What is Application Modernization? – Benefits, Challenges and Approaches

Updated 10 Jun 2024
Published 19 Dec 2023
Gaurav Sharma 1982 Views
What is Application Modernization Benefits, Challenges and Approaches

Do you have an app or software and want to modernize it? If yes, it’s the right time because almost all businesses leverage technology to offer the best service and customer experience. Application modernization Services can help you stay ahead of the curve.

Here is a blog post that provides you with all the essential details:

  • Application modernization
  • Legacy Systems
  • Why it is important
  • What are the steps involved?
  • Key technologies to consider
  • Challenges, Approaches, and more.

Before we begin this blog post, I would like to share some interesting statistics.

“As per a survey done by Solutions Insights, 87% of IT leaders admitted that application modernization significantly impacts an organization’s long-term growth.”

So, in 2023, where businesses face cut-throat competition, application modernization can help you gain advantages.

Let’s start with the definition.

Application Modernization: What is it?

As its name implies, updating outdated or legacy apps using the latest technology such as Cloud, Microservices, Data Lakes, Containers, Serverless, API, AI/ML, DevOps, and Purpose-built Database.

It is also known as legacy system modernization. The process includes modernizing application platform infrastructure, internal architecture, features, and more.

It works for monolithic apps (which handle multiple tasks) and on-premises apps (hosted on-site). The most suitable technology for application modernization is Cloud Technology.

One of the key benefits of application modernization is that it supports reforming an app from on-premises to the cloud for scalability and better performance.

Let’s make it simple with an example!

You will be surprised to know that, to date, the total amount of the HIPAA fine paid is $1,661,500, and it happened due to the negligence of HIPAA-compliant systems.

So, in terms of healthcare, if any brand uses a legacy system, it is better to modernize it as per HIPAA Compliance using new technology.

It is better to understand the legacy app or system than to understand the application modernization process. The next section will help you with it.

What is a Legacy System?

A legacy system can be an outdated application or computing system with hardware and software used since its launch.

Interestingly, these systems work continuously, even without updating, and work as per their critical functionality.

If you want to know, what are the criteria for identifying a legacy app or system?

These are:

  • These applications stop receiving the creators’ latest updates, support, and maintenance.
  • The systems are no longer available for purchase.
  • The systems or apps use old technologies.
  • On–premise software that does not support the organization’s software.
  • The software or system requires professionals with expertise in old technologies, such as COBOL.
  • Over-exposed to security vulnerabilities.
  • Failed to follow the latest rules of compliance.
  • Repairs take a lot of time, and the maintenance cost is higher than with the new systems.
  • Systems can’t be scalable in terms of features and functionalities.

Now, it’s clear what legacy systems are. Here, you might also be interested in knowing why modernizing legacy applications is necessary.

So, the next section of this blog will get you covered.

When is Application Modernization needed?

The core purpose of application modernization is to stay competitive in the market, remain productive, boost performance, and align with trends to cater to customers’ needs.

A point to be noted is that an application modernization strategy will play a crucial role. Here are some scenarios that show when you need application modernization.

1. If you are using a legacy app

Still, if you are using legacy apps or outdated software, it is time to go for application modernization. Because in this dynamic world where businesses are progressing fast with cutting-edge solutions, the whole thing revolves around scalability, flexibility, and productivity.

It will also help you adapt effectively to evolving business requirements.

2. If you want to improve the app’s functionality and features

It may happen that you are not using a legacy app, but you need to improve your existing app’s functionality more; then, legacy modernization will be perfect for it. You can migrate your app to the Cloud platform to increase the app’s functionality and competitiveness. Additionally, it will also help in adding security features.

3. If performance and scalability issues persist

Application modernization is necessary when you experience performance issues with your existing software, can’t add more users, and when it responds slowly. Software modernization services can help you increase performance, including eliminating challenges with scalability.

4. If security and compliance issues arise frequently

For every software in this world, security is a must, and it must follow compliance. If it fails to follow both, then the consequences can be worse.

App upgrade will help you enhance the data and users’ security and ensure compliance is followed appropriately.

5. If you need a cost-effective solution for your business

It is okay that you spent earlier on business applications with some technology. Still, if you need upgrading and want a cost-effective solution, then a better way is to migrate to open-source technology like Cloud. You will have unlimited support and no license renewal issues at an affordable cost.

6. If you need high productivity

Almost all legacy systems do not support task automation, but this does not happen with the latest systems based on modern technologies. So, you can boost productivity and focus on crucial tasks with application modernization.

7. If agility is required

Application modernization supports agility by making it easier to update and change applications. You can develop modern applications using high app development standards and technologies such as cloud-native technologies, which are designed to be scalable, flexible, and easy to manage. As a result, businesses can respond quickly to changes in the market or customer demand.

8. If maintenance challenges occur abruptly

If your team spends less time handling maintenance issues, technical faults, or issues with your existing system, they may arise unexpectedly. It is time to modernize your legacy application. It will save time, effort, and cost.

9. If your app fails to integrate

Suppose you need to integrate your app with APIs, tools, or services, but you must do it forcefully, or your app fails; then you need to upgrade it fast using the application modernization strategy. The next-generation architectures work smoothly for all types of integrations, as these are designed for them.

10. If you want to elevate the customer experience

If your customers need some features and functionalities in your app or are not satisfied with the app’s experience, then, without delay, you must upgrade your system. The legacy modernization will drive unique user experiences.

Some Myths Related to Application Modernization

Some myths related to application modernization need to be broken before you make a final decision for any app or system upgrade. So, let’s start bursting one by one.

#Myth-1

Application Modernizing Is a Costly Affair

What would you prefer- a system that eats your budget like a worm only for maintenance or a system built with modern open-source technology that is cost-effective and offers a life-long experience? Nobody would like to choose the first option.

The first myth busted here, and the fact is that app modernization is a costly affair once and unless you do not have tons of requirements.

Although budget management is challenging for businesses, investing in modernization will generate a high ROI.

#Myth-2

Only In-house Team is the Best for App Modernization

If it is true, every system, software, or app in this world would be updated, but it is not.

The second myth is busted here. It is okay to have an in-house team for app modernization, but would you like to continue with the team when there is no requirement for app developers?

Would you pay them without work? So, instead of this option, it would be fantastic to hire an offshore development team.

The key advantage of hiring a remote team is reduced time to launch the upgraded app and cost-effectiveness.

#Myth-3

App Modernization is Only Transforming UI

It is one of the biggest myths about app modernization that can be busted with one word: “NO.”

It is one of the parts of legacy modernization, as other components, such as app architecture, backend, and UX, are also being upgraded under it. The prime goal of app modernization is to create impact at all layers, from the interface to the code residing on the server.

#Myth-4

Application Modernization is One-Time Investment

Suppose you created the latest app, but could you guarantee it will remain the latest forever?

No one can guarantee it because technologies are changing constantly, so app modernization is a continuous process that requires timely assessment and evolution of the whole structure.

#Myth-5

Upgrading the App to the Cloud Ensure Security

Here are some names of the popular names Facebook, Alibaba, LinkedIn, and Marriott International, and surprise, all hacked once in life, even using a secure cloud. So, the fifth myth is busted here.

It is okay that Cloud is the major technology for application modernization, but it is only secure once and if you use extra security measures.

Certain tools can be added with the help of an experienced mobile app development company with a proven record in providing app modernization solutions.

App Modernizations and Its Benefits

App modernization offers multiple benefits, where key benefits are flexibility, scalability, and competitiveness. Another benefit is the multiple technologies available to make it happen, such as AI, Machine Learning, Blockchain, Cloud Computing, DevOps, and others.

So, let’s look at some key benefits of legacy modernization.

Benefits of App Modernization

Agility and Scalability

Application modernization empowers businesses to adapt to changes, scale-up business as needed, elevate the business, and address all the needs of customers.

Enhanced Customer Experience

People prefer to use updated apps, so modernization is better to enhance the customer experience. It will help you to offer out-of-the-box features, streamlined navigation, seamless execution, and more.

Improved Productivity

Application or legacy modernization not only helps the customers, but it also helps in improving the productivity of your workforce via automated workflows.

Cost-Effectiveness

Migrating to the cloud platform is beneficial as there is no need to arrange the resources; no separate server is required, hardware limitations are not there, and overhead cost is negligible.

Staying Relevant

Application modernization involves using trending technologies, so the app remains relevant as per the latest technology trends.

Adherence to Compliance

New technologies offer better solutions for adhering to compliance; that’s why an application modernization roadmap is necessary.

What are the Application Modernization Challenges?

Application modernization means updating legacy or old applications to make them more efficient, secure, and scalable. Although it is beneficial, there are also some challenges associated with it.

Here are some of the application modernization challenges that occur while modernizing legacy systems:

Challenges in Application Modernization

Cost

If the applications are complex or large, Application modernization can be expensive. Multiple expenses are associated with it, such as data migration costs, hiring of experts, management resources, tools, and more.

Impact on Business

Modernization sometimes impacts business operations, such as migration from one platform to another. Business activities go on hold.

Investment

Sometimes it is tough to invest in modernization, especially when the budget is low. Here, appropriate financial planning can help.

Incompatible Workforce

If your workforce has been using the legacy system for a long time, then there may be a chance that you need to train your workforce first to use the modern system.

Data Migration

Data migration is not an easy task; it requires time and expertise. If you have data in bulk, then it may take days, a month, or more.

What are the steps to prepare a perfect Application Modernization Roadmap?

A perfect roadmap can help you achieve the best results. So here are the steps to do it:

#1. Audit Your Existing System

It all starts with auditing the existing system or IT infrastructure. You need to audit architecture, source code, and UI/UX here.

#2. Migration Approach

The right approach can lead you to the desired results. So, as the second crucial step, you must choose the approach that suits your needs.

  • Big Bang

In simple terms, it is called the lift-and-shift approach, where the entire legacy system is migrated to the cloud in a single milestone. It requires less time and is suitable for small-size legacy systems.

  • Phased

When modernization happens at small milestones over a period, it is called phased migration, which happens in multiple phases. It requires more time and is suitable for large-sized systems.

#3. Team Formation

Application modernization requires a certain set of skills. It would help if you onboard experienced professionals to modernize your legacy system. It includes hiring project managers, software architects, developers, DevOps engineers, user experience designers, and quality assurance professionals.

#4. Financial Planning

Budgeting for application modernization is the most essential step. The right way is first to identify what budget you can spend on modernization and then break it what you can spend before migration, in between the process, and post-migration.

#5. Choose The Service

Cloud technology offers three types of services you can choose per your business modernization needs.

  • IaaS

It stands for infrastructure-as-a-service, which allows access to infrastructural resources such as storage, networks, servers, and processors on demand. You only need to pay for the infrastructure components that you will use.

  • PaaS

The full form of PaaS is Platform as a Service. It offers a complete development and deployment environment. Using PaaS, you can develop cloud-based apps to sophisticated enterprise applications.

  • SaaS

It is known as Software as a Service and offers solutions that you can use to purchase as you go. Its popular examples are Microsoft Dropbox and Google Workspace.

Once all is set, it is time to go for the modernization of enterprise software.

Technologies to Consider for Application Modernization

There are various technologies that you can consider for modernization. Here are some key technologies that help drive the best outcomes from app modernization:

Microservices

It is also known as microservice architecture, which structures an application as a collection of services. Its characteristics are independently deployable, loosely coupled, owned by a small team, and based on business capabilities.

Data Lakes

Data lakes stand for a centralized repository of the data and store data in native format. The best part is that data can be of any type, such as structured, semi-structured, or unstructured, and it can be from multiple streams like business applications, IoT devices, social media, or more.

It works perfectly when data can’t be stored in traditional data warehouses. Data lakes are most suitable for Big Data Analytics, SQL Queries, and Machine Learning.

Containers

It stands for software units or packages of software that are lightweight and executable. It combines all runtime elements to make the application run seamlessly.

The real-life examples are Gmail, YouTube, and Search, and everything runs in the containers. It allows developers to move quickly and deploy software efficiently.

Serverless

Serverless is one of the cloud computing approaches in which third-party cloud providers allocate machine resources. In simple words, it is a cloud-native development model that enables developers to build and run applications without managing a server. The cloud services provider will handle the server.

APIs

The full form of APIs is Application Programming Interface (APIs) which help organizations or businesses save money and time on application modernization.

It plays a fundamental role in the digital transformation process, or in-app upgrading, as outlined in our comprehensive digital transformation guide. It also improves communication between different layers of IT systems and services.

AI and ML

The core application of AI and ML is automation. From an application modernization perspective, it helps in executing complex analyses, processing data in the form of code with more than human accuracy, automating manual processes, and more.

With the help of third-party service providers, businesses or enterprises can incorporate AI and ML capabilities into their applications.

Purpose-built Databases

Purpose-built databases provide developers with the facility to store and query data in the same document model format as their applications.

There is no need to reach a relational database, and developers can choose a tailored database as per their needs.

Key Application Modernization Approaches

Almost all enterprises use sophisticated applications. So, to maintain the applications, a budget and team are required.

If it is a legacy system, it may require more budget and time; that is not the right scenario, so application modernization is the better way.

If you know the key approaches for legacy modernization, here are these:

Key Approaches for Application Modernization

  • Rehost

Rehost is also known as the Lift & Shift model, where app resources shift to a cloud database. While rehosting, the codebase remains the same, but existing infra migrates to cloud infrastructure IaaS along with cloud-based storage and network resources.

  • Refactor

You can also call it restructuring the code of an application to improve the operation without altering functionality. It includes improving the design, structure, and implementation of software without changing the existing code. Its advantages are improved code readability and reduced complexity.

  • Re-Architecting

This approach is for re-architecting the legacy monolithic application based on the microservices model using the latest DevOps practices.

It involves decomposing monolithic applications into a cluster of services that can be developed, deployed and maintained independently. It works on a divide-and-conquer approach.

  • Rebuild

It is somehow like re-architecting, but here instead of remodeling, things start from scratch. The application is being rewritten as a cloud-based app containing its original purpose. It helps elevate innovation and value addition and reduce the overall cost.

  • Replace

If your legacy system still has any functionality that is useful and is in active mode, then you can replace it with a cloud-based solution.

SaaS, aka Software as a Service, is most suitable for it. The best example is replacing purchased license software with a pay-as-you-go subscription.

How Arka Softwares can help in Application Modernization?

Arka Softwares offers app modernization services; we assist our clients in developing a virtualization strategy and migrating their systems and resources.

We have a team of professionals specializing in legacy modernization and app upgrades. They assist our clients at every step, i.e., from preparing a roadmap to deployment. We can tailor the app modernization solution to address all your needs with cost and time effectiveness.

application modernization services

Conclusion

Application Modernization offers multiple benefits, but these things depend on how you implement them. So, before making any decision, you need to think about a perfect roadmap.

It will lead you to the best outcomes. For better results, it would be nice to consult a trusted mobile app development company with a proven track record. Transforming a legacy app into a modern one is a difficult task that only experts can help you with.

If you have some questions, we would happily assist you with all your app modernization requirements.

Gaurav Sharma

Gourav Sharma is a Digital Marketing Strategist at Arka Softwares, a leading web development company. He has 2 years of experience in the Information Technology industry. He spends his time reading about new trends in Digital Marketing and the latest app development technologies.

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