Why App Modernization is the Strategic Priority for Leading Enterprises

15-Second Summary: This blog explores the growing urgency around app modernization. It explains what’s changed in the tech landscape over the past few years, how older apps are becoming liabilities, and why companies are taking action. It also highlights the next steps for businesses looking to assess and modernize their application stack.

The mindset around application modernization is shifting. Enterprises today are increasingly re-evaluating outdated apps, many of which have been quietly holding them back from agility and innovation. For C-suite executives, modernization has become a top boardroom priority.

The scale of this momentum is reflected in Red Hat’s 2024 findings - 95% of IT decision-makers across the world see app modernization as a crucial factor for business success and are well-prepared to execute with the right tools and support in place.

And it’s already underway. About 75% of enterprises have already carried out at least some form of modernization efforts. The pace is steady, in fact, faster than ever before, as organizations have plans to modernize 51% of their custom apps within the next 12 months and another 28% over the following year.

But why now? Why are we seeing this massive shift?

It’s because enterprises today can’t afford not to upgrade, even if it’s just a small improvement or a basic feature update. Modernization does not always mean replacing an entire product. It comes in many forms, sometimes, it’s as simple as refactoring code or improving performance in ways that weren’t possible a few months or years ago.

These incremental upgrades are mission-critical, and when done consistently, they add up to a stronger, more resilient technical foundation.

That's as simple as it can be. Stay with me as I will talk more about why enterprises are doubling down on application modernization, what’s driving the change, and how it’s helping them build for what’s next.

What Do Enterprises Gain from Application Modernization?

Modernizing applications is more than technology upgrades. There's not a single motivation behind it but a series of improvements and updates that, together, make your app relevant and responsive to whatever comes at it. If not, you need to modernize it with technologies built to support the respective demands.

In its recent publication , IBM Consulting explains exactly why it’s a strategic focus for forward-thinking enterprises. They have talked about enormous benefits like:

• 15 - 35% reduction in annual infrastructure costs,
• 10% improvement in app performance efficiency,
• 30 - 50% drop in app maintenance and operational costs
• 14% increase in yearly revenue
• 74% decreased cost on hardware, software, and staff

These numbers reflect the kind of impact that directly shapes bottom lines and business agility. We’re about to break down these benefits further to understand how modernization can fuel long-term success across different areas of an enterprise.

You can also go through our exclusive article on the latest app modernization statistics. It’s packed with fresh data that complements what these reports reveal.

Cost Reduction at Every Layer

Apps built with old technologies are expensive to maintain. You need constant patch jobs and manual fixes for it to support modern technical and UX standards. Modernizing it cuts this dead weight. You replace outdated processes with automated, custom-built solutions that don’t drain IT resources.

This shift impacts every layer of the business. Operational costs drop significantly because the manual work is minimized, and maintenance becomes simpler, more cost-effective. Since modernized apps with commonly available technologies, it also cuts down on the need for niche skill hiring.

The Business Outcome

• Technical debt elimination
• Cloud-driven resource elasticity
• No overcommitting to infrastructure

A Faster Build-to-Release Process

For enterprise app modernization, developers use the latest technologies, like microservices and AI capabilities, which are designed for speed and agility. As such, apps can support on-demand, real-time product iterations and deployments, a capability that traditional systems inherently lack.

The speed at which you can release new products and updates directly affects your ability to capture market share. An up-to-date app gives CEOs the power to capitalize on market trends and respond rapidly to customer needs.

What It Means for Your Enterprise

• Faster releases = faster revenue
• Agile responses to market changes
• First-mover advantage in new segments

App Performance Improvement

This is arguably the most direct, and most impactful, of all app modernization benefits. Performance and reliability are the enablers. It’s a ripple effect: better performance leads to streamlined operations, which lead to lower costs, which eventually lead to higher revenue.

Apps are built for the demands of a particular time. So, a system built some years ago often can’t handle the heavier workloads, larger user bases, or always-on expectations of today. Modernization fixes that. By optimizing codebases, redesigning architecture, or replacing old technology with new ones, your apps can meet modern performance standards with resilience. More importantly, they become adaptable to future changes.

A recent project we completed for a healthcare firm illustrates just how transformative legacy app modernization can be. It brought about a 65% increase in data processing and a 70% user load boost, which may sound modest but at scale, across multiple users and departments, it leads to major business gains.

What Leaders Care About

• Superior app performance means a stronger competitive advantage
• Faster response times lead to better user engagement and retention
• Improved security posture to handle threats more proactively

Revenue Growth with Better UX and Agility

Top-line growth hinges on a mix of delivering standout user experiences, responding to market changes faster than the competition, and scaling efficiently as demand grows. Business application modernization directly feeds this cycle.

Apps built with modern technology help with this by being faster, more reliable, and better equipped to offer intuitive, personalized user experiences. These factors directly impact retention. At the same time, businesses can launch features quicker, scale on demand, and address market shifts. All of this adds up to one thing - modernizing apps creates the kind of flexible, responsive environment where revenue can grow steadily.

Results You Can Expect

• Increased customer lifetime value (CLV)
• Higher user satisfaction and net promoter score (NPS)
• Easy-to-navigate designs reduce friction in the user journey

Higher Compliance and Security Posture

A lot of enterprise apps built using earlier development standards might not have caused problems yet, but they probably lack the latest security layers and regulatory standards.

For example, real-time threat detection, automated patching, or API-level security weren’t always integrated into apps developed a few years back. That puts your data, users, and compliance status at risk, even if it seems to be running just fine.

In August 2024, Avis Car Rental suffered a major API breach in which an outdated API end point was exploited by attackers. It exposed sensitive user data including personal IDs and driving license details and caused service disruptions across various regions.

Customers and partners care deeply about how you protect their data. The best way to ensure that protection is by keeping your app updated with the latest security standards. If you already have an app in place, now’s the time to modernize it with those updates in mind.

Business Impact

• Proactive threat detection instead of reactive firefighting
• Better data governance and audit readiness
• Zero fines and penalties from compliance gaps

Why is Now the Right Time to Modernize Apps?

So, recently Konveyor conducted a survey involving IT decision-makers, back-end developers, and software architects from the US, UK, and APAC. It found that security, reliability, and scalability are the top drivers behind their enterprises' decisions to modernize.

The results so far are promising. 58% of respondents are already seeing improvements in security, 52% in reliability, and 53% in scalability:

These findings are a clear indication that the benefits of modernizing are real and measurable, and now, more than ever, enterprises are seeing the value of acting sooner rather than later.

Besides, we see new technology released every other day that’s better, faster, and more efficient than the last. You will always have better solutions replacing the cutting-edge tools and platforms of today.

In the last 5-10 years, the gap between older systems and the latest technology has widened dramatically. The cost of not modernizing is simply too high. We’ve gone from on-premise to multi-cloud, from manual workflows to full-blown automation and AI integration. That shift has created a massive disparity between what outdated tech can do and what modern apps enable.

Bottom line, the longer you wait, the more it costs. I have pointed out some of the greatest reasons why you shouldn’t miss a single opportunity to modernize your app.

AI and automation are getting smarter

Nearly every business has adopted some form of automation, typically for basic functions like invoicing or inventory tracking. However, what many don't realize is that there are now advanced AI models that offer far more than just basic automation. And they keep getting better.

For example, Spotify. Apart from recommendations, they use AI to curate playlists in real time, based on individual listening habits. Old systems would simply be able to pull data but wouldn’t be able to react quickly or personally.

That’s why enterprises with outdated systems that rely on static, rule-based automation are missing out on generative AI and self-learning systems. The good news is you can always make the change through modernization.

Data privacy and security standards are in constant flux

One significant challenge for global enterprises is that security regulations are not static. Hackers keep looking for vulnerabilities or find new ways to breach, and then regulatory bodies set new standards to address them.

So, if your app isn't built with these evolving regulations in mind, it quickly becomes vulnerable to both security risks and non-compliance. Even if it’s only a few years old, without proper updates and an application modernization approach, it would fall short of current security expectations.

Outdated tech is a talent turnoff

The frameworks and tools developers use have a huge impact on how fast they can build, test, and ship apps. They now actively choose where they want to work based on the stack. If your tech is outdated, you're already limiting your access to great talent.

Most experienced devs don’t want to wrestle with archaic architecture, outdated languages, or brittle codebases that kill creativity and speed. They want tools that help them build better apps without burning out. Hence, upgrading your app opens the door to a larger and more capable talent pool. You'll be more likely to attract developers who are proficient in advanced technical resources,

The Business Risks of Not Modernizing

The risk of staying complacent is high with consequences like financial losses, security breaches, compliance failures, and a loss of competitive edge. The painful reality is that we’re seeing more and more companies learn this lesson the hard way. Public failures such as major data breaches and operational disruptions are causing millions in damage.

The risk is clear, and the warning signs are in front of us. Those who fail to modernize are at serious risk of being stagnant or worse, losing it all.

1. Inefficiency Drains Enterprise Resources, Quietly

First and foremost, legacy systems are notoriously inefficient. They require more resources and are far more prone to breakdowns. Companies continue pouring money into systems that are fundamentally outdated, rather than investing in new solutions that could be more cost-effective in the long run.

2. Companies Miss Potential Opportunities

Outdated apps are a financial burden. It will prevent your businesses from capitalizing on new growth opportunities. Companies in the retail industry that didn't switch to cloud-based point-of-sale (POS) systems struggled to adapt to changing consumer demands.

Target adopted POS systems early and so, was perfectly capable of quickly adapting to shifts like e-commerce and omnichannel retail.

3. Technical Debt Continues to Pile up

A little technical debt is fundamentally acceptable. In fact, most product teams knowingly take on some to roll out on-demand features or experiment with ideas.

However, the older an app gets, the more debt it accumulates, especially if it was not built or maintained with long-term scalability, security, and flexibility in mind. Every time you patch it instead of properly updating it, or you stack new code onto the outdated architecture, the app becomes harder to maintain, test, and scale.

That’s how not modernizing an old app slowly but surely builds technical debt that eats into productivity, stability, and of course, innovation.

4. Inability to Innovate Becomes a Growth Killer

When you’re sticking to older technology, you’re actively blocking your innovation pipeline. For example, an app built with Flutter’s 2022 version could not smoothly transition between multiple product images on a low-end Android device, but in 2025, that same app can provide fluid, high-quality animations even on the most affordable phones.

Flutter has upgraded its graphics rendering system , and by not modernizing your application tech stack, you fail to leverage these visual innovations.

What’s Next for the C-Suite - and What You Should Do

Most enterprises don’t like to think they’re behind. Their apps run, the business moves, tickets get resolved. Maybe you've even upgraded some tools or patched a few holes, so things feel modern enough.

But “modern enough" isn’t cutting it anymore. What you adopted in 2021 probably has a smarter, faster, more secure version today. And if your core business-critical apps were built before the AI-native shift, you're already trailing the curve.

Audit Your Stack Before You Make the Call

Take a short assessment tailored to current standards and get a clear snapshot of:

• Where your current tech stands against market-ready benchmarks
• Which systems are lagging in performance, scalability, and security
• Which parts of your portfolio are costing more to maintain than they return
• What not modernizing is costing you in real money, customer experience, and lost speed

Some apps may only need a lightweight refresh. Others might be better off retired.

You've Identified the Gap. Now What?

Now, how do you tackle this modernization strategy? There are two real options - either you build your own team or bring in expert help. Whichever you choose to do will depend on where your organization currently stands, the urgency of your needs, and the resources you have available.

1. Building Your Own Modernization Team

If you have a solid internal team that understands your business and technical landscape, this could be an ideal solution. They will need to upskill, or you might have to hire new experts with specialized skills in areas like AI.

2. Hiring External Expertise

One option is to build a modernization team from scratch. But if you lack the expertise or internal resources, then bring in external help - consultants and engineers who specialize in the application modernization process. They can hit the ground running and implement solutions far quicker than a fresh team.

Modernizing Your App Starts with Finding the Right Support

If you’ve acknowledged the gap and decided to move, the next question is – how do you find a reliable team to support your app modernization initiative? You need a partner who has done this before, across industries, across tech stacks, and across outcomes that actually move the needle. Let us take it from here.

Unlike many who approach modernization from a purely technical perspective, we bring a deep, personal understanding of the current and future viability of your product. We’re a team of developers, strategists, and business consultants who have lived through these transformations ourselves, working with clients who have felt the pain of holding onto outdated apps because of fears about costs, resources, or simply not knowing where to start.

And through this journey, we’ve developed a personal connection with our clients, getting as invested in their success as they are. Our success stories reflect how our approach to app modernization has delivered real, measurable impact.

Explore our skills in app modernization or reach out to our experts – we’ll bounce off a credible idea to revamp your app in the best possible way.