How to Choose the Right Strategy for Modernizing Legacy Applications?

Quick Summary: 74% of companies fail to accomplish legacy system modernization. Do you know why? Because successful modernization requires a smart strategy. Read on to discover how to formulate a successful legacy app modernization strategy that will help your business survive and thrive in today’s dynamic business environment.

The business world is evolving at breakneck speed and organizations are in a race to make themselves digitally relevant and fit for next-gen operations. Therefore, most organizations have accelerated their digital transformation initiatives. This includes embracing modern cloud technologies and initiating the upgradation of their legacy systems with more advanced modernization strategies to remain competitive and sustainable. Even a survey stated that 87% of business leaders said modernization is essential to grow and succeed in a business.

So, like every fast-growing business, are you ready to jump on the modernization bandwagon?

But before diving into it, it’s crucial to analyze a few key components in mind – a sound business case for why you need modernization, what technology solutions precisely aligned to your specific business needs and timeline, and most importantly, developing a roadmap of how to successfully modernize legacy applications to have a clear visibility of progress. Let’s dig in!

9 Key Factors to Consider for Formulating a Successful Legacy App Modernization Strategy

Modernizing a legacy application can be a daunting task for any business. But with the right strategy in place, it can lead to improved efficiency and a more streamlined system.

In this article, we will explore essential factors for a successful modernization effort, improving overall productivity and performance.

1. Understand Your Goals

Determine the key objectives for modernizing your legacy applications

To ensure success, IT team and business stakeholders must team up to craft modernization plans that help the organization achieve its goals.

For your modernization project to be successful, it’s important that you have a clear idea of what the end-result should look like. This includes understanding all technical needs, performance expectations and ultimately how this will help with meeting business objectives.

This puts everyone on the same page regarding goals so they can figure out what kind of resources are needed and where funds should be allocated to realize these objectives.

Once modernization objectives are identified and documented, resources like personnel and tools can be assigned accordingly. By doing this, organizations will have the best chance of meeting their strategic goals in a timely fashion, considering realistic delivery timelines too.

2. Assess your Legacy Systems

Identify which systems are obsolete and needs to be replaced

A legacy app is a valuable asset regardless of age, so it’s essential to examine the strengths and weakness of each component before launching a modernization effort.

Application modernization assessment and analysis of the legacy system can be the difference between a successful legacy application modernization strategy and one that falls short.

To determine software modernization strategy that best meets business requirements, an extensive assessment should be conducted on the three major elements that make up the system:

1. Data
2. Business Logic
3. UI

Through careful inspection, you can discover which areas of the application are functioning optimally and which components may be due for an upgrade.

Additionally, mapping how these three elements interact with each other allows for clear insight into the application and its expectations for future growth.

The image below outlines the questions that can help you evaluate your legacy IT systems from different perspectives:

Efficiency

1. How efficient is your current legacy system in achieving your organization’s goals?
2. How much value does it provide?
3. Is it possible to upgrade software/hardware so that it can add more value?
4. If so, what kind of improvements will help maintain its full value in the long term?

Cost

1. How much does it cost to operate the existing legacy system? [Including manual labor costs]
2. How prone is the legacy system to breakdowns?
3. If a system outage were to occur, what would be the cost for the business?

Security

1. How proactive is the legacy system in combatting new and emerging cyber-attacks?
2. Does the legacy system have modern permission standards in place for access controls?
3. Who has the access to modify every aspect of the system?

Compliance

1. Is the legacy system compliant with the latest local, national, and global regulations?
2. Does the legacy system consistently adhere to safety, environmental and security regulations?
3. If not, which components of the legacy system need to be updated to comply with all relevant standards?

Consider the revolutionary approach if: The existing system is vulnerable, costly to maintain and doesn’t meet current standards.

Consider the evolutionary approach if: The legacy system needs an upgrade, but is compliant with current standards and is affordable to maintain.

3. Choose a Technology Stack

Select the appropriate technology stack for modernization efforts

When selecting the appropriate technology stack for legacy application modernization efforts, it is important to identify a balance of cost, complexity, and access.

Running applications in legacy environments can be costly and complex from a maintenance perspective. At the same time, total modernization of legacy applications often places strain on budgets and resources.

Finding a suitable balance between these two paths is key to forming a legacy modernization strategy that meets the unique needs and goals of a business.

Here are some of the key steps to select an up-to-date technology stack:

1. Evaluating system requirements
2. Developing an internal cloud infrastructure
3. Conductive quantitative analysis
4. Evaluating migration options

Additionally, assessing the cost implications and available support staff for necessary maintenance and upkeep is essential for long-term success in modernizing legacy applications.

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4. Make a Business Case

Quantify the cost-savings and other benefits of modernizing legacy applications

Any complex venture like this one needs a well-thought-out business case to back it up.

The application modernization process begins by assessing existing applications and interdependent systems before prioritizing them based on cost/benefit analysis as well as potential risks involved.

For most companies, the business case centers on combination of the following drivers:

Business Case Driver #1: Embrace Data-Driven Approach

Unlocking the value of data in legacy applications to tap into realms of growth. Despite being integral to the everyday functioning of companies, traditional business applications can often be a hindrance in achieving digital transformation.

Aging mainframes, legacy programming languages like COBOL and FORTRAN, outdated databases – all of these are impediments that stand between progress as they lack the modern flexibility needed for integration with new applications and implementing cloud modernization strategy.

When weighing up the pros and cons of legacy application modernization, focus on how it will propel your business forward to success.

Evaluate this decision by considering aspects such as:

• Customer satisfaction levels
• Lower maintenance costs
• Increased agility
• Greater Scalability

Business Case Driver #2: Strengthen Security

Legacy applications and platforms can lead to significant security vulnerabilities due to inadequate protection, so businesses must consider the associated costs of being exposed before deciding whether or not to continue using outdated applications.

Moving on from legacy systems not only meets corporate objectives but also keeps organizations secure from potential attackers.

When companies decide it is time for an upgrade, they should consider that keeping up-to-date versions of software has its many benefits; such as access to new features, improvements in performance and most importantly receiving regular security updates.

Business Case Driver #3 – Regulatory Compliance

Staying on top of data privacy regulations is critical, but it’s challenging when dealing with legacy applications and systems.

You must ensure compliance for requirements like GDPR, CCPA and HIPAA even if the system was created before them.

If you’re not aware of the sensitive data your organization is storing and where it’s located, you could be putting yourself at risk – both financially and legally.

Not only may a breach incur substantial monetary penalties but even an audit can leave you with hefty fines if compliance standards aren’t met.

Business Case Driver #4: Safeguard Your Brand Reputation

Ensuring compliance is not only critical for your financial security, but protecting your brand reputation is equally important.

5. Review Migration Options

Analyze different options for migrating from legacy systems to modern platforms

Modernizing legacy systems means moving from outdated technologies to modern platforms that will last for many years to come.

This can include expanding existing applications, refactoring code or introducing new integrations with current technologies.

With careful consideration and analysis of each option’s feasibility, cost, resources needed, and timeline an organization can make an informed decision and ensure a successful migration that meets their business goals.

6. Outline the Modernization Plan

Consider the scope of required changes to ensure that any transition is smooth and successful

The modernization plan should include the components to be upgraded, and the sequence and timeline of modernization stages.

Having clear application modernization steps mapped out and documented ensures that legacy applications can be updated without disruption to existing systems or processes.

With an effective legacy application modernization plan, businesses can confidently adapt legacy technology to ensure their operations remain secure, efficient and compliant with industry standards.

7. Select the Most Suitable Modernization Approach

Find an optimal approach that complements your modernization needs and unlock sustainable value for your app.

A successful legacy application modernization project requires a strategic approach. And the best approach aligns with your application’s current state, business goals, and your resource constraints. Here’s a quick breakdown of different approaches to filter the best-fit for your application:

1. Rehost: It is a good option for applications that are business-critical but too expensive to maintain on-premises. This approach involves moving the application to a new environment (cloud, virtual) with minimal code/functionality changes.

2. Refactor: This approach focuses on improving the application's codebase for better performance and maintainability. You can do it by implementing microservices, clustering and data portioning, optimizing heavy business logics, and moving some data to NoSQL databases. However, it is suitable if your application has a solid foundation but needs modernization to keep up with evolving market/tech trends.

3. Re-architect: It involves a more significant overhaul of the application's architecture to address, agility, scalability, security, and performance limitations. This is ideal for applications that need comprehensive modernization to stay competitive.

4. Rebuild: Build an individual or various components of application from the ground up with future agility in mind or fulfil operational requirements without losing the original scope and specifications of the application.

5. Replace: Replacing the legacy application with a modern alternative might be the best solution if the application is functionally obsolete or no longer aligned with your business needs.

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8. Consider Support Resources

Investigate the necessary resources to keep existing systems running while transitioning

Aligning financial, human and technological resources is essential in order to ensure that the legacy system is running smoothly while transitioning.

It is also crucial to have an adequate support network to address potential challenges during this process.

Taking a comprehensive approach to legacy app modernization that takes into account support resources can result in quicker time-to-value, increased efficiency and improved performance.

9. Select the Right Modernization Partner

Evaluate how their solutions and team will help make your job easier

Legacy app modernization is rapidly increasing in response to the ever-evolving and speed-first marketplace. Even reports revealed that 90% of companies are turning to digital transformation – emphasizing that this shift carries greater importance than ever.

Working with the right IT modernization software company can make a big difference for organizations looking for legacy system modernization strategies.

It’s important that any vendor or partner selected has extensive expertise in application modernization strategies and tactics. They should have a successful track record of helping other enterprises transition their legacy IT infrastructure from outdated software and hardware onto cutting edge platforms.

This includes migrating data while preserving its integrity as well as understanding how to design apps with scalability, speed and security in mind.

A capable service provider should also be able to diagnose legacy app problems, create a mainframe modernization strategy, improve customer service and expand reach.

Taking time to interview potential legacy application modernization partners and do due diligence on their portfolio of past projects can save time and money by helping you select an experienced provider with success in legacy system transformation projects that fit your business needs.

Ready to Modernize Your Legacy Application to Make the Most of Business Opportunities?When legacy app modernization is undertaken aiming to achieve specific business goals, a well-formulated strategy can make a huge difference.A legacy app modernization strategy that looks beyond addressing immediate challenges like software modernization traps and achieving short-term results as an investment in the future.Such a strategy can facilitate delivery of flexible, scalable, resilient and responsive applications. Furthermore, it helps you create application that’s agile enough to integrate with multiple business models, utilizing modular architecture with modern technologies.Ultimately, achieving successful application modernization requires all the right pieces to come together – that’s why it’s wise to partner with a top-rated application modernization company to give your mission-critical application a makeover it deserves!So, what are you waiting for? Feel free to contact us and discuss your project requirements.