Application modernization: impact, implications, approaches and techniques

Application modernization is the process of updating and improving existing software applications, to adapt them to the most current technologies, architectures, languages and frameworks.

The goal is to achieve an up-to-date software approach. 

This process is crucial for Maintaining application relevance and efficiency in a constantly changing technological environment, such as the current one. And to allow integrations with new tools, technologies and solutions. 

In this article we analyze why this is a necessary process due to the rapid evolution of technology, changes in business needs and user expectations. 

We also share current indicators of the application modernization market and its main approaches, challenges and risks. 

In addition, we identify the aspects to consider and the most commonly used techniques, and consider the relationship between these processes, the DevOps methodology and migration to microservices.

What are the reasons behind modernizing applications?

Among the factors driving the growth of application modernization, a Global Market Insights report identifies the increased need for cost savings and the demand for reduced code complexity. 

It also focuses on the need to acquire greater speed to adapt to the market and the speed that is being experienced in the development of technology. In addition, it highlights the decisive influence that it has on the compliance with current legislation.

From Markets and Markets, for its part, they focus on the Flexibility and scalability that cloud computing provides. In addition to the ongoing need for reduce risk, improve business efficiency and provide transparency in organizations.

In the studio State of Application Modernization Report 2024 of Konveyor, it is noted that The main drivers of application modernization are security, reliability and scalability. 

According to this research, more than 70% of IT decision makers evaluate the success of these projects based on the results in these three areas. 98% of them have already experienced benefits in at least one critical area: security (58%), reliability (52%) and scalability (53%). 

Other reasons organizations decide to modernize their applications include:

• performance improvement, 
• greater agility, 
• enhance the user experience, 
• optimize advanced capabilities for data collection, storage and analysis.

What is the current application modernization market?

The Global Market Insights research we mentioned earlier revealed that Application modernization market expected to reach $65 billion by 2032. 

This projection assumes a compound annual rate of +10% for the period 2023–2032.

In parallel, the MarketsandMarkets study predicts that the application modernization market will reach $32.8 billion in 2027, with a compound annual rate of +16.7%.

In both cases, and beyond the differences in the forecasts linked to the evolutionary percentage, The coincidence is placed in a market that is in full expansion.

For its part, in the report How to Choose the Right Approach for Application Modernization and Cloud Migration, Gartner reveals that in its 2023 'CIO and Technology Executive Survey', 46% of organizations said they will increase their spending on application modernization, stating that this is one of the four technological areas with the highest expenditure.

However, the consultancy warns that without a clear understanding of the root cause of the problem and the effect of different modernization approaches, software engineering leaders may select an ineffective approach that wastes time and effort, negatively impacting business results.

Among the main obstacles, Global Market Insights highlights the lack of talent with the right skills and knowledge.

Key Approaches to Application Modernization

The report of Conveyor warns that there is no dominant approach. In this regard, they argue that Modernization strategies are diverse and depend on the applications being modernized and the sophistication of the organization, among other factors.

Similarly, he believes that application modernization is not a one-time project, but rather There is a clear incremental path to redesigned applications.

Among the variety of approaches that can be considered within the framework of an application modernization project are the following:

• Rehosting (Lift and Shift): This involves moving applications to a more modern infrastructure, without changing their current code or operation. This seeks to improve scalability and availability, and even reduce maintenance costs.
• Refactoring: Restructures the application code to improve its design, without changing its functionality. It may include performance optimization, improving code readability, removing redundancies, and self-documenting code.
• Re Architecting: It includes the possibility of a significant change in the application architecture and code, to take advantage of new technologies and architectural patterns. For example, microservices or serverless architectures. 
• Rebuilding: Aims at rewriting the application from scratch using modern technologies and approaches. Although a more radical approach, it may be necessary when the existing application cannot be easily adapted to modern requirements.
• Replacing: It seeks to replace the existing application with a new one, often a commercial solution or a SaaS (Software as a Service) application, that provides the necessary functionality.

7 implications of application modernization

Among the implications of application modernization we can mention the following:

• Improving efficiency and performanceModernized applications are typically faster, more efficient, and more scalable, improving user experience and reducing operational costs.
• Enhanced securityModern software development technologies and practices include enhanced security measures. This helps protect applications from vulnerabilities and attacks.
• Agility and flexibilityModernization allows companies to adapt more quickly to market changes and new opportunities, which leads to improved responsiveness and innovation capacity.
• Cost reduction: By migrating to more efficient infrastructures, such as the cloud and by eliminating the need to maintain outdated hardware and software, businesses can reduce their operating costs.
• Maintenance improvementModernized code is often easier to maintain and update, reducing the time and effort required to implement new features and fix bugs.
• Compatibility and integrationModernized applications are more compatible with other modern tools and technologies, making it easier to integrate with other systems and services.
• Improved user experience: They can offer more modern and functional user interfaces, and improve user satisfaction and engagement.

What are the challenges of application modernization?

Application modernization is an essential strategic and technical effort to maintain the competitiveness and efficiency of organizations in today's technological ecosystem.

Some of the most significant challenges they face are: 

• Cost and resourcesModernization can be expensive and require a significant investment in time and resources.
• Technical complexity: The process can be technically complex, especially for large or older applications with legacy code that is difficult to modify.
• Risk of interruptions: Changing critical applications can carry risks of service interruptions and data loss if not handled properly.
• Training and adaptation: Development and operations teams may need training for adapt to new technologies and approaches.

What are the risks of not modernizing legacy applications?

Failure to modernize legacy applications involves several risks, primarily in terms of security and costs. 

Older applications often have vulnerabilities that can be exploited by cybercriminals, exposing businesses to attacks that result in financial loss, data theft and reputational damage. 

In addition, these applications may not be complying with the safety regulations required by current regulations, and consequently be susceptible to fines and legal sanctions. 

Legacy application maintenance costs also tend to be high., due to the difficulty of finding personnel trained in certain technologies, and the need to perform frequent updates to keep them operational.

Another important risk is the loss of competitiveness and business agilityLegacy applications may not be compatible with new technologies and platforms, limiting the company's ability to innovate and respond quickly to changes in the market. 

This can result in reduced operational efficiency and inferior user experience, with a negative impact on customer satisfaction and employee productivity. 

Furthermore, the lack of modern data analytics capabilities prevents informed decision-making and hinders strategic growth and adaptation. 

Failing to modernize legacy applications can leave businesses vulnerable, inefficient and behind against the competition.

What aspects should be considered when modernizing applications?

When modernizing applications, it is crucial to consider several aspects to ensure a successful transition and maximize benefits. 

1. Evaluation and planning. In this phase, it is essential to conduct a detailed inventory of all legacy applications to assess their current status, functionality and relevance to the business. 

Likewise, it is necessary Clearly define modernization objectives, which must be aligned with the company's strategic goals. 

In addition, it is necessary Evaluate the costs involved in the process and the expected benefits in performance, efficiency and safety.

2. Selection of technology and suppliers. One of the key instances in application modernization resides in Research and select the most suitable technologies and suppliers, that meet the company's requirements and are compatible with existing systems and processes. 

3. Architecture and design. Consider transitioning to a microservices architecture, which can Improve application scalability, flexibility and maintainability, is a significant decision. 

It is also important to focus on a user-centered design to improve the end user experience.

4. Security. Ensure that modernized applications comply with relevant safety regulations and standards, is decisive. 

As well as implementing security best practices to protect sensitive data during and after modernization.

5. Data migration. It involves planning data migration to ensure that they are transferred securely and accurately, without loss or corruption. 

It also includes maintaining synchronization between old and new systems during the transition to avoid business interruptions.

6. Development and testing. Use agile methodologies to manage the modernization project, which facilitate the adaptation and rapid response to changes and challenges, is an essential aspect in application modernization. 

It is also to do so exhaustive testing to ensure that new applications function correctly and meet established requirements.

7. Change management. The cultural transformation of teams is essential for the success of a project of these characteristics because:

• Provides the necessary training to employees so that they become familiar with new applications and technologies.
• Maintains clear and constant communication with all stakeholders to manage expectations and resolve concerns.

8. Maintenance. The key is to establish a ongoing support plan for modernized applications, so that any problems that arise can be resolved quickly. 

In parallel, regular updates and upgrades must be planned to keep applications up to date with the latest technologies and best practices.

9. Monitoring. Incorporate tools for evaluate performance of modernized applications and detect any problems preventively and proactively, makes a difference. 

In addition, users should be asked for feedback to identify areas for improvement and make adjustments if necessary.

Techniques to implement in application modernization processes

Application modernization is a complex process that can benefit from a variety of techniques, related to the approaches discussed previously. 

Among the most recommended are:

Refactoring: aims to improve existing code without changing its external functionality, resulting in improved code readability, maintainability, and performance.

Replatforming: proposes migrating the application to a new platform without making significant changes to the code. By taking advantage of new technologies and platforms, it aims to improve scalability and efficiency.

Reengineering: This involves the review and redesign of the application with the aim of improving its architecture and functionalities. The benefits that this can bring are the optimization of the application structure and its capacity to adapt to future needs.

Encapsulation: Exposes the functionality of legacy applications through APIs or services, facilitating integration with new applications and technologies, without modifying the original system.

Decomposition into microservicesThe goal is to break a monolithic application into smaller, independent services, improving scalability, flexibility, and maintainability.

Test automation: This includes the implementation of automated tests to ensure that the modernized application is working correctly, thereby increasing the efficiency of the testing process and reducing the risk of errors.

Containerization: aims to use containers (such as Docker) to package applications and their dependencies, ensuring consistency across different environments and facilitating deployment and scaling.

DevOps Adoption: consists of integrating development and operations practices to improve collaboration and efficiency. The proposed advantages are accelerating the development cycle, improving software quality and reducing delivery times.

Low-code/no-code platforms: They allow you to create applications with little or no code, speeding up development and allowing non-technical users to participate in their development.

Event-oriented architecture: design applications that respond to events rather than following a predefined control flow, to improve responsiveness and scalability.

Artificial intelligence and machine learning: integrating AI and ML capabilities to improve functionality, predictability and automated decision making.

Automating infrastructure configuration and deployment: to improve efficiency, reduce errors and facilitate the management of complex environments.

Relationship between application modernization and DevOps methodology

Application modernization and DevOps methodology They are closely related, as both seek to improve the efficiency, quality and agility of software development and maintenance. 

Application modernization involves Update and transform legacy applications to take advantage of modern technologies and practices, such as microservices, containers, and cloud architectures. 

DevOps, for its part, is a methodology that integrates development and operations teams to improve collaboration and communication, with the aim of shorten the software development life cycle and increase its quality. 

This is achieved by automating key processes such as continuous integration (CI), continuous delivery (CD), and infrastructure as code (IaC). 

It also emphasizes continuous monitoring and feedback, allowing for rapid response to problems and constant improvement of the software. 

Together, these practices allow Deliver updates and new features faster and more efficiently, with a more robust and reliable final product.

By combining application modernization with DevOps, organizations can not only upgrade their systems to be more flexible and scalable, but also implement more agile and efficient development processes, achieving faster and higher-quality delivery cycles.

Modernizing applications, migrating to microservices

The microservices are a software architecture that breaks down a large, monolithic application into smaller, independent and specific components. 

Each one is responsible for a particular functionality that runs autonomously, communicating with other microservices through well-defined interfaces, such as RESTful API. 

This architecture allows each microservice to be developed, deployed and scaled independently, improving flexibility, scalability and the ability to respond quickly to changes and market demands. 

In addition, it facilitates the use of different technologies and programming languages according to the specific needs of each service.

Modernization often involves migrating to a microservices architecture and using containers. 

DevOps facilitates this transition by automating container deployment and service orchestration, ensuring that microservices are deployed, scaled, and managed effectively.

Migrating to a microservices architecture during application modernization not only improves technical and operational efficiency, but also enables businesses to be more agile, innovative and resilient. 

This migration facilitates the integration of new technologies and practices, optimizes the use of resources and ensures better alignment with business and market demands.

Conclusion

Application modernization is crucial in a context of accelerating business processes. digital transformation, as it enables organizations to update their legacy systems to take advantage of modern technologies and practices. 

This process not only improves application efficiency, scalability and security, but also facilitates a more agile response to changing market demands and customer expectations. 

By modernizing their applications, businesses can integrate new functionality faster, reduce operational costs, and stay competitive in an ever-evolving digital environment by ensuring their systems are flexible and future-proof.Learn more How we help organizations achieve the agility they need to accelerate the development of new products and modernize their applications in use.