Key Application Modernization Challenges & How to Solve Them

Application modernization involves updating legacy applications to foster enhanced performance, security, and efficiency.  

In our rapidly evolving digital landscape, it's no wonder that an astounding 85% of organizations are engaged in or planning application modernization projects. 

Yet, this journey is far from straightforward. A staggering 79% of companies encounter different application modernization challenges, ranging from technical complexities, challenges in modernizing COBOL, and budget constraints. 

These statistics highlight a crucial aspect: while most businesses recognize the need for application modernization, many struggle with execution.  

But what exactly trips up most companies on this modernization mission? 

Join us as we dive into the most common pitfalls and share expert strategies for successful application modernization. 

Why Delve into the Challenges of Application Modernization?

Modernizing your applications is not just about updating software – it's realigning your entire operational framework to be more agile, competitive, and responsive to market demands.  

However, this process is often complex and can encounter numerous obstacles – from compatibility issues with existing systems to unexpected technical complexities. 

Understanding these challenges of application modernization is crucial as they can:  

• Influence the success of your modernization project 
• Impact your timelines 
• Affect your budget planning and allocation

Moreover, these legacy application modernization challenges can have a cascading effect on your overall business strategy. For instance, a delayed modernization project can hinder a company's ability to quickly respond to market changes, impacting its competitive edge. Similarly, budget overruns due to unforeseen technical challenges can divert funds from other critical business initiatives.  

That's why being well-versed in these challenges not only prepares you for a smoother modernization journey but also ensures that your investment in modernizing applications aligns with broader business objectives and strategies. 

Risk Mitigation and Strategic Planning 

Anticipating application modernization challenges is crucial for effective risk mitigation and strategic planning. By understanding potential roadblocks, you can: 

• Make better decisions: When you know the common pitfalls, you can make informed choices about technology stacks, development methodologies, and resource allocation. This knowledge guides you in selecting the most suitable approach for your specific needs, be it gradual refactoring or a complete system overhaul.  
• Enhance project management efforts: By identifying risks early on, you can develop contingency plans, set realistic timelines, and budget accordingly. This preparation helps maintain project momentum even when unexpected issues arise, reducing the likelihood of costly delays and overruns.  
• Come up with more innovative solutions: Instead of merely reacting to problems as they arise, you can focus on creative approaches to overcome these legacy app modernization challenges. This allows you to discover more efficient and effective ways to modernize applications.

Common Application Modernization Challenges 

For businesses, the shift from legacy systems to modern, agile frameworks is a strategic move, yet it's riddled with complexities that can make or break their success.  

Let's explore the common legacy application modernization challenges you can encounter and how to navigate them effectively. 

1.Legacy System Complexities 

Legacy systems, characterized by outdated code and technology, are difficult to update or maintain. Furthermore, the accumulated technical debt over years of use creates a complex web that hinders integration with newer, more agile systems.  

The consequence?  

A significant barrier to adopting modern technologies and practices that is potentially stalling the modernization process. 

Solution  

To navigate through the maze of legacy system complexities, you can adopt several techniques, including: 

• Refactoring techniques: This involves carefully restructuring existing code to improve its efficiency and readability without changing its external behavior. This method simplifies the codebase and makes it more adaptable to modern technologies. 
• Middleware solutions: Middleware serves as a connecting bridge, allowing different systems to communicate and function cohesively. This enables seamless data exchange and integration. 
• APIs for integration: APIs enable different software components to interact, making it easier to integrate legacy systems with modern architectures. By developing and utilizing APIs, you ensure that your older systems are functional and relevant in a modernized environment. 
• Technical debt assessment: Regular assessment and refactoring of the codebase ensures the system remains current, reducing maintenance challenges and paving the way for easier updates and enhancements. 

2. Data Management Challenges  

Data management poses a significant hurdle in application modernization, primarily due to the complexities of legacy data ecosystems and the inherent risks in data migration.  

Key concerns include potential data loss, data corruption, and translating data formats from old systems to new ones. These issues, if not appropriately managed, can disrupt business operations and lead to significant setbacks in the modernization process. 

Solution

You can tackle data management challenges by implementing: 

• Comprehensive data migration plans: Develop a robust migration strategy that includes meticulous data mapping and cleansing. Regularly conduct data validation checks to ensure accuracy and completeness, which minimizes risks of data loss or corruption during transition. 
• Phased system upgrades: Adopt a gradual approach to system upgrades, allowing for incremental changes and continuous monitoring. This method helps maintain business continuity, allowing you to adjust and rectify issues without overwhelming the existing system operations. 

3. Security and Compliance Risks 

Updating your applications often exposes new security vulnerabilities and potential compliance gaps, especially when transitioning to cloud-based systems or integrating with new technologies.  

These risks can lead to data breaches, legal penalties, and damage to a company’s reputation. 

Solution

Here are a few practical strategies you can use to tackle these key challenges in modernizing legacy applications: 

• Security-by-design approach: This involves integrating security measures into the architecture and development lifecycle, ensuring that security is a foundational element rather than an afterthought. 
• Regular security assessments: Conduct ongoing security evaluations to identify and address vulnerabilities promptly. This proactive stance towards security helps continuously safeguard the modernized application against evolving threats. 
• Updating compliance protocols: Stay abreast of the latest compliance regulations relevant to your industry and technology. To achieve that, you should regularly update your compliance protocols and ensure that your modernized applications adhere to current legal and industry standards. By doing this, you'll also avoid any potential legal issues and fines. 

4. Skill Gaps and Knowledge Loss 

Application modernization efforts often uncover significant skill gaps within organizations, especially when shifting towards cloud computing and microservices. This challenge is a result of the knowledge loss due to employee turnover, leading to a scarcity of expertise in both legacy and new technologies.  

Compounding this issue, a report reveals that 94% of IT decision-makers feel the talent shortage is a top challenge to cloud success, and 86% say it will slow down their cloud projects. And if it weren’t so sad, it would be funny that 63% of IT decision-makers say it’s harder to find a qualified engineer than it is to find Bigfoot. 

That paints a grim picture, but it explains why the skills gap keeps many Windows ISVs from migrating to the cloud. When they attempt to migrate to a cloud-native offering, they [CM2] quickly realize that their existing team can’t do the work, and finding qualified developers is costly and difficult, if not impossible. 

Solution

To bridge the skills gap, you can focus your efforts on: 

• Training and development: Prioritize training programs for existing staff – this will not only enhance their capabilities and knowledge of modern technologies but also boost their morale and commitment. 
• Recruitment and outsourcing: To address immediate needs and fill skill gaps, consider hiring new talent or outsourcing certain aspects of your modernization project. This can provide access to specialized skills and experience that your current team might lack.  
• Documentation and knowledge transfer: Establish a systematic documentation and knowledge transfer approach. This will help preserve vital institutional knowledge and facilitate smoother onboarding for new team members or external partners. 

5. Strategic and Operational Planning Challenges  

Strategic planning challenges (like budget limitations and organizational resistance to change) arise from the need to align modernization efforts with broader business objectives and the difficulty in predicting costs and outcomes accurately.  

Additionally, internal resistance can stem from a reluctance to abandon familiar systems and workflows.

Solution

To alleviate the situation and resolve these strategic challenges, you should:  

• Engage IT strategists: Bring on board experienced IT consultants who can craft a comprehensive and realistic modernization plan. Their expertise can provide valuable insights into optimizing resources and aligning the modernization strategy with business goals.  
• Adopt a phased approach to modernization: This allows for better budget management, minimizes disruptions, and provides opportunities for gradual adjustment and improvement. 
• Foster a learning culture: Encourage a culture of continuous learning and innovation within the organization. Provide training and workshops to help employees understand the benefits of modernization and how it can enhance their work. This can help overcome resistance and build a more adaptable and resilient workforce.

6. Future-proofing and Flexibility Concerns 

Ensuring that the new systems are adaptable and flexible enough to accommodate future technological changes and business needs is another major challenge.  

Avoiding vendor lock-in is crucial to maintaining flexibility when choosing the best solutions as technology evolves. This way, organizations ensure their modernized applications can seamlessly evolve without being hindered by rigid structures or exclusive dependency on a single technology provider. 

Solution

Eliminating flexibility concerns involves adopting strategies like: 

• Designing flexible architectures: Create modular and scalable architectures that enable easy integration and updates. This allows for the seamless addition or modification of features as business needs evolve.  
• Open standards and multi-cloud strategies: Embrace open standards and consider a multi-cloud strategy to avoid being locked into a single vendor's ecosystem. This ensures that your modernized applications can work across different platforms and cloud environments, providing greater control and choice for future technological decisions. 

7. Technical Infrastructure Optimization 

Optimizing the technical infrastructure involves effectively managing and upgrading the technical environment. This may include transitioning to advanced containerized platforms like Kubernetes.  

The challenge lies in ensuring that the infrastructure not only supports the modernized applications but also operates at peak efficiency without overutilization of resources. 

Solution

To overcome technical challenges, you can: 

• Implement monitoring and management tools: Deploy robust monitoring tools to keep a close eye on application performance and resource usage. These tools can identify inefficiencies and bottlenecks, enabling timely interventions. 
• Evaluate your infrastructure: Utilize resource management strategies to ensure that the infrastructure is neither underutilized nor overextended. This approach involves balancing the performance needs with cost efficiency, ensuring that the infrastructure is tailored to the specific requirements of the modernized applications. 

Conclusion: Overcoming Application Modernization Challenges 

In the quest for digital transformation, application modernization presents a series of intricate challenges, from legacy system complexities to strategic planning hurdles. These obstacles, while daunting, are not insurmountable and play a critical role in shaping the future of business technology.  

If you need assistance in your application modernization journey, Mertech is here to help. We offer application modernization services that not only address immediate challenges but also pave the way for future growth and innovation.  

Ready to upgrade your legacy applications?