The changing technology landscape – a growing acceptance of AI, widespread adoption of cloud infrastructure and the growth of cloud native tech – presents appealing opportunities for businesses looking to reshape their tech stack by developing an application modernization strategy.
However, these opportunities lead to difficult questions for IT teams, such as:
- Which applications hold the most value for the organization?
- How do recent technologies impact our approach to the app portfolio strategy?
- Which applications are suitable for investment and improvement?
- Where and how should one begin?
Effectively managing the solutions to these questions is challenging. A variety of factors influence the approach to application modernization; and different groups of stakeholders may have very different perspectives.
This uncertainty often leads organizations to proceed cautiously. Unfortunately, caution can lead to organizations being overwhelmed by the rapid pace of technological change and the shifting context of new projects and potential solutions.
A significant portion of existing literature focuses on weighing the pros and cons of technical decisions in applications modernization; but it’s important to recognize that successful implementation depends not only on these technical aspects but also on a broader understanding. The process of decision-making and prioritization must consider the bigger picture, as application modernization is just one component of overall business transformation.
Traditional Application Modernization Strategies
Usually, when modernizing a specific application, several strategies are considered. These are typically called the ‘5Rs’. Listed from the least to most severe technological changes required, these are:
Rehost – to redeploy the application component to other infrastructure (physical, virtual or cloud) without modifying its code, features or functions. Also known as “Lift and Shift.”
Replatform – to migrate to a new runtime platform, making minimal changes to the code, but not the code structure, features or functions. This includes updates to the underlying technologies or products.
Refactor – to restructure and optimize the existing code (although not its external behaviour) removing technical debt and improving nonfunctional attributes.
Rearchitect – to materially alter the code to shift it to a new application architecture and exploit new and better capabilities.
Rebuild – to redesign or rewrite the application component from scratch while preserving its scope and specifications.
New Approaches to Application Modernization
To these traditional strategies we can add some new ‘Rs’:
Repurchase/Replace – to eliminate former application components altogether and replace with either a CotS product, or by adapting other internally available solutions.
Retain & Re-assess – a pragmatic option that delays technological updates until the context changes and another option becomes viable. Most often used when assessing a portfolio, not individual applications.
Retire – sometimes the context is different enough that processes can be adapted to remove the need for the specific application altogether. This is not usually cost free, as migration is still needed, however it works towards a more rational and maintainable portfolio.
And finally:
wRap/Encapsulate – to leverage and extend the application features by encapsulating its data and functions, making them available as services via an API. However, this is significant and different enough in its implications to the other ‘Rs’ that we should consider it a separate strategy altogether.
Each of these ‘Rs’ has advantages and disadvantages, and depending on the economic and technological context, the viable options change.
Starting the Application Modernization Process
The timing of your application modernization strategy is critical. Acting prematurely or being delayed can impact both operational continuity and financial resources. For a strategic and well-informed approach to application modernization, it’s recommended to stick to best practices that guide the decision-making process; and present a business case for your decisions that considers both the benefits and the, sometimes unavoidable, costs.
Ideally, the assessment and prioritization of any application modernization project should be an ongoing process, done repeatedly, to minimize impact and avoid missed opportunities. Here are some key considerations to help determine when the time is right for application modernization:
- Assess Business Goals and Objectives
Before embarking on the modernization journey, align modernization efforts with overarching business goals. Evaluate how application modernization can contribute to achieving these objectives, whether it’s improving customer experience, enhancing scalability or streamlining operations. Make sure to include adherence to regulatory or compliance constraints. Ensuring a clear correlation between modernization and business outcomes is a fundamental starting point. - Track and Analyze Technical Debt
Accumulated technical debt, such as outdated frameworks, inefficient code and compatibility issues, can impede an application’s performance and hinder development speed. Regularly assess the level of technical debt accrued within the application. Once technical debt reaches a point where maintenance becomes cumbersome or feature development is hindered, it’s a signal that modernization is warranted. - Gather User Experience and Feedback
Keep a keen ear to user feedback and sentiments. Deteriorating user experience, frequent complaints or declining user engagement are indicators that modernization could enhance user satisfaction. Modernization efforts should be guided by a user-centric approach, addressing pain points and optimizing the user journey. - Explore Market and Industry Trends
Stay attuned to shifts in the market and industry trends. If competitors are leveraging modern technologies or offering innovative features, it might be time to consider modernization to remain competitive. Adapting to market demands ensures the application remains valuable and aligned with evolving customer expectations. - Consider Scalability and Performance Metrics
Monitor application performance metrics and scalability capabilities. If the application struggles to handle increased user loads or experiences frequent downtimes, modernization can bolster scalability and improve performance, enabling seamless growth. - Perform Cost-Benefit Analysis
Conduct a thorough cost-benefit analysis to evaluate the financial implications of modernization. Consider factors such as potential revenue growth, cost savings from reduced maintenance, and the expenses associated with modernization efforts. A well-balanced assessment ensures that modernization initiatives align with the organization’s financial health. - Understand Legacy System Challenges
Some concerns are almost uniquely related to legacy systems. Frequent breakdowns, security vulnerabilities, and difficulties integrating with other systems are indicators that modernization could mitigate these challenges. The availability of support or updates can even impact compliance to standards and regulations. - Monitor Emerging Technologies
Keep an eye on emerging technologies that could transform your industry or offer novel opportunities. Modernizing to incorporate these technologies can position your application as an innovative leader and enable you to capitalize on new trends.
Deciding when to modernize applications requires a holistic evaluation that includes business goals, technical constraints, user feedback, market dynamics and financial considerations. Using these best practices for a proactive strategy, organizations can make informed decisions and turn application modernization into impactful opportunities for long-term business growth and agility.
Modernize Your Legacy, Accelerate Your Future
At Stefanini, our Application Modernization Service takes the systems and platforms you already rely on a day-to-day basis and optimizes them to improve your productivity and increase ROI. So, you are prepared for anything the future can throw at you. Our clients have already experienced the transformational effects of a partnership with Stefanini.
