Run, transform and grow through application modernization

  • March 25, 2024

Should you run your business with legacy applications and processes, or transform to unleash new growth potential? For forward-looking enterprises, the choice is clear.

Too many organizations today are stuck in cruise control — maintaining outdated, monolithic applications that are a drag on innovation, agility and operational efficiency. I often see this embodied by the analogy of the anchor weighing down a cutting-edge rocket ship primed for launch. The rocket ship represents the enterprise's vision and ambitions, streamlined to achieve maximum speed and performance. But the heavy anchor of legacy tech anchors it to the ground, unable to break free from technical debt, sluggish development cycles and missed market opportunities.

It's time to cut that anchor loose and transform your applications into a powerful launch vehicle for growth. Are you worried about the cost of the launch? No need – there are ways to structure transformation through self-funded modernization initiatives. Let’s first understand why modernization needs to be prioritized:

Run efficiently, eliminate waste

Keeping those clunky legacy apps running is expensive. IDC finds that 68% of companies spend a staggering 50–75% of their application development budget on maintaining archaic systems, a massive waste actively detracting from innovation.

By transforming to modern approaches like containers, microservices and DevOps, you eliminate this tech debt holding you back. Automated processes and streamlined operations unlock huge cost savings that can be reinvested into creating cutting-edge customer experiences.

Transform for speed and superior experiences

Consumer expectations outpace dinosaur waterfall development practices and demand more user-focused and uber-like experiences. Delivering powerful user experiences demands constant iteration and getting high-quality products to market lightning fast.

This is where transformative methodologies like Agile, DevOps and site reliability engineering (SRE) are critical. Cross-functional teams can rapidly build, test, deploy and refine based on real user feedback, dramatically accelerating time to market. IDC found mature DevOps teams leverage SRE for over half their portfolio.

Grow your business through resilience and scalability

In turbulent economic headwinds, enterprises must be resilient, efficient and ready to scale rapidly to outpace disruptors. IDC research shows that nearly 50% of companies manage over 500 applications within five years, which is exponentially increasing in complexity.

Accompanied with a modernization trajectory, cloud is the ideal launchpad for managing this growth. By transforming to cloud-native architectures, businesses gain the agility, security and virtually unlimited scalability required to thrive. You can expand portfolios rapidly while leveraging advanced cloud capabilities like AI, data analytics and more.

Achieve transformative liftoff

While the benefits are compelling, true application modernization is a comprehensive transformation — simply rehosting legacy apps on the cloud won't cut it. From years of experience guiding enterprises through this journey, some key considerations emerge:

  • Craft a holistic, measurable modernization strategy locked onto business objectives
  • Take an iterative approach, using pilots to continuously refine processes
  • Bake in security from the start through DevSecOps best practices
  • Embed user-centric design thinking into every stage of development
  • Foster a culture of innovation through training, communities of practice and leadership
  • Secure funding by demonstrating incremental Return on Investments (ROI) and outcome-based progress

With the right approach and roadmap, applications go from being anchors dragging you down to powerful engines propelling you forward. You transform to grow revenue, market share and customer loyalty.

The time to start a liftoff is now. Hesitate, and you risk being disrupted by more agile, cloud-powered competitors. Prioritize strategic application modernization, and you'll be clearing the launchpad for transformational growth and market dominance.

Download the IDC research paper on Making the Transformation to Modern Application Delivery and Management sponsored by NTT DATA.

Then explore how NTT DATA's Digital Application Services can be your booster rocket for running efficient operations, transforming for speed and innovation and growing your business through resilient, cloud-enabled applications. Visit us to learn more on how we can transform your business through self-funded modernization efforts.

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Drew Gregory

Drew’s previous experiences across a spectrum of IT services including multiple levels in leadership have enabled him to holistically drive connectivity between business strategies and IT solutions. Today, he leads NTT DATA’s Digital Application Services (DAS) offering including application management, application modernization, quality engineering and assurance, performance monitoring and observability, security, and portfolio management.


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