A successful business is defined by its ability to grow and evolve. As a business grows, its operational needs evolve along with it. Likewise, the business needs to keep pace with external factors, particularly with rapidly changing competition and technological innovation.
In the past, businesses have raced against each other investing in shiny new web interfaces and mobile apps in the bid to connect with clients and streamline business processes. However, as operations grow, a business might find itself stuck in outdated technology investments: legacy systems.
For many business owners, it’s a quandary between sticking with old technology and migrating to a completely new one. However, to sustain growth and success, companies need an IT system that is responsive to the market and their present needs.
A business requires applications that can serve its current business processes and capable of supporting its growing functional requirements. Without an IT backbone that can support its present and future requirements, the business operations might suffer.
It is not surprising why many businesses invest heavily in enhancing and upgrading their IT. According to application modernization experts from Tricension, one of the best ways to make a future-ready IT system is by implementing a legacy modernization program. Basically, this tech initiative is about recalibrating your existing legacy stacks so that they are agile, optimized, and data-driven.
There are many reasons why a business invests in this digital transformation journey. Let’s check them out below.
Compared to a full digital reinvention, modernizing legacy software systems offers a cost-effective way of upgrading an organization’s tech capabilities. Companies report up to a 5x significant reduction in cost with better ROI with modernization.
Migrating from local on-premise data centers to cloud-based solutions can cut down the costs associated with data center use. Add to that, businesses can easily scale down or manage cloud-based data solutions depending on their functional requirements.
But most importantly, maintaining legacy systems costs almost 60% of a company’s IT budget. This amount could very well be used in other worthwhile investments.
Improved team performance and productivity
Enhancing business productivity is an important benefit of application modernization. Cloud computing allows businesses to move their workforce to the cloud, thereby improving operational efficiency.
Different departments have unique IT needs. For instance, a particular department needs more storage space while other teams require faster processing. App modernization provides the flexibility to rationalize IT resources based on a department’s needs. The ability to judiciously apportion resources helps ensure cost-efficiency and guarantee optimum results.
Improved customer support and compliance with regulations
In a short span of time, regulatory bodies have enforced a number of rules on IT resources. These process regulations come with fines and penalties. Sadly, old legacy systems don’t conform to these new laws. Hence, many businesses spend millions of dollars due to non-compliance.
Aside from adhering to the standards, modernizing your system allows you to deliver top-notch services to your clients.
With the paper-based legacy application, managing and updating reports and logs can be a tremendous headache. This should not be the case with modernized systems as they can be accessed remotely, anytime.
Security is a topmost concern of many businesses – and it’s one of the benefits of application modernization. Outdated legacy applications are susceptible to malware attacks, data breaches, and other data security threats.
Usually, these systems are obsolete and lack support from their vendors. They have no match to cyber crooks that constantly updates its arsenal of malware. Application modernization ensures the security and protection of critical business processes and transactions.
When you embark on a complete tech overhaul, such as fully replacing apps, you can expect your businesses to encounter glitches. For sure, employees would need to be re-oriented to the new application. Your existing business process might even need to be adjusted to conform to the system.
In some organizations, a drastic change can even be met with resistance. Because of this potential disruption to revenue, some businesses opt to stick to their existing system.
Application modernization minimizes disruptions. Compared to replacing apps, modernizing the existing legacy system allows continuous uninterrupted operation. Functions run smoothly that employees and clients won’t even realize the changes.
Businesses need to stay abreast of the rapidly evolving market. Competitors spend huge investments to meet the ever-changing demand of customers. Flexibility is essential if you want to outlive competitors.
However, many organizations are tied to their legacy applications with limited capabilities. It can also hinder the business’s ability to migrate to a more digital model.
App modernization provides rapid response and flexibility. It allows the business to update their platform in response to the demands of the market.