In the rapidly evolving world of technology, businesses must constantly adapt and modernize their applications to stay competitive. Application modernization is a crucial component of digital transformation, delivering simplification and automation as businesses update their apps. This guide will delve into the tools businesses use to aid application modernization, illustrating how these solutions enhance efficiency, reduce costs, and support long-term growth.
The Need for Application Modernization
Modernizing applications is not just about keeping up with technology; it’s about transforming business operations to improve efficiency and customer experience. As Karl Feldman, managing partner at Hinge, states, “Some organizations are being left behind because technology is moving so quickly.” The IBM Institute for Business Value (IBV) highlights that application modernization has become a “business imperative” for many companies. A 2022 poll of IT executives by IBV and Oxford Economics found that over 80 percent of respondents viewed updating traditional applications to meet current tech standards as central to their business strategy.
Paychex Flex: A Case Study in HR Management
Paychex Flex exemplifies the transformative power of application modernization. Based in Rochester, N.Y., Paychex is an industry-leading human capital management company. Its flagship app, Paychex Flex, helps businesses manage human resources challenges, from payroll and time tracking to insurance benefits and 401(k) management.
Chad Lown, director of infrastructure at Paychex, recognized the need to improve efficiencies in their software platforms. The solution was Red Hat OpenShift, a Kubernetes-powered platform for developing and running containerized applications. This platform, combined with Red Hat’s OpenStack, has significantly reduced the time required to build new applications or add features to existing ones. “What used to take us months only takes days,” Lown explains, emphasizing the efficiency gained through application modernization.
The Role of Red Hat OpenShift
Red Hat OpenShift plays a pivotal role in simplifying app creation and management. It provides a platform for developing and running containerized applications, which reduces bottlenecks and enhances collaboration between development and operations teams. The use of microservices within Paychex Flex, managed in OpenShift, has drastically reduced the time to build new applications and add features.
Moreover, OpenShift comes with tools for detecting and correcting problems before they become serious. “If we’re using too much memory or running out of a resource, it automatically does what it needs to do to take that issue out of the mix,” Lown notes. This proactive approach ensures smooth operations and minimizes downtime, enhancing customer satisfaction.
The Imperative of Business Application Modernization
As companies adopt new computing infrastructures and architectures, their business applications must evolve to meet current standards. This modernization is vital for maintaining competitive advantage and operational efficiency. According to Karl Feldman, “The firms that are growing the fastest and reporting the greatest profitability are often the ones that are really leaning into application modernization.”
Application modernization involves updating software to leverage new technologies, improve performance, and meet regulatory requirements. This process can include migrating applications to the cloud, refactoring code, and integrating new features. The goal is to create a more agile, scalable, and secure application environment that supports business growth.
ATPCO: Embracing Cloud Infrastructure
ATPCO, an airline-owned organization near Washington, D.C., is the primary source for merchandising and pricing data for over 440 carriers worldwide. Over the past few years, ATPCO has replaced its owned and operated data centers with a third-party public and private cloud infrastructure. This shift has allowed the company to develop and operate more than 100 business applications in production using Amazon Web Services (AWS).
Randy Strother, director of application architecture at ATPCO, explains that the migration to AWS was driven by the need for reliability, agility, and scalability. Previously, provisioning apps as microservices took weeks or months. Now, with AWS, the team can deploy new apps within minutes and scale as business demands change. This agility is crucial for responding to market changes and customer needs promptly.
Maritz: Streamlining DevOps with Oracle Cloud
Ron Hunsaker, vice president of enterprise application services at Maritz, led the company’s pivot to a cloud-based app development strategy using Oracle solutions. Maritz, a sales and marketing services company, had relied on an on-premises data center for its business applications. However, the need to consolidate financial workloads across business units prompted the shift to Oracle’s cloud-based solutions.
The transition to Oracle’s low-code and no-code platform and Oracle WebLogic Server has simplified app development and modernization. The pay-as-you-go pricing model of Oracle’s cloud services has also resulted in significant cost savings. Hunsaker highlights the role of artificial intelligence in future Maritz applications, emphasizing the importance of modernization for staying relevant and competitive.
Benefits of Application Modernization
Application modernization streamlines operations, reducing the time and effort required to develop and maintain applications. This efficiency translates to cost savings, as businesses can allocate resources more effectively. For example, ATPCO’s migration to AWS reduced the time for app deployment from weeks to minutes, enabling the company to respond quickly to market demands.
Modernized applications are more agile and scalable, allowing businesses to adapt to changing needs and growth opportunities. Paychex Flex’s use of Red Hat OpenShift enables rapid development and deployment of new features, enhancing the platform’s agility. Similarly, ATPCO’s cloud infrastructure provides the scalability needed to support its global operations.
Modernizing applications helps businesses meet current security standards and regulatory requirements. This is particularly important in industries with strict compliance regulations, such as finance and healthcare. By leveraging advanced security features in modern platforms, businesses can protect sensitive data and reduce the risk of breaches.
Modern applications offer improved performance, reliability, and user experience. This enhances customer satisfaction and loyalty, as users benefit from faster, more reliable services. Paychex Flex’s efficient HR management features exemplify how modernization can lead to a better customer experience.
Challenges of Application Modernization
Despite the benefits, application modernization comes with challenges that businesses must navigate. These include:
Many organizations have legacy systems that are difficult to modernize due to outdated technology and technical debt. Modernizing these systems requires careful planning and investment to avoid disrupting business operations.
Modernizing applications often requires new skills and expertise that existing IT teams may lack. Businesses must invest in training and development to equip their teams with the necessary skills for successful modernization.
Application modernization can be costly and resource-intensive. Businesses must balance the need for modernization with budget constraints and resource availability, prioritizing projects that deliver the most significant impact.
Strategies for Successful Application Modernization
To overcome these challenges and achieve successful application modernization, businesses should adopt the following strategies:
Before embarking on modernization projects, businesses should conduct thorough assessments of their existing applications and infrastructure. This includes identifying legacy systems, evaluating technical debt, and determining the best modernization approach.
A clear roadmap outlining the steps and milestones for modernization is essential. This roadmap should prioritize projects based on business needs and impact, ensuring that resources are allocated effectively.
Investing in training and development is crucial for equipping IT teams with the skills needed for modernization. This includes providing access to training programs, certifications, and hands-on experience with new technologies.
Automation tools can streamline the modernization process, reducing the time and effort required for development and maintenance. Businesses should explore tools that support continuous integration and delivery, automated testing, and deployment.
Partnering with experienced service providers and consultants can provide valuable expertise and support for modernization projects. These partners can offer insights, best practices, and resources to ensure successful outcomes.
Conclusion
Application modernization is a critical component of digital transformation, enabling businesses to enhance efficiency, reduce costs, and improve customer experience. By leveraging modern platforms and tools, companies like Paychex, ATPCO, and Maritz have successfully transformed their operations, demonstrating the significant benefits of modernization.
Despite the challenges, businesses can achieve successful modernization by conducting comprehensive assessments, developing clear roadmaps, investing in training, leveraging automation tools, and partnering with experts. As technology continues to evolve, staying current with application modernization is essential for maintaining competitive advantage and supporting long-term growth.
In the words of Ron Hunsaker, “You have to modernize to stay relevant.” By embracing application modernization, businesses can ensure they remain at the forefront of their industries, delivering value to customers and stakeholders alike.
