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Enterprise Digital Platform

Application Modernisation Strategy, Benefits and Challenges

Navdeep Singh Gill | 27 October 2024

Application Modernisation Strategy, Benefits and Challenges
22:56
How to get started with Application Modernization?

Cloud Native Approach to Application Modernization 

Application Modernization refers to updating organization business applications to Cloud-Native, specifically modernizing the features,  

platform, on-premises infrastructure or data and technology stack. This process adopts 6R's strategy to redesign the present architecture towards continuous architecture with the automation of infrastructure and software delivery cycle, using SRE principles.

As good as it sounds, severe, complex issues must be addressed and resolved to achieve application modernization. This process involves issues like spaghetti code, inflexible architecture, and inability to scale. Let's review this process in depth.

 

Need for Business to be Agile and Competitive Thriving the Application Modernization Market

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Rapid Market Growth

The global application modernization services market is projected to grow from $11.4 billion in 2024 to $38.7 billion by 2032. This represents a significant growth trajectory, with an impressive CAGR of 16.5% over the forecast period

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Increased Investment

The application modernization market is expected to experience a substantial increase, from an estimated $15.3 billion in 2023 to $52.28 billion by 2030, reflecting a CAGR of 16.8% from 2024 to 2030

Understanding the Legacy Application?

Legacy typically refers to an application's monolithic architecture. It is a single-tier application where all the pieces are built on one platform, usually with one language. This does not mean legacy applications are small; they can be as big as an elephant, making it difficult to scale as per the requirements. One single bug can affect the workings of an entire application. 

 

Legacy systems are outdated technologies but are critical in day-to-day operations. Rolling out a minor new feature or version can be as big as rolling out the whole application again. Legacy applications are also called Monolithic applications, which consist of a single codebase where all components, such as authorization, business logic, databases, messaging service, etc., are combined on a single platform. These systems have become fundamental to the working of an application and the organization; thus, replacing them is not always easy. 

The Imperative of Application Modernization

Change is an undeniable truth. Those who fail to adapt to the ever-changing world may struggle to survive. This principle applies to the technology industry as well, where new releases emerge almost every day. However, it's important to note that modernization does not imply that technology will replace human effort. Instead, modernization empowers organizations to enhance productivity, monitor outcomes, and delve deeper into analysis. Let's explore Application Modernization in more detail.

Why Modernize Legacy Applications?

Modernizing legacy applications is not just a choice but a necessity in today's fast-paced and competitive business landscape. Although they may have served organizations well in the past, they can hinder growth and innovation if not updated and modernized.

There are multiple compelling reasons why modernizing legacy applications is crucial.

1. Ever-Evolving Landscape, Technical Specifications

Firstly, technology constantly evolves, and organizations must stay current with the latest advancements to remain competitive. Legacy applications, often built on outdated technologies, can hinder an organization's ability to leverage new tools and platforms, resulting in inefficiencies and missed opportunities. Not being compatible with the latest hardware makes the application obsolete.

2. Boost Productivity and Efficiency

Secondly, modernizing legacy applications enables organizations to boost productivity and efficiency. By incorporating new technologies, frameworks, and architectures, organizations can streamline processes, automate tasks, and optimize workflows. This not only enhances operational efficiency but also frees up resources that can be redirected toward more strategic initiatives.

3. Harness the Potential of Data

Moreover, modernization empowers organizations to harness the power of data and analytics. Legacy applications may lack the capability to effectively collect, store, and analyze data, which limits an organization's ability to gain valuable insights and make data-driven decisions. By modernizing these applications, organizations can unlock the full potential of their data and derive actionable insights that drive business growth.

4. Ensure Security and Compliance

Another vital aspect of modernizing legacy applications is ensuring security and compliance. Older applications may have vulnerabilities that cybercriminals can exploit, putting sensitive data at risk. Modernization allows organizations to implement robust security measures, such as encryption, authentication protocols, and regular updates, to safeguard their data and protect against cyber threats.

5. Seamless User Experience

Additionally, modernizing legacy applications positively impacts the overall user experience. Outdated interfaces and functionalities can frustrate and discourage users from engaging with the application. By modernizing the user interface, improving usability, and incorporating new features, organizations can enhance user satisfaction and encourage user adoption.

6.  Managed Costs, Upgrades and Vulnerable Security 

One must think that a monolithic architecture is built as a single-tier application, making it less expensive to scale, but this becomes less true over time. Supports and updates for older systems are usually expensive and can result in conflicts because of one codebase.
The inevitable old application does not always receive upgrades to fulfil today's security requirements. This leads to loose ends and compromised security on all layers.

 

Organizations need to follow a strategic approach to modernize legacy applications successfully. This includes conducting a thorough assessment of the existing application, identifying areas for improvement, and defining clear goals and objectives.

 

The next step is redesigning the application, aligning it with the desired outcomes and leveraging modern technologies and architectures. Once the redesign is complete, the application can be reconstructed, considering scalability, performance, and security.

 

Finally, monitoring the application's performance and training the team to effectively use the modernized application ensures a lasting effect and continuous improvement.

Legacy applications and infrastructure are becoming unsustainable and non-cost-effective in the cloud-native world. Checkout, Key Aspects of Infrastructure Modernization

Benefits of Modernizing Legacy Systems and Applications

1. Maintaining Legacy Software: The Cost and Complexity

Much of a company's IT budget goes toward maintaining legacy systems. In addition to being complex, maintaining outdated software is highly costly. As a result, these systems no longer meet the business needs or perform certain functions they were built to perform. Technology and processes have advanced rapidly since the development of these archaic systems, making it difficult to maintain them.

 

Furthermore, finding individuals with relevant skill sets and experience creating and maintaining outdated systems becomes increasingly more challenging. Consequently, many companies are forced to outsource dedicated IT support and pay exorbitant salaries to personnel who could help maintain legacy software. Instead of spending vast amounts on maintaining legacy software, businesses should consider modernizing it to reduce costs and complexity.

Businesses should consider modernizing legacy applications to reduce maintenance costs and complexity.

2. Enhance Performance With Modern Technology

By modernizing legacy software, you can identify opportunities and threats associated with the existing technology. Businesses can combine what is still relevant from their existing software and build something new using application modernization services instead of replacing their old system and building a new one from scratch. Enhancing your legacy system with modern technology and eliminating inefficiencies and bottlenecks can improve it.

 

Companies can address productivity issues by automating and integrating IT and business solutions. By increasing productivity, businesses can perform operations with less manual labour, lower costs, and fewer downtimes.

3. Modernize Legacy Applications to Prevent Security Threats

Security threats are more likely to affect legacy systems. You will no longer get security patches whenever the developer stops supporting or updating the software. A significant challenge has also become disaster recovery and backup. Using old SSL and Java exploits, your network will be more vulnerable to malicious hackers.

 

Therefore, your company and its users might be at risk of data theft or a hack of the entire system. The modernization of legacy software allows businesses to enhance functionality and improve security. Cybercrimes can be identified and prevented with newer technology applications built with advanced security measures. You can also reduce the risks of cybersecurity threats by updating your security patches regularly and using cutting-edge SSL encryption.

Technology Stack for Application Modernization 

Application modernization involves updating and improving existing software applications to leverage modern technologies and enhance performance, scalability, security, and user experience. Here are some key technologies commonly used for application modernization: 

  1. Cloud Computing: Cloud platforms like AWS (Amazon Web Services), Azure (Microsoft Azure), and GCP (Google Cloud Platform) provide scalable infrastructure and cloud-based services that allow organizations to move legacy workloads to the cloud for greater scalability, flexibility, and cost-effectiveness and access to a variety of managed services, including databases, analytics, and machine learning. Edge Computing vs Cloud Computing 

  2. Containerization: Docker, Kubernetes, and other containerization technologies offer a lightweight and mobile solution for packaging, deploying, and managing applications and dependencies. By breaking down legacy applications into smaller, easier-to-manage parts, containers improve scalability, resource utilization, and deployment speed. Containerization - A Virtual Operating System

  3. Microservices Plan: The plan incorporates breaking down strong applications into humbler, openly coupled organizations that can be unreservedly made, sent, and scaled. This basic approach propels smoothness, versatility, and flexibility, allowing organizations to modernize inheritance applications by refactoring them into microservices-based structures. Microservices Architecture

  4. APIs (Application Programming Interfaces): APIs enable steady integration and communication between divergent systems and organizations, empowering interoperability and versatility. By revealing APIs, organizations can modernize estate applications by enabling them to be associated with cutting-edge cloud organizations, third-party applications, and convenient contraptions, developing improvement and collaboration. API Development Best Practices 

  5. DevOps Practices: DevOps sharpens combines computer program change (Dev) and IT operations (Ops) to robotize and streamline the program transport lifecycle. Grasping DevOps sharpens engages organizations to modernize estate applications by moving forward collaboration, enlivening movement, and extending agility through tireless integration, diligent movement (CI/CD), and system as code (IaC). DevOps Best Practices 

  6. Serverless Computing: Serverless computing stages like AWS Lambda, Purplish Blue Capacities, and Google Cloud Capacities enable organizations to develop and pass on applications without directing fundamental systems. By leveraging serverless computing, organizations can modernize estate applications by offloading operational overhead, advancing flexibility, and reducing costs through pay-per-use evaluating models. Serverless Computing

  7. Modern Programming Languages and Frameworks: Accepting modern programming languages such as Python, JavaScript (Node.js), and Kotlin, along with frameworks like React, Exact, and Spring Boot, can help organizations modernize inheritance applications by improving architect productivity, code reasonability, and execution. 

  8. Low-Code/No-Code Platforms: Low-code and no-code headway stages engage organizations to rapidly develop and pass on applications with irrelevant hand-coding, utilizing visual meddle and pre-built components. These stages can animate the modernization of estate applications by locks in commerce clients and citizen engineers to form and rehash applications rapidly. Low-Code Development Future and its Platforms

  9. Security and Compliance Tools: Modernization endeavours should prioritize security and compliance by coordination propels such as identity and get to the organization (IAM), encryption, security checking, and compliance computerization into the application headway and sending shapes. DevSecOps Tools for Continuous Security

As technology continues to evolve, the way we develop applications has also transformed. Cloud native development has emerged as a modern approach that offers numerous benefits for organizations looking to stay ahead in the digital era. Embrace Cloud Native Approach for building Applicaitons

6R's Approach to Legacy Application Modernization

It is important to note that the appropriate strategy will vary depending on the specific needs and constraints of the organization and the application. To decide on the best strategy, it's good to assess the current state, goals, and constraints. 

 

1. Encapsulate: This method isolates the core functionality of a legacy system into modular components or services. By enclosing these features, one can create a layer of abstraction that shields the rest of the system from its complexity. This facilitates the integration of new technologies and allows future updates to be carried out without affecting the entire system.

 

2. Re-platform: Replatforming involves transferring a legacy system to a new platform or infrastructure while retaining its existing functionalities and features. The system could be moved to a cloud, upgraded to a new operating system, or switched from one hardware model to another. The objective of re-platforming is to increase system performance, scale, and stability while minimizing the impact on business operations.

 

3. Refactor:  Refactoring aims to improve maintainability, readability, and extensibility without changing the external behaviour of a legacy system by restructuring its existing codebase. This involves identifying and eliminating redundant code, improving the organization of codes, and adopting modern coding standards and best practices. Refactoring will help to bring down technology debt, increase the productivity of developers, and pave the way for further improvements and optimizations.

 

4. Redesign: To address its specific limitations and inefficiencies, a legacy system must be redesigned and rebuilt. This process may involve restructuring the system's architecture, designing user interfaces, and adopting new technologies and frameworks. The aim of the redesign is to modernize the system architecture and improve its performance, scale, and usability in line with today's business needs and industry trends.

 

5. Rethink: Rethinking involves fundamentally reassessing the existing arrangement and convenience of the system. In setting up modernization, it suggests reassessing the design, recognizing out-of-date sharpening, and considering the elective more capable courses of action. Rethinking is noteworthy to ensure that the modernized adjustment meets current prerequisites and utilizes advanced progress and best sharpening.

 

Application Modernization Strategy

Consider how much the Telephone has evolved. We now have mobile devices that allow us to call from anywhere, no wires, and SIM cards, a pay-as-you-use model that has made our lives so easy that we cannot imagine a day without them. Also, they are available at cheaper rates. Think about what huge loss we would be taking for ourselves if we had not accepted mobiles. In the same way, organizations using digital products or providing digital services must allow themselves to stay updated.

 

If modernization is applied correctly, new technologies, architectures, and designs can not only help organizations' productivity but also help their business grow exponentially. Modernization means that organizations move away from ageing software and reinvent their products/services using new technologies. The following are some strategies to enable modernization in your organization to deliver innovation at scale.

 

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Accelerating Application Modernization with Modern CI/CD to deliver software faster and streamlining hybrid, multi cloud strategy with Google Anthos

Strategy 1. The Mandatory Application Assessment

It includes conducting an assessment of existing applications to understand the business capabilities of the application and to understand all the dependencies and challenges that may come while shifting technology. Understand database schema and any new capabilities are to be added to existing functionalities. In short Application, Assessment is to understand all the use cases and what we want to achieve 

Strategy 2. Redesign to Align with Goals 

We need to Rearchitect or Redesign workflows. In this stage, we create workflows/ designs for everything from UI design to architecture used in the backend of the application to developing a plan for database schemas. In this phase, we design all the process workflows to decide what technology, language, architecture, database, or cloud service would best suit the use case. When the re-designing is complete, we will be ready with the execution plan.

Strategy 3. Reconstruct your Aged Products 

This phase is when the real modernization of your aged products starts. Developers start converting the plan made while architecting to an actual working product. It includes everything from building a product from scratch to testing it. At the end of this phase, we have our working model ready.

Strategy 4. Rehost your Applications and Database

The Future is Cloud. In this phase, the application and database are deployed on the cloud using the right services to leverage your application's performance and scale and handle the load when needed. Your apps are then made scalable and robust, handling loads when needed while taking care of your cost.

Strategy 5. Monitoring is the key to success

By this time, your application is ready to be used by consumers. You can regularly monitor your application performance and make changes as your business grows. After this stage, you witness the real effect of modernization on your application.

Strategy 6. Train your Team for a Lasting Effect

Training the team to use the latest products and technologies is equally important as modernizing your application.

Modernization does not only mean making your applications work on modern technologies; rather, it is also modernizing how your team works and how your workflow is modernized in an organization.

Do you have enough tools to measure the performance of your team?

Those updated tools can help you analyze what your strong point is and where the organization needs improvement. Is your team giving scrum correctly, or is your feedback mechanism strong?

Only advancing technology is not the key to success; rather, educated and trained employees who use modernized products effectively are the key to success. 

Modernizing the platform infrastructure, internal architecture, code, and database to embrace agile development, reduce complexity, and increase performance. Application Modernization Solutions

 

Choose the Right Modernization Strategy

Modernization is necessary to excel in this competitive world. Organizations with a growth mindset and a big picture understand the importance of staying updated and keeping up with technology. If applied rightly, modernization can help organizations deliver the best, increase productivity, and enable exponential growth.

Getting Started with Application and Data Modernization

  1. Current State Access: Start by conducting a comprehensive appraisal of your existing applications, foundation, and innovation stack. Recognize bequest frameworks, their conditions, and ranges for change. Assess variables such as versatility, execution, security, and compliance to decide the reasonableness for modernization.

  2. Definition of Modernization Goals: Clearly characterize your targets and objectives for application modernization. Decide what you realize through modernization, whether moving forward with nimbleness, lessening costs, improving client encounters, or leveraging modern innovations. Set up quantifiable measurements and key execution pointers (KPIs) to track advance and assess victory.

  3. Prioritizing Applications: Prioritize applications based on components such as exchange regard, specialized complexity, and potential for upgrade. Recognize essential systems that require provoke modernization and those that can be tended to a while later. Consider factors such as ROI, influence on commerce operations, and course of action with imperative goals when prioritizing applications for modernization.

  4. Opting for Modernization Approach: Based on the characteristics of each application and your organization's targets, select the first reasonable modernization approach. Common approaches include rehosting (lift and move), refactoring, rearchitecting, re-platforming, or supplanting estate systems with commercial off-the-shelf (Bunks) courses of action. Consider taking a toll, time-to-market, danger, and influence on exchange coherence when choosing the approach.

  5. Develop a Modernization Roadmap: Create a point-by-point guide laying out the grouping of exercises, breakthroughs, and timelines for modernizing each application. Break down the modernization plan into reasonable stages, beginning with pilot ventures or proof-of-concepts to approve the chosen approach. Characterize parts and obligations, apportion assets, and set up administration components to guarantee the guide's successful execution.

  6. Select Modernization Technologies: Recognize the advances and devices required to bolster your modernization endeavours. Consider compatibility with existing frameworks, versatility, security, and merchant bolster when selecting modernization innovations. Use cloud computing, containerization, microservices design, DevOps hones, and other present-day instruments and systems to streamline the modernization handle and accomplish wanted results.

  7. Build Internal Capabilities: Contribute to building internal capabilities and the ability to bolster application modernization activities. Provide preparing and upskilling opportunities for your advancement groups, modellers, and IT staff to familiarize them with advanced innovations, best practices, and strategies. Energize collaboration, information sharing, and experimentation to cultivate a culture of persistent learning and development inside the organization.

  8. Manage Change and Communication: Compelling altered administration and communication are fundamental for fruitful application modernization. Lock in partners at all levels of the organization, counting commerce pioneers, IT groups, and end-users, to communicate the basis, benefits, and effects of modernization endeavours. Address concerns, request criticism, and include partners in decision-making to guarantee arrangement and relieve resistance to alter.

  9. Iterate and Improve: Effective change administration and communication are fundamental for successful application modernization. Engage partners at all levels of the organization, including commerce pioneers, IT groups, and end-users, to communicate the basis, benefits, and effects of modernization endeavours. Address concerns, request criticism, and include partners in decision-making to guarantee arrangement and relieve resistance to change.

Application Modernization Challenges & Solutions

  • High Cloud Migration Cost: Moving inheritance applications to the cloud can cause vital costs, tallying development costs, participation costs for cloud organizations, and advancing operational costs. Moreover, organizations may contribute to upgrading or upgrading applications to totally utilize cloud-native capabilities and energize, counting to the by and large, which has taken a toll. The early theory required for cloud development can be a basic boundary for organizations, especially those with confined budgets or cash-related imperatives.


  • Lack of Skilled Professionals: Application modernization regularly requires skill in cloud propels, cutting-edge programming tongues, DevOps sharpens, and other specialized aptitudes. Be that because it may, there's frequently a lack of talented specialists with experience in these zones. Organizations may fight to find or bear qualified capacity, leading to delays or risky utilization of modernization exercises. The requirement of skilled specialists can also anticipate the determination of cutting-edge developments and best sharpens, confining the practicality of modernization endeavours.


  • Risk and Conflicts: Application modernization exercises can display perils and clashes due to the complexity of inheritance systems, conditions between components, and potential unsettling influences on commerce operations. There may be challenges in ensuring compatibility, data judgment, and regulatory compliance amid the modernization plan. Additionally, clashing needs, resistance to modification, and social boundaries in the organization can square development and make contact between accomplices included in the modernization exertion.


  • Cost-Intensive Approach: Modernizing inheritance applications is routinely time-consuming and resource-intensive. It requires serious examination, organizing, and execution to ensure compelling development, integration, and optimization of modernized applications. The costs related to upgrading or refactoring inheritance code, actualizing unused propels, and planning staff can quickly incorporate up, making application modernization an over-the-top endeavour for organizations, especially those with confined resources or competing needs.


  • Vendor Lock-In Situation: Organizations may confront seller lock-in circumstances when they become intensely subordinate to a particular cloud supplier or innovation merchant for their modernization endeavours. This reliance can restrain adaptability, increase costs, and ruin advancement by making it troublesome to switch to elective arrangements or use competing advances. Merchant lock-in can also pose dangers related to benefit disturbances, changes in estimating or terms of benefit, and the need for interoperability with other frameworks or stages.

Best Practices for Modernizing Applications

Organizations can use several strategies and best practices to modernize their applications. The following are some best practices for application modernization:

1. Embrace Microservices

Adopting a microservices approach can make your application more scalable and agile. An environment that uses microservices separates each process into a separate service with its logic and database. As a result, services are independent and scalable, making updating or changing them more accessible.

2. Identify Applications that need to be Modernized

It is essential to identify all applications and modernize them. Once selected, it is important to sort them according to their priorities and requirements. We must then understand the risks associated with modernizing each application and develop an approach for minimizing those risks. The value of the modernized app should be weighed against the time and costs associated with its modernization. It is viable to proceed with modernization if it is expected to improve agility, scalability, reliability, and performance.

3. Take Advantage of Cloud Computing

Modernizing apps means more than automatically moving them to the cloud. It is essential to consider how much data will be involved, what workflows will be required, and how devices and the cloud will communicate.

4. Keep Track of Performance Metrics

To track the performance of applications at the code level, it is essential to design performance metrics. Monitoring includes all aspects of the infrastructure, including the cloud, databases, and networks. Identifying problems before they arise and improving areas allows you to prevent them from occurring. 

Comprehensive Modernization Approach

Beyond a doubt, it is evident that organizations need faster operations and services in today's dynamic landscape. In contrast, legacy products tend to be more costly and demanding. Application Modernization and its Challenges offer new and different opportunities to organizations, leveraging new IT architecture. The best part is that it can be done according to and within the parameters set by the organization. Thus, organizations can achieve the Digital Transformation they desire by modernizing their legacy applications while addressing these challenges and considering the approaches mentioned above.

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navdeep-singh-gill

Navdeep Singh Gill

Global CEO and Founder of XenonStack

Navdeep Singh Gill is serving as Chief Executive Officer and Product Architect at XenonStack. He holds expertise in building SaaS Platform for Decentralised Big Data management and Governance, AI Marketplace for Operationalising and Scaling. His incredible experience in AI Technologies and Big Data Engineering thrills him to write about different use cases and its approach to solutions.

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