Why CIOs need to modernize their applications now

CIO Modernize Applications

The sudden need for home office workplaces puts every application landscape to the test - and shows the need for modernization. A webcast of Todayus explains what IT decision-makers can do now. Florian Deter, Cloud Application Services Leader DACH, IBM Germany, and his colleague Marius Merkel, Brand Leader Hybrid Cloud Integration DACH, present proven approaches in the field of application modernization and discuss the topic with analyst Axel Oppermann. Specialist journalist Oliver Janzen from Todayus moderates the webcast.

Deter and Merkel clearly stand for the thesis that the cloud is an essential part of application modernization. Oppermann confirms this with an indication of a "huge growth" in the market, in figures this is more than 20 percent. Deter summarizes the complex topic in one sentence: Application modernization is intended to bring the existing landscapes into the new world in order to create added value.

Janzen starts the show with a viewer’s question about the biggest challenges in application modernization. There are several of them: 71 percent of viewers call the elaboration of the right target architecture, 64 percent also call the dependencies between the applications. "The issue of dependencies is often underestimated," says Merkel, adding: "The cost of dependencies is a challenge.

"Application modernization means removing hurdles"

The participants see the advantages of application modernization above all in faster time-to-market (70 percent) and process sustainability (65 percent). 53 percent also focus on technological sustainability - and not least on organizational improvements and more attractiveness for young talent.

A topic with many facets - which Oppermann breaks down in everyday language like this: "Application modernization means removing hurdles. Hurdles for digitization, hurdles for new business models." The increasing demand for the cloud does not surprise the analyst. He advises to tackle a modernization in concrete questions: "What do I do when and why? With whom? How? Which legacy applications have priority? Which applications will be strategically important in the future?"

Oppermann speaks of a "duty to modernize applications". Their cornerstones are firstly the competencies or lack of competencies for the operation of older systems as well as lack of support. Secondly, it is the competitive pressure of the market; thirdly, it is the employees, that is, the employee experience. The fourth cornerstone is the costs: not only the costs of operation, but also the costs of bad processes.

"The keyword corona is now on everyone’s mind," the analyst admits with a sigh, "but there is an economic downturn." "Application modernization will enable companies to respond better to economic fluctuations." This should not be postponed, "Oppmerann appeals, "it’s about better processes and more speed!"

The individual elements of such modernization are the "what", that is the architecture (from monolithic to microservices), the infrastructure and the provision. According to Oppermann, the "how" has four aspects: places (compatibility with preferred platforms), policies, people and processes. Analyst’s advice: "Don’t do this alone, find a service provider!" On the one hand, it needs industry experience and, on the other, it must be able to implement the whole process technologically." There are not many providers who can do everything, which is why medium-sized providers also buy on others, "he observes.

The "cognitive enterprise" has seven layers

The application modernization is only one component of the "coginitive enterprise", according to Deter. These are seven layers: first, new ways of working; second, thinking in platforms; third, workflows; fourth, technologies; fifth, data; sixth, next-generation applications; and seventh, open and secure hybrid cloud infrastructure. According to his observation, many decision-makers ask themselves how they take the departments on such an application modernization trip. He calls speed and scale, access to the possibilities of the cloud and, last but not least, securing sales. New ways of working can become possible.

The experts cite the conversion based on microservices as the highest modernisation value. Decision-makers need to consider where they can make lasting changes and drive cloud-native architectures forward. The status quo still looks different: "We know today that less than 20 percent of the workloads were moved," Merkel explains. To add immediately: "Our hypothesis: in the next five years there will be a big shift!"

A case study deals with the case of a large bank with grown applications. "It needed a central banking platform for employees, subsidiaries and customers." "We approached the topic iteratively," says Merkel. They looked at where Quick wins are, and also at which components they didn’t want to touch at first." An important point is compatibility, "emphasizes Merkel, "the bank had brought partners on board." Open Source made this possible. IBM Cloud Transformation Advisor supports the kick-start in the application modernization journey with very tangible questions: Where do we start and how, how much time does it cost, what benefits does it bring?

At the end of the show, a viewer inquires about the role of Lowcode developments.Merkel confirms: "This is a trend. And when I clean it up, it reduces operational costs!"