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Benefits of Application Modernization
Benefits of Application Modernization

November 21, 2022

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The use of application modernization services is already high and it is expected to grow rapidly in the next 5 years. More than 80% of companies are showing interest in application modernization as they have realized that modernization is critical for their future growth.

Also, it would not be an overstatement if we say that the application modernization market has increased due to the COVID outbreak and its effects on work culture.

The Application Modernization Services Market is projected to grow at a CAGR of 16.8% and will reach USD 24.8 billion by 2030.

Constant yet needful changes in technology are being one among many challenges that most IT organizations face. To counter this, companies look forward to modernizing their outdated application or old computing software. Several benefits can be reaped by application modernization and we are here to discuss them. But before we get into the benefits in detail, let’s quickly check what application modernization means and why it is necessary.

What is Application Modernization?

Application modernization is nothing but the process of updating and enhancing an old software or application. This helps businesses and IT environments to run smoothly along with the ever-changing technologies and computing approaches. During the modernization practice, updates are brought to the frameworks, and infrastructure platforms and newer languages are also included.

Legacy modernization and legacy application modernization are the other terms used instead of application modernization in the new age IT circle.

Simply, the lifetime of a legacy system is extended by modernizing and making it capable of the new digital arena. By modernizing legacy applications you can easily implement new technologies like Cloud, AI, and IoT into the setup. However, without modernization, it would be a tedious task to adapt to modern tech needs that lead to overall business growth.

Why do you need Application Modernization?

Though legacy systems or old applications are good at what they do, they might not be very friendly at welcoming new technologies for changing needs. It is important for a business to adopt new-age technology and modern ideas to sustain and grow.

By practicing application modernization, companies are enabling flexibility and agility in their business. This also paves way for meeting future business requirements and increasing growth rate.

Modernizing is a great solution for businesses to engage their existing customers and rope in new customers. It will add immense value to the old applications and make them better for modern needs and future goals. Both customers and employees benefit from application modernization as it brings great outcomes from all angles.

However, businesses that resist or refrain from legacy system evaluation and rebuilding old applications will face the following challenges.

  • Increase in application maintenance and running costs
  • Fall behind the needs of the customer
  • Incapable of integrating new technology
  • Decrease in efficiency
  • Sketching future plans become tougher

Said that, let’s find out the benefits of application modernization now.

Application Modernization Benefits: 

1. Enhanced Security
 

There is a rapid increase in cyber threats nowadays and it is difficult to monitor and manage without application modernization. A company’s data security is one of the important things to regularly look after for customer retention. By modernizing your application, you can not only secure important data at a very low cost but also save time.

The top-quality security feature that comes with application modernization will reduce the vulnerability to cyber threats and help you stay ahead of the security standards. This is one of the major positives that you will miss if you stick with legacy applications.

2. Cloud Benefits
 

When modernizing your legacy applications into cloud-native applications, there are many cloud benefits that come along with it. Cloud implementation lets you provision and deploy a server within a few minutes and cuts IT costs. High scalability and elasticity is another big benefit when it comes to cloud-native applications.

Other benefits include reliability, business continuity, performance improvements, and better security.

3. Customer Satisfaction
 

Customer experience is the key when it comes to developing a business that offers services and products. Hence, it is important to keep up the satisfaction of customers who expect faster and more efficient support. While legacy applications are bad at this, the modernized cloud-based application can perform better to satisfy customers.

Modernized applications’ advanced user interface with cutting-edge technologies will keep the customers engaged and looking for further growth.

4. Improved Employee Productivity
 

Modernizing legacy applications will not only retain valuable customers but also increase the productivity of the employees who work for them. Up-to-date software and technology will excite developers/engineers and encourage them to be more interested in delivering better.

An increase in the productivity of employees directly improves the growth of a company. In simple terms, modernization cancels out the repetitive and frustrating things with updated software and this positively changes the employees’ approach toward work. 

5. Complements Business Expansion
 

Application modernization is a great way to expand a business and adds new revenue streams. With flexible and modern features, businesses can offer new services to their customers and bring new profits.

Expectations are high among customers and this makes adding new services, features, and functions important for all companies to sustain. With the help of application modernization, introducing new services and opening new doors become easier and more comfortable.

On the whole, legacy modernization or application modernization is becoming a compulsory practice for all businesses to implement for a bright future. There are several other benefits, other than the ones mentioned above, that come along with modernization. So having a legacy application clearly leads to more trouble and modernizing them is the only solution when your intention is to grow fast and efficiently.


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