Application Modernization: Keys to Success

Application Rationalization: Starting the Journey to Innovation

To make progress with digital transformation, businesses need to build modern cloud and hybrid IT systems driven by seamlessly integrated applications 

Faced with increased competition and the pressure to trim operational overhead, business leaders sooner or later realize they need to take stock of their applications and decide what to keep, what to replace and what to retire. We call this process “application rationalization.”

One reason for this scrutiny of past investments? Technical debt is far too high in many enterprises. Technical debt is the accumulated burden required to maintain IT projects developed or integrated hurriedly in the past.

Too often, corner-cutting in application development or provisioning creates systems that are difficult and costly to maintain, consuming a larger and larger share of IT budgets — as much as 20 to 50 percent in some large enterprises.

Technical debt ends up starving IT organizations of the funds, time and attention they could otherwise devote to new strategic initiatives such as digital transformation. One way or another, old, costly to maintain applications need to be replaced with modern applications.

And these days that usually means cloud applications and services. Application modernization is imperative for any IT organization that wants to be the driver of innovation within an enterprise.


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