"Our integration with the Google Nest smart thermostats through Aidoo Pro represents an unprecedented leap forward for our industry."
- Antonio Mediato, founder and CEO of Airzone.
We can expect the application modernization services market to increase from $19.82 billion by 2024 to $39.62 billion by 2029, with a CAGR of 14.9% from 2024 to 2029, according to MarketsandMarkets.
Organizations must consistently develop and adapt to stay competitive and relevant in technological advancements, evolving customer expectations, and increased competition. Application modernization is the foundation of this transformation, which is necessary for organizations that aspire to improve customer experience, scalability, and agility in the contemporary digital economy.
This blog explores what an application modernization strategy truly means, why it is essential for a future-ready organization, and how tech leaders can approach it with clarity and impact.
Let’s begin by understanding application modernization strategy and why it matters to forward-thinking businesses.
An application modernization strategy outlines how an organization plans to update its existing applications based on its specific business goals and the extent of changes required to the application's code. This strategy is formulated during the planning phase and executed during implementation, ensuring a structured approach to modernizing legacy systems. Organizations can choose from several modernization approaches to implement this strategy effectively, each offering a different balance of speed, complexity, and transformation.
"Our integration with the Google Nest smart thermostats through Aidoo Pro represents an unprecedented leap forward for our industry."
- Antonio Mediato, founder and CEO of Airzone.
Let’s explore the key application modernization strategies, starting with one of the most straightforward options - rehosting.
Rehost
Also referred to as "lift-and-shift," this approach prioritizes speed and ease of implementation. Applications are moved from their existing environment to a new one with practically no code changes.
Replatform
Positioned between rehosting and refactoring, this strategy involves minor code adjustments to make applications compatible with modern cloud technologies without full architectural changes.
Refactor (or Repackage)
Refactoring aims to boost both speed and developer productivity. It requires minimal code updates that enable the application to integrate effectively with cloud-native tools and environments.
Rearchitect
Ideal for organizations needing scalability, re-architecting involves significantly modifying and expanding the app’s code and structure to leverage cloud capabilities fully.
Rebuild (or Rewrite)
This approach involves redeveloping an application from the ground up using modern cloud technologies. It’s resource-intensive but necessary when existing applications are outdated or lack critical functionality.
Replace
When an application no longer aligns with business needs, even after potential modernization, replacing it with a commercial off-the-shelf (COTS) solution may be best. While this can be faster than rebuilding, it may introduce limitations or process disruptions.
"By analyzing the data from our connected lights, devices and systems, our goal is to create additional value for our customers through data-enabled services that unlock new capabilities and experiences."
- Harsh Chitale, leader of Philips Lighting’s Professional Business.
"By analyzing the data from our connected lights, devices and systems, our goal is to create additional value for our customers through data-enabled services that unlock new capabilities and experiences."
- Harsh Chitale, leader of Philips Lighting’s Professional Business.
A well-structured application modernization roadmap helps organizations focus on key priorities and navigate transformation in the most efficient sequence. This roadmap is a strategic guide that defines the path from outdated legacy systems to a modern, agile IT infrastructure. Here’s a practical nine-step strategy to guide your modernization journey:
You can start by evaluating the current legacy applications. Understand their architecture, performance issues, technology stack, security gaps, compliance requirements, and business relevance. This assessment forms a baseline to help you measure progress and prioritize improvements.
Define what you want to achieve through modernization: boosting performance, reducing costs, scaling systems, or adding new capabilities. Clear objectives ensure alignment with overarching business priorities and provide a focused direction for your modernization efforts.
Application modernization often requires a cultural shift within the organization. Upskill teams, provide adequate training, and communicate the value of change to all stakeholders from leadership to end users. This helps minimize resistance and fosters support throughout the transformation.
Select technologies such as cloud platforms, programming frameworks, and integration tools that align with current requirements and future scalability. These tools should work seamlessly with existing systems and support your long-term technology vision.
Choose the most appropriate modernization path based on your system evaluation and business objectives. Common approaches include rehosting, replatforming, refactoring, rearchitecting, rebuilding, replacing, retaining, or retiring applications, each offering different cost, complexity, and time trade-offs.
Instead of building a new team internally, consider partnering with a vendor specializing in application modernization. Evaluate their technical expertise, project delivery capabilities, security practices, and ability to understand your business goals. The right partner can accelerate progress while ensuring quality.
Design your modernized application to be scalable and adaptable to evolve with your business needs. Integrate continuous delivery pipelines and automated testing to support ongoing updates and integrations, avoiding future technical debt.
Roll out the modernization plan in phases, starting with pilot initiatives when needed. Use defined KPIs to measure success across key areas:
These metrics provide visibility into the impact and progress of your modernization strategy.
Once applications are deployed, continuously monitor performance and gather feedback. Use data and analytics to identify opportunities for enhancement. Refining the application post-deployment ensures sustained alignment with business goals and long-term success.
Now that we have covered the 9-step roadmap, let’s discover the key benefits of a practical application modernization strategy.
"By analyzing the data from our connected lights, devices and systems, our goal is to create additional value for our customers through data-enabled services that unlock new capabilities and experiences."
- Harsh Chitale, leader of Philips Lighting’s Professional Business.
"By analyzing the data from our connected lights, devices and systems, our goal is to create additional value for our customers through data-enabled services that unlock new capabilities and experiences."
- Harsh Chitale, leader of Philips Lighting’s Professional Business.
Despite operating in a digitally advanced era, many organizations struggle to extract full value from their aging, on-premises systems. A well-structured application modernization strategy can transform these legacy applications into more agile, scalable, and future-ready systems.
Organizations can accelerate IT innovation and drive measurable business outcomes by treating application modernization as critical to their digital transformation efforts. Here are some of the core advantages:
Now that we have covered benefits, let's look at some common Application Modernization challenges.
While application modernization is essential to staying competitive in the digital-first world, the journey has obstacles. Organizations often face several common app modernization challenges that can delay or derail their efforts -
One of the most pressing issues is the lack of internal expertise to modernize legacy systems. Many businesses lack the technical know-how or resources to carry out successful transformations. Collaborating with an experienced modernization partner can bridge this gap, providing strategic guidance and execution support.
Organization-wide modernization can be cost-prohibitive, especially when dealing with complex, outdated systems that require specialized knowledge. A Managed Services model can ease this burden by spreading costs over time and avoiding significant upfront investments.
Modernization often involves handling sensitive data, which raises concerns around security and regulatory compliance. Failure to meet standards like GDPR or HIPAA can lead to serious consequences. Working with a trusted partner helps ensure that your modernization process includes robust security architecture and compliance protocols.
Many organizations embarking on digital transformation tend to concentrate solely on adopting new technologies to meet market and customer demands. However, true transformation isn’t possible without addressing the foundation and modernizing core applications. A well-crafted application modernization strategy is essential for improving availability, performance, and security, ensuring that applications remain relevant, scalable, and future-ready in today’s digital landscape.
Ready to modernize your applications and accelerate your transformation journey? Contact Softura today to get started.
Modernize Your legacy App That Moves Your Business Forward
Leverage our custom development expertise to create scalable, secure, and future-ready mobile apps.
These include system assessment, strategy planning, design, development, and testing.
Development builds new software; modernization upgrades existing apps to meet current needs.
Key tools include cloud platforms, microservices, containers, DevOps, and AI/ML.
The main trigger is when existing apps no longer meet business needs or user expectations.