Posted on 2021-10-27
The world of technology is changing rapidly. When technology becomes outdated, it isn’t easy to solve bugs and other problems because of a lack of support and service providers. Businesses cannot sustain in today’s competitive market with an obsolete system.
Thanks to the application modernization services approach that gives new life to the monolithic applications, businesses can now meet their top priorities. According to the Markets and Markets report, “The growth of application modernization could be USD 24.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 16.8% from 2020 to 2025.” Key factors that increase the app modernization market are the cloud-native approach and Service-Oriented Structure.
It is the software development equivalent of renovating an older home to take advantage of improvements to efficiency, safety, and structural integrity. In other words, it is the process of repurposing your old legacy application with its features, internal architecture, and platform infrastructure to meet changing business ecosystems to comply with the enhanced expectations of your customers and employees. Rather than replacing it totally, legacy modernization extends the lifespan of an organization’s applications while also taking advantage of technical innovations.
Better resource optimization
Innovation and modernization are more important amidst the disruptive backdrop of the COVID-19 pandemic and other ecological and geopolitical challenges. Moreover, when businesses are not ready to modernize their legacy application, technical debts start increasing. Statistics claim that maintaining the old legacy system makes up 60-80% of the IT budget in the average corporation.
Application modernization gives businesses the power to create new features and services that align with current operational, administrative, management needs. It is the right solution to attract and engage new customers. As per some market specialists, businesses can reduce their operational costs by up to 13% through modernizing their outdated systems. Also, they can boost their annual revenue by more than 14%.
There are many security measures to monitor and update in legacy applications as cyber threats keep increasing. However, without a good security plan to protect your company and its data, you may have a cyber-attack on your hands and end up losing customer and essential data.
On the contrary, cloud-native applications offer top-of-the-line security features that provide time and cost savings. As a result, you don’t need to put in as much effort as compared to legacy applications.
Growth in revenue
Application modernization also helps businesses to increase their revenue streams. When companies decide to expand their business, they can add new services or processes that can add value to the customers’ needs. A happy customer is more likely to recommend a business that generates more leads for the company. As a result, an application modernization plan is a key milestone of an enterprise’s overall digital transformation strategy.
Indocosmo system’s innovation team has laid out a foundational strategy for successful legacy app modernization by conducting a thorough assessment of prospective applications. This analysis includes an evaluation of the app’s technical characteristics, its suitability for a cloud migration or similar shift, the ROI of such a modernization, the application’s interdependencies with other systems and other criteria. Secondly, we develop a long-term application modernization roadmap to effectively manage resources keeping in mind that modernization is better served in a piece-by-piece approach rather than all at once.
Our services can help your IT teams to properly manage the performance and availability of your existing applications while obtaining the full scale of benefits associated with application modernization. If you haven’t explored the possibility of modernization yet, send us an email through our contact form or give us a call directly for a free consultation. Our technical experts can give you a clear idea of what modernization can do for your business and how to receive maximum benefits from it.
