Enterprise Software Modernization: Strategic Implementation Guide and Partner Selection

If you run a business, you already know how important it is to stay on track in terms of technology. Performance means continuous improvement, and since we live in a fast-moving world, it’s important to keep up with technological innovations, including here enterprise software modernization. 

Perhaps you’ve heard about cloud technologies before and wondered why you’re hearing more and more about this cloud migration and its impact on costs, scalability, and accessibility. In this article, we will explain what it means to plan an enterprise software modernization project, and how to choose the right strategy, tailored to your business needs and guaranteeing successful implementation.

Understanding The Software Modernization Process – All The Roads You Can Take

The choices you make today lay the foundation for how your business will grow tomorrow. Let’s see what these choices are and what impact they can have. 

What is the Cloud?

First things first. Before understanding cloud migration strategies, let’s see where your business is migrating to. Think of the cloud as a virtual storehouse where information, applications, and files can be stored and accessed from any internet-connected device. Now that we know that, let’s take a look at how you can move your business to the cloud using various migration strategies.

Rehosting. Refactoring. Rearchitecting – What do they all mean for your business?

Each approach we’re about to discuss – rehosting, refactoring, and rearchitecting – represents a different way to move and improve applications, in order to make them more efficient in the cloud.

REHOSTING

Rehosting is taking your existing application and moving it to the cloud without changing anything about how it works. Everything stays the same, it just now uses cloud resources instead of your own servers. Imagine you have a restaurant that you want to move to a larger location to attract more customers. Instead of changing anything in the structure of the restaurant, you just move it to a better location.

REFACTORING

Refactoring is like taking your existing restaurant and making some internal changes to make it more efficient, for example, changing the layout of the kitchen or upgrading equipment to speed up cooking times. In the case of apps, refactoring means improving the code or modifying some functionality to make the app faster and easier to maintain, without completely changing it.

REARCHITECTING

Rearchitecting is the equivalent of building a completely new restaurant from scratch, with a completely different and much more modern structure. In the cloud, this involves completely rearchitecting the application to make it work much more efficiently, perhaps using microservices or other new technologies.

Which Software Modernization Approach Should You Choose for Your Business? – Benefits and Limitations

Common Scenarios for Each Software Modernization Approach – Find Out Which One Applies to Your Business

In enterprise software modernization, there is no one-size-fits-all solution. However, to help you make the best choice for your company, we will share 3 scenarios along with some key information you need to know when making your final decision:

• Scenario no.1 (Rehosting)  – Choose Rehosting if your company: needs a quick migration to the cloud without big changes, to reduce costs and preserve existing infrastructure.
• Scenario no.2 (Refactoring) – Choose Refactoring if your company: needs to improve existing applications, achieving performance and scalability without completely rewriting them.
• Scenario no.3 (Rearchitecting) – Choose Rearchitecting if your company: needs a complete transformation of your applications to make them scalable and flexible, adapting to new technological and business requirements.

The Proof of Success – Real-world examples of successful software modernizations

Airbnb
Airbnb has reached over 150 million users in ten years thanks to the cloud. Using Amazon Web Services (AWS), Airbnb can quickly scale up or down its resources, depending on how many users are active.

For example, if more people are looking for accommodations on any given day, Airbnb can increase the platform’s capacity to ensure smooth operation. This flexibility, combined with the security provided by AWS, guarantees that the platform remains consistently available.

Netflix

For over 200 million users globally to enjoy movies on Netflix, the company has turned to cloud computing to manage the huge amount of data and deliver quality service to its users, no matter how the numbers grow. 

When a new popular show or movie is released, Netflix can quickly scale up its infrastructure to ensure that millions of users can stream content without any buffering or service interruptions. 

Uber

With cloud computing, Uber has managed to expand rapidly, reaching over 40 million monthly active users in just six years. At peak times, when more people request rides, Uber can instantly scale the app’s capacity to cope with increased demand, without any disruptions or delays.

Exploring the Cloud, its Technologies, and Their Impact on Your Business

Cloud Technologies and Their Impact

As we have seen previously, cloud technologies have revolutionized the way businesses manage IT resources, bringing significant benefits in terms of scalability and flexibility. Among the largest cloud solution providers are: Amazon Web Services (AWS), Microsoft Azure, IBM Cloud, and Google Cloud Platform. Each of these platforms addresses specific business needs, having a major impact in several areas:

Accessibility Anywhere in The World

You can access files and applications from anywhere, no matter where your team is located.

An employee from another country can work on the same documents as a colleague in the office.

Automation of The Processes

Processes are done automatically, saving time and avoiding errors. Backing up files, for example, is done automatically in the cloud, so you don’t have to worry about losing important information.

Reduced IT Costs

You no longer have to invest in your own servers or their maintenance. This way, you save money by eliminating the need to pay for hardware and server maintenance staff.

Flexibility and Scalability

You can add resources or reduce them quickly as your business needs change. If your business is growing and you have more customers, you can add more servers in the cloud to keep up with demand.

Which Partner Fits Your Business Needs?

Amazon Web Services (AWS)

AWS is the global leader in cloud services, offering an extensive range of migration, storage, compute, and database solutions.

Benefits: High scalability, high flexibility, robust security and a global network of data centers.

Microsoft Azure

Microsoft Azure is a public cloud platform that integrates seamlessly with existing Microsoft solutions such as Windows Server, Active Directory, SQL Server, and Office 365. It is renowned for its hybrid integration options (private + public cloud).

Benefits: easy integration with the Microsoft ecosystem, extensive support for Windows and Linux-related applications, advanced hybridization options (Azure Stack), and security.

Google Cloud Platform (GCP)

GCP is particularly known for its data analytics and machine learning capabilities. Plus, Google offers advanced solutions in Big Data and AI.

Benefits: strong in data analytics, high performance and support for AI solutions, machine learning and advanced security.

Modern Architecture Patterns & Integration Capabilities

When it comes to application architecture, there are two major approaches you need to know about: monolithic architecture and modern microservices-based architecture. 

Monolithic architecture represents a model in which all the components of an application are integrated into a single system, while modern architectures divide the application into small, independent services that can be developed, deployed, and scaled separately.

The monolithic architecture therefore implies that all the application components are linked together in a single block, which makes upgrades more difficult and risky, while the modern architecture allows each component to be managed separately, providing more flexibility and ease of maintenance.

Examples of Modern Architecture Patterns

Microservices

The application is divided into small independent services, each with clear functionality. This way, teams can work on different parts of the app simultaneously and modify parts of it without affecting the whole application.

Serverless Architecture

Although it may sound counterintuitive, serverless doesn’t mean that there are no servers, but that you, as the user, don’t have to manage them. The cloud platform takes care of all the technical details, and you only pay for the resources you use, which makes it more flexible and economical.

Event-Driven Architecture

Applications are built around events (actions or state changes) that trigger processes or other events. This is an effective model for applications that need to react quickly to data changes, such as banking applications or e-commerce platforms.

Examples of Integration Capabilities

Integration capabilities refer to how the different components of a system can communicate and work together. Here are two well-known examples of integration capabilities:

APIs (Application Programming Interfaces)

APIs allow different applications to communicate with each other, enabling integration between different services and platforms (for example, integrating an online payment application with an e-commerce store).

Webhooks

Webhooks allow applications to notify each other when an event occurs. For example, a payment service can send a webhook to notify an order management system about finalized payments.

Future-proofing Considerations – An Always-Ready Business

Future-proofing refers to how cloud migration helps your business stay relevant and adaptive in the long term. Think of cloud migration as a solid foundation for your business. The more solid the foundation, the more it can withstand and evolve over the long term.

With modern architectures, your application will be able to quickly adapt to changing technology and market demands. You will be able to easily integrate new technologies and functionalities without having to make major changes, and your business will remain flexible and competitive, even in the face of new challenges.

How to Create the Right Software Modernization Strategy

Understanding Where Your Business Stands

Before moving to modern architecture, you need to understand how your current systems work. Assessing your current systems means doing a detailed audit of your current IT infrastructure, applications, servers, and processes.

In every system, certain parts are critical to its functioning, and others are less critical. Create a hierarchy of priorities based on the importance of each part of the system, then focus your efforts and resources on the essential parts that must work perfectly to avoid affecting the stability and performance of the system.

Weighing the Impact on Your Business

Once you’ve evaluated your current systems, you need to think about how modernization will affect the entire business. It’s important to analyze the impact on employees, business processes, costs, and customers.

In terms of costs, for instance, modernization may require a significant initial investment, but in the long run, it will lead to significant savings due to greater efficiency and scalability.

Is Your Team Ready for the Shift?

If you replace an old system with a cloud-based one, employees will have to get used to the new applications. This may involve a transition period where productivity may temporarily drop. It is important to plan how you will manage this impact in the short and long term.  

If your team is not familiar with new cloud solutions or modern development methodologies, you will need to invest in training. These trainings can be internal (company-organized courses) or external (online courses or workshops with industry specialists).

Setting Realistic Expectations with The Right Goals

It’s natural to want the best for your company and for it to happen as quickly as possible. At the same time, when faced with major changes, especially if you choose application rearchitecting, you need a very well-staged plan and realistic goals, correctly set for each step. 

These objectives must be specific and measurable. You need to know what you want to achieve at each step of the implementation and allocate the necessary resources to achieve those goals.

Enterprise Software Modernization – The Key to Successful Implementation

In the following section, we will review the three modernization models – rehosting, refactoring, and rearchitecting – and present a comparative table to get an overview of the implementation essentials.

Modernization Patterns	Rehosting	Refactoring	Rearchitecting
Timeline considerations	Fast, a few weeks/months.	Average, a few weeks/months.	Long, several months.
Success metrics	Success is measured by the application’s performance in the new environment, such as response time or lower operating costs.	Success is measured by improved application performance or ease of maintenance.	Success is measured by improving scalability, flexibility, and adaptability.
Team structure and responsibilities	The team focuses on migrating the application and minimizing changes to the application.	The team focuses on improving the code and optimizing existing functionality.	The team needs to completely reconfigure the application architecture, with extended roles (developers, architects, QA).

Software Modernization Challenges and Their Solutions

During the modernization process, several challenges may arise, requiring careful management. When we talk about risk mitigation approaches, we refer to the strategies and measures taken to identify, assess, and mitigate potential risks that may arise in the context of software modernization. These risks may include security, performance, data loss, or service disruptions.

Possible solutions

• Security: Implement strict cybersecurity protocols such as data encryption and multi-factor authentication.
• Performance: Conduct rigorous testing to ensure the new system can handle the workload without degrading performance.
• Data: Create regular backups and ensure a data recovery plan in case of loss or corruption.
• Continuity: Create a phased implementation planning to reduce downtime and maintain essential operations.

Case Studies in Software Modernization

Managing Business Continuity

The obstacle: During the process of changing the application architecture, there is a risk that day-to-day business activities may be interrupted. This can lead to financial and time losses.

The solution: Plan each migration step in detail, create a backup plan for data protection, and migrate systems gradually to minimize the impact on current operations.

Example: Imagine an online clothing store that wants to migrate from an outdated order management system to a modern e-commerce platform, but fears disruptions that could affect orders and deliveries. To overcome these challenges, the tech team can implement the migration on a low-traffic day, then they can fully back up the database and test the new system on a test server before making the switch.

Handling Legacy Data

The obstacle: Most old (legacy) applications contain valuable data, but it is stored in an outdated format that is difficult to integrate with new technologies.

The solution: Use data migration tools and techniques to ensure data is transformed and cleansed so that it is compatible with new platforms. 

Example: Let’s imagine an educational platform, where students and teachers of several schools are registered. Let’s say that their data was stored in a format that was not compatible with the new electronic record-keeping system, so instead of migrating all the data at once, the company may opt for a hybrid approach. This way, they keep the old data in a separate filing system and begin to enter the new data into the new modern software. At the same time, they can develop an integration API to allow access to the old data when needed, without affecting the performance of the new system.

Training and Adoption Strategies

The obstacle: Some of the employees may find it difficult to adapt to a new system or application, especially if they are used to a specific way of working.

The solution: Organize training sessions and workshops, create clear guidelines and educational materials, and provide ongoing support during the transition to ensure smooth adaptation.

Example: Consider this time a logistics company implementing a new delivery tracking system. The warehouse employees and drivers are not familiar with the new software and had difficulty using it. The company can organize customized training sessions for each department, with practical examples and easy-to-follow guides. 

Conclusions

To summarize, when deciding to start a software modernization strategy, it’s important to consider the specifics of your business, available resources, and long-term goals. Regardless of the approach you choose, implementing this modernization correctly brings significant benefits, such as reduced costs and improved performance.

Discover more industry insights on SaaS and software modernization in our blog articles here!