How Application Modernization Services Drive Cost Savings for Your Business

The suggestion to switch from legacy hardware systems to cloud computing can be met with a stubborn “no” from management. While it can be intimidating, it is a change that will free up budget, save time, and improve customer and employee satisfaction.

Here we’re going to look at the monetary impact of legacy systems, how application modernization drives cost savings, and a practical example of this change.

The Cost Implications of Legacy Systems

When a company continues to use an outdated system to run its business it risks affecting its profitability with low speed and performance which can increase the risk of churn and decrease sales. 

If your UX is poor then users who try the free trial may give up on purchasing the software as they find it hard to use. 

Legacy systems also increase security threats as the manufacturer may not support it any longer, so they don’t maintain it, reducing the reliability your enterprise can expect. 

All these risks increase your TCO as time goes on, as your maintenance costs increase and your bottom line is affected.

A prime example of the consequences of legacy systems is from 2015 when planes were grounded at Paris Orly airport when a computer that was running on Windows 3.1 crashed in bad weather. The 2nd largest airport in France had to ground all planes for several hours as a computer that linked air traffic control systems ran a system that was 23 years old. This single computer controlled air traffic, and relied on one main maintenance worker, as other employees didn’t know how to use the system.

12 Ways Application Modernization Services Drive Cost Savings

Switching to the cloud and application modernization services you streamline your costs in these 12 key ways.

1. Reduce costs: By transitioning to cloud-based solutions, you lower infrastructure costs, reduce energy consumption between 30-60% and reduce physical space costs by up to 40%.
2. Increase operational efficiency: Streamline your enterprise’s processes, automate routine tasks, and cut down on manual efforts, enhancing operational efficiency and reducing costs.
3. Decrease downtime: A hidden cost is the amount of downtime that legacy systems suffer from. They’re prone to failures. Switching to modern applications reduces the costly downtime that can impact business operations.
4. Optimize performance: Track your cost efficiency performance in the cloud using Stratusphere, improving your transparency and understanding of your TCO.
5. Improve compliance: Compliance is a concern for 76% of businesses, it is a huge concern. However, by using modern technology and cloud services, you increase the compliance tools available at your fingertips. 
6. Accelerate time to market: Speed up development cycles by using modern technology, enabling you to launch products and services more quickly.
7. Better data management: Improve your data management by organizing your data in modern applications. This decreases your data fragmentation and saves your team time and effort.
8. Increase competitiveness: Being able to focus on delivering improvements, key strategies, and improving agility rather than battling legacy systems improves your competitiveness. 
9. Enhance customer experience: Using modern applications reduces downtime, and increases the opportunities for improvements, which improve customer experience and satisfaction. This leads to a decrease in churn and an increase in paying customers.
10. Streamline collaboration: Using cloud systems improves collaboration, as teams can easily and securely view and share information. This increases engagement and interest among employees, which translates into higher job satisfaction.
11. Long-term strategic savings: 94% of businesses reported security improvements after implementing cloud solutions. These cloud savings both through cost and risk is strategic for businesses, creating opportunities for future growth and adaptability.
12. Simplify business tech: Consolidating applications is a great way to modernize, as you’re able to increase productivity, improve insights, and improve cybersecurity by bringing multiple apps into a more integrated solution.

Before beginning to modernize your technology, evaluate your app portfolio to modernize in the right way. You need to analyze your tech stack before beginning your cloud migration and modernization. To feel the benefits, you must migrate and modernize in the right way. For help, reach out to StratusGrid. With 10+ years of modernizing applications to be cloud-native, our team of AWS-certified engineers are experts. Our team is recommended by AWS for its efficiency and reliability. 

What is An Example of Application Modernization?

There are multiple benefits of application modernization when you have a clear modernization strategy. To inspire you to start modernizing your tech stack in your company, we have Jaguar Fueling’s success story. 

A Success Story by StratusGrid

Jaguar Fueling has 30 years of experience and works across the United States. However, they were struggling with an on-site, outdated tech stack. They lacked modern systems which were posing a risk to the business’s continuity. Jaguar Fueling approached StratusGrid for help to migrate them to AWS. They wanted to follow best practices to reduce any potential impact and increase their scalability and security. 

After assessing its current environment, StratusGrid determined the best way forward with a personalized plan of action to reduce business disruption. We broke this into three high-level phases: Planning for the Migration/Modernization, Executing the Migration, and Final Cutover.

This provided Jaguar with full control over their setup, modernizing their technology and improving their management. We also implemented best practices around security in AWS to ensure data protection. Finally, using AWS they can now scale and grow with ease.

Building a Business Case for Application Modernization Services

To create a business case to modernize your applications, you need to consider 4 key aspects:

1. The problem: Depending on who you’re pitching to, it’s important to lay out the problem in an easy-to-understand way. You must talk about the main issue you’re facing and how you’ll solve it. 
2. The migration: Address the transition to more modern services, and the benefits this will bring not only your team but the business as a whole. 
3. The scope: Do not try to modernize all your applications at once. Present your plan to improve step by step.
4. The cost-benefit analysis: You need to present the value that this project will provide. Be honest about the costs, both monetary and resources, and highlight the importance of the change. 

In your business case, you should consider current applications, which are the most important to modernize, and which can wait. You should also present how modernizing will improve the business process and the possibilities for developing new applications faster and more efficiently.

Start Your Digital Transformation Business With StratusGrid’s Application Modernization Services

Modernizing your applications improve your processes, security, and satisfaction of customers and employees. It brings huge benefits to your business as a whole. However, it can be difficult to begin the transition to more effective technology. 

With StratusGrid, you don’t need to worry about doing it on your own. We have over 10 years of experience with modernization services. We create fully personalized project plans to minimize any impact to your business and increase your cost and performance efficiency. 

Transform your business results with StratusGrid’s modernization services. Get in touch with us today.

Frequently Asked Questions on Application Modernization

What are the benefits of application modernization?

Improve your user experience, security, scalability, and competitive advantage by modernizing your applications. Take advantage of elasticity in consumption of cloud services; pay only for what you provision, when you need it.

Why do enterprises need application modernization?

Increase your productivity, your software’s reliability, and decrease your time to market with application modernization.

Why should businesses modernize their legacy applications?

Modernize legacy applications to reduce your costs, and the complexities of your tech stack. It also streamlines maintenance processes, increasing your competitiveness.

What is the biggest driver of application modernization?

When you struggle with data integration, your business lacks agility, security is a challenge and you’re struggling with tech talent you need analyze modernizing your applications. Rapid iteration during software development lifecycle, provisioning compute and data resources immediately, on-demand.

BONUS: Find Out if Your Organization is Ready for The Cloud ⤵️