In today’s rapidly evolving digital landscape, businesses must continuously adapt to remain competitive. The fact is that outdated, monolithic applications are a serious threat to corporate growth in today’s digital age. Legacy applications are often unstable due to compatibility issues with current operating systems (OSes), browsers and IT infrastructures. That is why a key strategy that has emerged for sustained growth is application modernization.
What Is Application Modernization?
Application modernization or legacy modernsization is a pretty self explanatory term; it is the process of updating an organization’s existing apps. It involves transforming existing software applications to align with current business needs, technological advancements, and market trends.
The goal is to improve the efficiency, performance, security, and scalability of legacy applications. By updating and optimizing legacy applications, organizations can reduce maintenance costs, enhance their agility and user experience, and remain competitive in a rapidly evolving digital landscape. It ensures that the IT infrastructure remains robust, adaptable, and capable of supporting future growth and innovation.
Why Is Application Modernization Essential For Business Growth?
Core businesses tend to have large investments in their legacy softwares, which are often among the most important business applications. Companies are usually unwilling to drop such applications in mobile devices and start over; given the costs, production losses, and other issues. However, 88% of organizations are hindered by legacy systems.
It was found that 90% of businesses are unable to fully leverage digital technologies due to reliance on legacy systems. Additionally, operating and maintaining legacy systems costs a whopping $337 million annually! Application modernization can reduce this cost by 30-50%, by harnessing efficiency and innovation to adapt to market changes, and seizing new opportunities for growth.
Let’s look more closely at why app modernization is critical for business growth in the digital age:
Enhanced Efficiency and Business Agility
By leveraging the latest technologies, modernized applications streamline business processes and reduce manual intervention, leading to increased efficiency and productivity.
Application modernization equips businesses with the ability to pivot rapidly, respond to market fluctuations, and meet changing customer expectations with ease. A recent research by IDC indicates that organizations that successfully integrate legacy systems in their digital transformation initiatives witness a 25% increase in operational efficiency and see a 20% reduction in business downtime.
Improved Customer Experience
63% of consumers expect businesses to know their unique needs and expectations, while 76% of B2B buyers expect the same, highlighting the importance of modern, responsive applications.
Modernized apps often come with advanced features that enhance user experience, like faster load times, personalized content, and seamless navigation. With improved interfaces, functionality, and performance, they offer a significantly better user experience than legacy systems, leading to increased customer satisfaction and loyalty.
Cost Savings
Legacy systems often incur high maintenance costs owing to outdated hardware, software, and specialized support requirements. Modernizing applications can reduce these costs significantly by utilizing more cost-effective, scalable technologies like cloud-based service sand reducing the need for extensive IT support. According to a recent study by Gartner, companies that successfully transform their legacy systems can experience up to a 25% reduction in operational costs.
Scalability and Flexibility
Modern applications are designed with scalable architectures, enabling them to handle increased loads as the business grows. They are also more flexible, making it easier to integrate with other systems and adapt to changing business needs without major overhauls.
By streamlining operational processes, they make it simpler and faster to implement changes and add new functionalities. Modernized applications can easily integrate with other advanced technologies, such as AI, IoT, and big data analytics, which can provide deeper insights and drive innovation.
According to Flexera’s 2023 Tech Spend Report, 73% of businesses see scalability as a primary benefit of cloud-based, modernized applications.
Enhanced Security
While legacy systems can be vulnerable to security breaches, modern applications come with updated security features, including better data encryption and more robust authentication protocols.
In one study, the Ponemon Institute concluded that 67% of organizations experienced fewer security incidents after moving their legacy systems to the cloud. Cloud providers offer advanced security measures like encryption, multi-factor authentication, and continuous monitoring, which protects sensitive data and reduces the risk of cyberattacks.
Compliance standards are also easier to maintain in the cloud owing to built-in regulatory controls and audit trails. IBM’s Cost of a Data Breach Report 2023 indicates that companies using security AI and automation extensively save an average of USD 1.76 million compared to those without modernization!
Ultimately, investing in application modernization is a strategic imperative for any organization aiming for sustained growth and long-term success. Application modernization is a critical driver of business growth in today’s fast-paced and technology-driven world. By updating legacy systems to incorporate modern technologies, businesses can significantly enhance their performance, security, and agility.
This transformation not only reduces operational costs and technical debt but also positions companies to capitalize on new opportunities, comply with evolving regulations, and deliver superior customer experiences. Moreover, modernized applications attract top talent and foster innovation, ensuring that businesses remain competitive and resilient in an ever-changing market landscape. Write to hello@felixsolutions.ai for more information.