percent and could potentially boost productivity by more than 14 percent. Older systems are more likely to break down, so it takes extra effort, resources, and time to keep them running. By modernizing these systems, you eliminate many of their inherent problems without incurring the cost of a total IT overhaul.

Increased business agility

In addition to improved digital performance, legacy modernization also increases overall business agility. Modernizing accelerates your IT adoption rate, making your systems more reliable, flexible, faster, and easier to scale.

Improved support for modern workflows and employee productivity

Some modern workplace trends and business processes such as BYOD, remote work, intelligent data analysis, and unified communications are incompatible with most legacy platforms. Modernizing the existing software applications enables them to keep up with these new trends. This means your staff can enjoy modern workplace conveniences that enrich the work experience and amplify productivity.

Enhanced customer experience and brand reputation

Interactive and data-driven customer touchpoints such as CRMs, chatbots, and responsive web media are known to enhance the customer experience, build trust, and inspire purchase decisions. Only the most robust systems can provide this level of customer engagement and experience.

Benefit Breakdown

Benefit	Description
Improved Performance	Modernized applications run faster and more efficiently, leading to better overall performance.
Enhanced Security	Updating applications ensures they are protected against the latest security threats.
Scalability	Modern applications can scale more easily to accommodate growing amounts of users and data.
Cost Efficiency	Reduces the total cost of ownership through more efficient resource utilization and maintenance.
Better User Experience	Provides a more intuitive and responsive interface, improving user satisfaction and productivity.
Increased Agility	Enables quicker adaptation to changing market demands and business needs.
Integration with Modern Technologies	Allows for the incorporation of new technologies such as AI, IoT, and cloud services.
Business Continuity	Ensures that critical business operations continue without interruption.
Compliance with Regulations	Ensures applications meet current regulatory and compliance requirements.
Improved Collaboration	Facilitates better teamwork and communication through improved collaboration tools.
Data Insights	Enables advanced data analytics and insights for better decision-making.
Environmental Sustainability	Reduces the environmental impact by optimizing resource usage and enabling greener IT practices.

Identifying Your Modernization Needs

Identifying the need for modernization within your organization involves a comprehensive analysis of your current IT environment. This assessment forms the foundation of any successful modernization initiative.

Conducting an Application Portfolio Assessment

The first step is to conduct an application portfolio assessment. This systematic evaluation of your application landscape helps to determine the business value and technical fit of each application. By identifying applications that are critical and those that are redundant or obsolete, organizations can prioritize modernization efforts where they will have the greatest impact.

Prioritizing Applications for Modernization

Once the application assessment is complete, the next step is to prioritize applications based on various criteria, such as business criticality, cost of maintenance, user satisfaction, and potential for improvement. This prioritization ensures that resources are allocated effectively and that the modernization project aligns with the overall strategy and goals of the business.

Application modernization challenges

The process of modernizing legacy software applications is usually fraught with technical and logistical challenges. Its complexity requires a certain level of technical prowess and strategic planning. For instance, modernizing a single application may require coding, API integration, and hardware configuration to achieve the desired outcome. You may also have to untangle or modify the application’s dependencies. Here are some of the common challenges you should prepare for when modernizing legacy software:

• Ambiguity in IT planning
• Lack of adequate technical expertise
• Unclear modernization goals
• Undocumented or poorly understood legacy applications
• Lack of support for legacy systems
• Budget and time constraints
• Data loss and downtime risks

Overcoming Common Modernization Challenges

Overcoming common modernization challenges is central to ensuring that the transition from legacy to modern systems is successful. Failure to address these hurdles can result in cost overruns, project delays, and ultimately, an unsuccessful modernization effort.

Dealing with Legacy System Complexities

Legacy systems are often complex, with intricate dependencies and custom-built functionalities that can be difficult to replicate or modify. In many cases, documentation may be lacking or outdated, and specialist knowledge may have left the organization. Strategies to overcome this challenge include comprehensive documentation review, legacy system analysis, and involving individuals with historical knowledge in the project.

Managing Costs and Resource Allocation

The cost of modernization can be substantial, and companies must strike a balance between investing in the future and maintaining current operations. Proper budgeting, identifying cost-effective modernization approaches, and ensuring efficient use of resources are all critical to managing costs. Additionally, organizations may consider phased implementation to spread costs over time and reduce the impact on operational budget.

Key Takeaway: Application modernization is a multifaceted process that involves much more than just updating the technology stack. It’s about aligning business goals with IT capabilities to create a nimble and scalable foundation that can support continuous innovation and growth.

Addressing Legacy Modernization Issues

Like most skill and resource-intensive IT projects, application modernization might be too complex to navigate alone. From what we’ve discussed above, the biggest legacy modernization challenges involve lacking either the right expertise or tools. But although application modernization may seem daunting, the whole process becomes much easier when working with the right partner. A managed services provider can guide you through the various modernizing stages, from initial planning and execution to implementation.

Modernization Tools and Technologies

Empowering the application modernization journey, an array of tools and technologies play pivotal roles in facilitating and accelerating the transformation process. Selecting the proper tools and leveraging the most suitable technologies are decisive factors in achieving a successful modernization outcome.

Cloud Platforms and Services

Cloud computing platforms, such as AWS, Microsoft Azure, and Google Cloud, provide the necessary infrastructure, services, and environments to support scalable, on-demand application deployment. These platforms offer various tools that assist with computing, storage, networking, and security, enabling organizations to modernize applications at scale while controlling costs and complexity.

Modern Development Frameworks and Languages

Modern development frameworks like .NET Core, Spring Boot, and Angular, along with programming languages such as Python, JavaScript, and Go, offer enhanced capabilities for building scalable, performant applications. These tools support agile development practices and cater to the construction of microservices architectures, containerization, and CI/CD pipelines.

Preparing Your Team for Modernization

Having the right team in place is critical for any successful application modernization endeavour. The process involves not just technology changes but also a cultural shift within the organization. Preparing your team for these changes is an essential step toward ensuring a smooth transition.

Upskilling and Reskilling Strategies

Modernization often requires new skills and knowledge. Implementing upskilling and reskilling strategies will equip your existing workforce with the capabilities needed to leverage new technologies and adapt to new development methodologies. These strategies might include targeted training programs, workshops, and certifications.

Change Management and Adoption

Adopting new practices and technologies can be met with resistance from those accustomed to legacy systems. Effective change management strategies are necessary to facilitate adoption and mitigate any apprehension. Clear communication, involving stakeholders in the decision-making process, and providing support throughout the transition are essential tactics for successful change management.

Popular Quote: “The only constant in life is change.” — Heraclitus. Embracing this philosophy is essential when navigating the waters of application modernization.

Application modernization is a strategic initiative that extends far beyond the IT department. It holds implications for the entire business and, when executed effectively, can result in a formidable competitive advantage. As organizations continue to advance, those who recognize the critical nature of modernizing their application portfolio will be well-positioned to lead in the digital era.

Frequently Asked Questions

What are the risks of not modernizing legacy applications?

The risks of not modernizing legacy applications can be significant. Organizations may face increased cybersecurity vulnerabilities, operational inefficiencies, higher maintenance costs, and the inability to meet user expectations for functionality and performance. Additionally, companies risk falling behind competitors who embrace modern technology and the benefits it brings.

How does application modernization influence customer experience?

Application modernization has a direct and positive impact on customer experience by enabling faster, more reliable, and more engaging interactions with business services. Modernized applications offer enhanced usability, personalization, and accessibility across various devices, improving overall customer satisfaction and loyalty.

Can small businesses afford application modernization?

Yes, small businesses can afford application modernization by taking advantage of cloud services with pay-as-you-go pricing models and utilizing open-source tools to minimize upfront costs. Starting with small, incremental modernization projects can also help manage expenses while providing immediate benefits.

How to measure the success of an application modernization project?

The success of an application modernization project can be measured using a variety of metrics, such as improved system performance, reduced operational costs, faster feature development and deployment times, and enhanced user satisfaction. Tracking these KPIs before and after the modernization provides tangible evidence of the project’s impact.

What is the role of AI and machine learning in application modernization?

AI and machine learning play a pivotal role in application modernization by adding advanced analytics capabilities, automating routine tasks, and enabling predictive maintenance. These technologies can improve decision-making, enhance user experiences, and drive innovation within modernized applications.

Softlanding Helps Businesses Modernize Their IT

Softlanding is a professional & managed IT services provider specializing in all aspects of cloud migration on the Microsoft Azure platform. We also help organizations deploy and integrate essential Microsoft solutions such as Microsoft 365 and Teams. Start your application modernization journey on the right foot – with a knowledgeable, accredited, and vastly experienced IT partner.

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