According to a report, business leaders face roadblocks in migrating legacy systems into the cloud with budget (36%), security (31%), complexity and time (28%), lack of expertise (27%), and problems integrating legacy systems (27%) being the topmost concerns. Modernizing legacy IT systems for every enterprise is essential, as it increases network security, adds new features, and, most importantly, boosts productivity.

For many CIOs, modernizing applications has become a priority lately. They are increasingly adopting application modernization trends to reduce their IT investment, speed up time-to-market and increase agility with minimum risk. As organizations look towards 2023 and beyond, they must consider key application modernization trends to ensure success and mitigate risks. Let's find out!

Why It's Important to Modernize Legacy Applications?

application modernization isn’t new, and organizations have been practicing it for decades. Businesses can use Application Modernization Services to refresh their software portfolio and reduce burdening costs. However, that requires a solid application modernization strategy and a roadmap. Once the right approach is followed, it can lower the resources needed to run an application and improve uptime and resiliency. Let's now understand the importance of application modernization with a use case.

Use Case for Application Modernization

The Home Depot has nearly 2,300 stores, making it the largest home improvement chain in the world. The business wanted to adapt to shifting market demands quickly. So, it decided to move its SAP applications to Google Cloud. The company now has the flexibility, scalability, and speed to handle significant revenue spikes while maintaining a high level of customer service.

Application Modernization Trends in 2023

1.Hyperautomation as the Technology Roadmap

Hyperautomation is perhaps the most talked about application modernization trend for 2023. According to a report, by 2024, 80% of organizations will utilize Hyperautomation as their technology roadmap. First coined by Gartner, Hyperautomation uses cutting-edge technologies such as Low-Code/No-Code Application Platforms, Robotic Process Automation (RPA), Virtual Assistants, and Artificial Intelligence (AI) to discover processes and automate them quickly, thus reducing operational costs by 30%.

2. Following a DevOps Approach

DevOpsis nowadays permeating numerous organizations to improve communication and collaboration between operations and development teams. According to Allied Market Research, the global DevOps market size is said to outreach $57.90 Billion by 2030, at a CAGR OF 24.2%. The mission of DevOps extends beyond developers to include IT operations teams, who identify bottlenecks, manage transitions, and monitor continuous communication. The other crucial aspect of DevOps is communication. Communication and frequent updates on the status of projects are essential to successful collaboration between teams. Going with the DevOps approach is one of the best decisions businesses can take as it will open doors to faster deployment and better product quality. The only catch here is to have experienced professionals onboard to implement it.

3.Adoption of Containers

Containers are a great way to modernize applications, and their adoption has soared in recent years. Red Hat's 2022 State of Enterprise Open Source Report found that two-thirds (68%) of IT leaders are using containers, which puts it on par with AI/ML and edge computing. Using containers, applications can be deployed quickly across multiple cloud platforms for both new and current applications. Containers, also known as a cloud-centric technique, can automate the deployment process, enabling developers to respond quickly to customer needs. They are best suited for many multi-cloud and hybrid environments and cloud infrastructures.

4.Cloud Native Development

Cloud-native applications allow companies to deliver responsive, flexible, innovative solutions that are persistently optimized and improved based on users' feedback. Just like other emerging trends, organizations are using cloud-native applications as armor to meet the steady pace of their business. According to IDC research, 90% of applications will be cloud-native by 2025, which supports Gartner's prediction that 85% of companies will adopt cloud-first practices by then. Watching how it will assist companies to operate with more significant innovation and flexibility will be interesting. 

5.The Use of COBOL Gaining Prominence

With companies heading rapidly towards digital transformation, COBOL modernization solutions are gaining traction. Nowadays, systems are automated, and the applications can be transferred to a platform of choice or any programming language. This modern reengineering solution can help reduce end-user limitations and reduces costs, risks, and possible failures in code rewrites. Since there is little disturbance because there are no freezes, rewrites, or stops to progress, this is augmenting the growth of the application modernization services market.

5Rs of Application Modernization



Once the opportunity to modernize legacy applications is discovered, look at 5 approaches to modernizing applications.

  1. Rehost – Deploying application components to other infrastructures (Virtual, Physical, or Cloud) without modifying their code.



  2. Refactor - Improving nonfunctional attributes by reorganizing and optimizing the existing code (though not its external behavior).



  3. Rearchitect - Materially altering the code to exploit new capabilities and move to new application architecture.



  4. Rebuild - Maintaining the scope and specifications of the application component by redesigning or rewriting it from scratch.



  5. Replace - Replacing the old application component with a new one while considering current demands and requirements.

Conclusion

The pace of change in the application modernization space is accelerating. These are the actual trends and could change how organizations consider development in the next decade. Many of these changes are already in effect and will only intensify over time. So what does this mean for businesses? Just picking up any of these application modernization trends won't work. Organizations must thoroughly assess their current state, such as determining their budget and project timeline and then select the appropriate strategy with matched technology to meet their business objectives. Look for a reliable partner that ensures your application modernization journey is thriving in 2023 and beyond.