Business and IT leaders understand the need to modernise applications. But identifying the right time, finding the right path and unlocking maximum value from the modernisation can be daunting.
The challenges related to app modernisation hinge on a straightforward challenge: mainframe computers and legacy code are firmly entrenched in many businesses. Many companies continue to rely on these outdated systems for tasks as diverse as payroll, operations, human resources and general data analytics. Adapting these applications to take advantage of highly agile cloud frameworks with advanced features can be remarkably difficult.
In many cases, it’s tempting to turn to a straightforward replatforming approach (a.k.a. “lift and shift”) to directly transfer software, settings and data from an older system to the cloud. This approach is attractive because it keeps essential apps running and potentially helps an organisation incur minimal disruption and keep upfront costs down. But they gain little from being in the cloud.
Then there are companies that attempt to make changes to applications to take advantage of cloud but fall short of their goals. Why? Business and IT groups may not always adequately scope out the value drivers, fully grasp the technical complexities or entirely comprehend the factors that drive change management. Lacking a complete inventory of code, dependencies, workloads and integrations, initiatives often fall short.
All of this points to an inconvenient truth: re-platforming alone can deliver limited value, and it can lock an organisation into a rigid framework that’s difficult to change. For example, while there are tools to make COBOL code run in the cloud, they may not take full advantage of leading-edge features, such as artificial intelligence (AI) tools. The technical knowledge and time required to connect such legacy code to modern features and application programming interfaces (APIs) can prove daunting.
The resulting problems can play out in unanticipated ways. For instance, as workers with mainframe and COBOL skills retire, an enterprise may find itself saddled with higher costs and technical debt. For instance, a large commercial bank discovered that even after migrating from a mainframe to the cloud, it encountered frustrating limitations. It took months to add new digital services. The reason? It hadn’t modernised systems during the migration. As a result, they were no more nimble than before. Had it been more strategic and taken a modernisation path, new releases could have been measured in days.
The lesson: a faster migration isn’t necessarily better — and short-term savings can result in long-term costs. Consider: another large company, after migrating to the cloud, discovered that it had inadvertently created a duplicate payroll system because it had neglected to update its API calls from the legacy system. The controls they had in place did not identify the issue because the monitoring processes were never updated.
Transferring a monolithic legacy app to the cloud isn’t the same as rewiring it to use highly agile and efficient cloud containers, microservices and serverless frameworks. Smaller, modular pieces of code can be assembled and reassembled to unleash powerful features and highly efficient automation.
For us, effective app modernisation revolves around three foundational concepts:
Think big, but start small. Balance possibility with practicality. There’s no “big bang,” and it doesn’t revolve around any specific cloud provider. Modernisation needs to float free of vendors and the whims and preferences of IT staff. It’s all about approaching app modernisation from a pragmatic framework that matches an organisation’s budget, capabilities and principles to an ideal cloud architecture.
Take things one step at a time. PwC identifies priorities and helps deliver a map for effective migration through a series of clearly defined steps and phases, with appropriate testing, validation and adjustments along the way. It determines the right choices and outcomes. Metrics and key performance indicators (KPIs) are baked into the migration and modernisation process. Each step supports the next. For example, an enterprise may identify skill gaps and address them by hiring or training staff before a new feature or service goes live.
Focus on incremental delivery and wins. All too often, application modernisation initiatives disappoint because the horizon for return on investment (ROI) extends 3 to 5 years out. With no obvious, early results — and no big wins for the foreseeable future — senior-level executives are prone to throw in the towel. Instead, it’s important to see progress in weeks and measurable results within months. By identifying opportunities that can help deliver quick wins and ROI, it’s possible to build a more sustainable framework for app modernisation.
