Tag Application

Many enterprises modernize legacy applications just to keep up and avoid looking outdated. Certain leaders hastily dive into digital transformation without fully understanding its value.

Leaders who don’t fully understand digital transformation might put minimal effort into legacy application modernization. But it should be taken seriously for several reasons.

First, you must avoid any skepticism about innovations. McKinsey’s research shows that companies giving their developers innovative tools see four to five times the revenue growth of their competitors.

If you’re unable to predict trends or be a trendsetter and innovator, don’t be discouraged. Few people possess those abilities. However, both startup entrepreneurs and seasoned business executives can, at the very least, become early adopters. According to the diffusion of innovation theory, these individuals are enthusiastic about new ideas and eager to embrace new technologies as soon as possible. They enjoy leadership roles and leverage opportunities for change.

As an entrepreneur, addressing your reactive behavior reveals numerous opportunities.

Let’s imagine that an organization aims to avoid performance interruptions. The software is functional, so upgrading it might not seem urgent. However, surprises may arise: legacy programs pose security risks due to outdated design, hinder scaling for advanced functionality, and lack compatibility with the latest software.

For example, your fear of modernization includes critical downtimes. Organizations require constant data access, and any interruption is problematic. Tech failures prompt disaster recovery, impacting business. On-premise servers feel controllable, while the cloud may seem out of control. Yet, on-premise systems still need servicing, causing unavoidable downtime.

Gartner Inc. reports that 91% of CIOs acknowledge technical debt from legacy programs impacting agility and delivery speed.

Plan migration over low-activity periods to prevent downtime. Developers can keep the old software as a backup until they’re certain the migration was successful. Ensure a reliable internet connection, review backup plans, encrypt your data, and enhance cybersecurity for a smooth migration.

Usually, the main challenge of a business owner lies in not knowing how to modernize, especially without tech expertise. Who has to design this plan? Who has to execute it? Finding experienced staff or the right external partner is essential. What’s the cost of legacy software modernization?

It is not only about finding the right tools and technologies. Modernization requires investment when you need to update or replace old systems and organize special training for employees. If you are an internal or external Project Manager, the real challenge is to present your strategy and get the necessary funding for this project from stakeholders.

If we talk about cloud migration as an example of app modernization, you may have already invested in on-premises tech, providing you with budget clarity. Moving to the cloud might appear to be an additional and unnecessary cost. Keep in mind that you can modernize complex on-premises apps incrementally. Begin with smaller, well-defined projects to conserve resources. As you achieve success, gradually take on more complexity and scope.

To overcome these fears, both stakeholders and project managers must answer specific questions to see opportunities, not obstacles.

From a business standpoint, consider three drivers:

• Does the legacy application align with new demands from digital businesses?
• Should we upgrade old software to enhance its business value?
• Do our legacy systems respond to agility principles?

From the IT perspective, focus on three essential drivers:

• Is the total cost of legacy systems maintenance sensible?
• Is the technology’s complexity sensible?
• What risks arise from using obsolete IT components?

When drivers from both business and technical viewpoints align, new opportunities emerge and can be capitalized on.

Typically, modernizing your old programs involves rehosting, refactoring, re-platforming, re-architecting, or rebuilding. Each approach has pros, cons, and different costs, risks, and time frames.

Rehosting, also known as lift-and-shift migration, is the simplest approach. It involves transferring on-premise applications to the cloud without modifying the code, but it may limit the opportunities for improvement. On the other hand, refactoring is a more time-consuming and expensive process. It requires a thorough reevaluation of the business logic and software design, but it can result in enhanced performance.

This is the risk-return principle — the balance between less effort and risks for more value. Conduct business and technical audits to find this golden mean in your modernization path.

In Conclusion

Modernizing may seem daunting, but when you delay your system’s upgrade, it can bring severe long-term consequences. Legacy technology systems that are unsupported, unscalable, or expensive present a substantial risk to the competitiveness of your business. With outdated software, you may limit your business’s innovation and scalability, because it is often impossible to integrate them with modern applications. In the long run, you lose a crucial competitive edge slowing down your digital transformation.

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