Cloud-Based Application Modernization: Critical for Enterprise Digital Transformation
The COVID-19 pandemic disrupted how enterprises operated, but not all were affected equally or in the same ways. Companies’ risks were often exacerbated by the legacy technology that once provided the foundation for their success. Modernizing core business processes and applications has been a priority for years, but such initiatives assume a far greater importance now.
Cloud technologies have emerged as a critical ally for enterprises striving to meet changing customer demands and to stay relevant in the market. Application migration and modernization in the cloud have proven that they can increase resiliency and agility to address changing business requirements.
Infosys Cloud Radar 2021 found that the highest financial performers were the companies that migrated at least 60% of their systems to the cloud and adopted more sophisticated applications. Only 17% of the respondents in our survey said they had reached that level, but 41% projected that their firms would cross that threshold by 2022.
Incumbent enterprises are now looking at cloud-led modernization as an important lever to compete effectively, stay relevant, and improve agility. The Forrester WaveTM: Application Modernization and Migration Services, Q3 2021 report explains that the application modernization and migration market continues to shift toward the use of cloud-native technologies and a lower emphasis on pure infrastructure-led lift-and-shift migration.
While necessary, the transformation of legacy applications is both difficult and time-consuming. For modernization programs to be successful, enterprises need to select the right modernization strategy based on their specific organization and business goals.
The market now is leaning toward a platform-led modernization approach. When well executed, this can make an enterprise more resilient, responsive, and relevant by:
- Building a future-proof architecture by transforming legacy systems through the use of cloud-native technologies.
- Adopting Agile methodologies, DevSecOps, low-code and no-code platforms, and platform-centric modernization.
- Using software asset optimization, open-source software, the cloud, and smart automation to reduce costs.
This approach allows enterprises to optimize cost, improve time to market, and enhance the end-user experience. Infosys has helped clients navigate these changes with our zero-disruption modernization approach and Infosys Live Enterprise Application Development Platform, part of Infosys Cobalt, to reimagine and modernize their legacy IT landscapes.
In The Forrester WaveTM: Application Modernization and Migration Services, Q3 2021 report, the research firm evaluated 14 providers across 26 criteria and grouped them into three high-level categories: current offering, strategy, and market presence. Infosys received the highest score possible in the service capabilities, execution road map, performance, and investments in training and skilling criteria. The report acknowledges Infosys’ Live Enterprise model, in which enterprises armed with knowledge and data-enabled insights can adapt rapidly to changing business conditions. The report also recognizes Infosys as a good fit for most modernization and migration opportunities, especially application reimplementation within an existing installed base and in the banking sector. The report further notes that Infosys boasts a broad range of assets for service delivery and vertical industry solutions relative to other providers.
Last year, Infosys was named a “Leader” in The Forrester WaveTM: Multicloud Managed Services Providers, Q4 2020, which we believe is a recognition of the strong performance of Infosys Cobalt. The report recognizes Infosys as a long-standing player in cloud management technology and a good fit for companies seeking particularly strong migration and modernization services to assist with a smooth and speedy transition.
Enterprises have known for years that they needed to reinvent and reimagine themselves to keep up with rapidly changing market conditions. The recent acceleration of those trends during the pandemic has proven that companies will struggle to keep up — let alone succeed — with the technology that helped them reach this point. Companies that continuously modernize their IT landscape via the cloud will make their enterprises more resilient. More than just a tech strategy, this shift will add valuable business capabilities that were not previously possible and allow companies to sense market changes and react in real time — and essentially become a live enterprise.