As CIO.com aptly states, "Application modernization isn’t simply a trend; it’s the mandate for every IT organization." The benefits are compelling, and the statistics speak for themselves.
The strategic value of application modernization
Organizations that embark on the journey of application modernization stand to gain substantial benefits. According to IBM, the potential advantages include:
15–35% savings on infrastructure year-over-year: By upgrading legacy systems, businesses can significantly reduce their infrastructure costs.
30–50% lower application maintenance and running costs: Modern applications are easier and cheaper to maintain, freeing up resources for other strategic initiatives.
74% lower costs on hardware, software, and staff: The transition to modern technology platforms reduces the need for extensive hardware, software, and manpower, leading to substantial cost savings.
10% improvement in application operational efficiency: Streamlined and modernized applications perform better, leading to increased efficiency across the organization.
14% boost in annual revenue: More efficient operations and better customer experiences contribute directly to increased revenue.
The growing investment in modernization
Organizations are recognizing these benefits and are increasingly investing in modernization efforts. Gartner reports that:
46% of organizations are increasing their spend on application modernization.
47% are decreasing investments in legacy infrastructure and data center technologies, illustrating a clear shift towards modern technology platforms.
These statistics highlight the growing momentum behind application modernization and underscore the importance of staying ahead of the curve.
The role of IT and application portfolio management
A key aspect of successful application modernization is effective IT and application portfolio management. Understanding the state of your IT assets and strategically managing them is crucial. Here are some key areas to focus on:
Application portfolio management: This involves assessing your current applications and determining which ones need modernization.
IT portfolio management best practices: Implementing industry best practices ensures that your modernization efforts are efficient and effective.
IT portfolio management definition and framework: Having a clear framework and understanding of IT portfolio management helps in planning and executing modernization projects.
IT portfolio management process: A well-defined process ensures that all aspects of modernization are covered, from initial assessment to implementation.
IT portfolio management software and tools: Using the right software and tools can streamline the modernization process and provide valuable insights.
Application modernization is a crucial strategy for any organization looking to stay competitive in today's fast-paced technological landscape. By leveraging the benefits outlined above and implementing effective IT and application portfolio management practices, businesses can achieve significant cost savings, improved efficiency, and increased revenue.
Discover more in our ebook
To dive deeper into the strategies and best practices for accelerating business value through application modernization, download our comprehensive ebook, "Best Practices for Accelerating Business Value from Application Modernization."
This resource provides actionable insights and expert guidance on navigating the complexities of application modernization, ensuring your organization is well-prepared for future challenges and opportunities.