Application modernization services pertain to the transformation of legacy applications to optimized, modern applications or platforms. The major components of the services include assessment, migration, integration, replatforming, rehosting, recoding, rearchitecting, reengineering, remediation, and replacement and retirement.
360Quadrants recognizes the below-listed companies as the Best Application Modernization Services 2020 -
Top 10 Application Modernization Services in 2020:
- ERICSSON INC
- HUAWEI TECHNOLOGIES CO LTD
- NOKIA CORPORATION
- ORACLE CORPORATION
- AMDOCS LTD
- ETCRACKER TECHNOLOGY (NEC CORPORATION)
- CSG INTERNATIONAL
- REDKNEE SOLUTIONS INC
- ZTE CORPORATION
The application modernization services market is projected to go from a value of USD 6.87 billion in 2017 to reach USD 16.67 billion by 2022 at a Compound Annual Growth Rate (CAGR) of 19.4% during the period above. The market is likely to be driven by the increasing demand for agility in businesses to reduce the time-to-market. The use of big data and cloud computing is also expected to drive the market.
The MicroQuadrant provides information about the major players who offer application modernization services. It outlines the findings and analysis on how well each market vendor performs within the predefined MicroQuadrant criteria. The vendor evaluations are based on 2 broad categories: strength of product portfolio and business strategy excellence. Each category carries various criteria, based on which the vendors have been evaluated. The evaluation criteria considered under the strength of product portfolio includes breadth and depth of service offering (on the basis of the industries that the vendors cater to, solutions, and service offerings), service feature/functionality (on the basis of the overall capabilities of the services), focus on service innovation (on the basis of R&D activities for new service innovations), and service differentiation and impact on customer value (on the basis of the services’ unique qualities and the impact they have on the customers’ buying decision). The evaluation criteria considered under the business strategy excellence include the effectiveness of the growth strategy (on the basis of partnerships and revenue generation), channel strategy and fit (on the basis of the channel partners that the vendors cater to), geographic footprint (on the basis of geographic presence), and mergers and acquisitions strategy (on the basis of the company’s key mergers/acquisitions or partnership deals in the last couple of years).
IBM Cloud Migration Factory, Fujitsu Global Application Modernization, Accenture Application portfolio assessment services, Capgemini Collaborative Business Experience, Tech Mahindra Application Modernization, Dell, CGI Group, HCL Legacy Modernization, Avanade, Hexaware Technologies, Virtusa, Cognizant Rapid Mobilization Tool, Oracle Modernization Service, Wipro, ATOS Application Transformation and Management, and Micro Focus Enterprise Application Modernization have been recognized as the visionary leaders in the application modernization services market. They have a strong portfolio of services and these vendors have been marking their market presence by offering customized services as per the IT requirement of the companies. The growth strategies of these companies have helped them advance consistently in the market.
Idexcel and OSSCube have been recognized as the dynamic differentiators in the application modernization services market. These companies have an innovative portfolio of services. They also have an extensive network of channel partners and resellers to increase the deployment of their services across a multitude of verticals. The dynamic vendors have been consistently generating a positive revenue growth in the market, and their market position is boosted by their organic and inorganic ventures.
Bell Integrator Language-to-Language Conversion, Macrosoft Legacy Application Modernization, Sensiple, Nous Infosystems, Advanced Computer Software, Asysco B.V., and UST Global Legacy Modernization Services are recognized as the innovators in the market. These companies possess innovative services to cater to the future mobility demands. They focus on their service portfolio and have the robust potential to build strong business strategies for expanding their business and staying at par with the visionary leaders. These vendors have been consistently offering application modernization services to fulfill customers’ demands. The innovators have been at the forefront for deploying their services
Astadia and Cyber Infrastructure (P) Limited are recognized as the emerging companies in the market. The majority of the emerging vendors have been undertaking multiple acquisitions to boost their sales capabilities across various regions for offering services to a wide range.
Application Modernization Services Market Overview
This market has been studied and analyzed for the following segments: services, organization size, verticals, and regions. By service, application integration is expected to dominate with the largest market share as a result of the increasing need to integrate existing legacy applications and databases with new ones in order to update them. By growth rate, application replatforming is projected to lead during the forecast period. New platforms offer more scalability and flexibility for faster application development.
By organization size, the largest market share is projected for large enterprises during the forecast period. This can be attributed to the need to reduce high Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) of these organizations. Large enterprises, with high budgets for IT, employ in-house resources for application modernization services. Small and Medium-sized Enterprises (SMEs) are expected to exhibit the highest CAGR since the adoption of the lift-and-shift migration strategy is high among these organizations, which enables their businesses to scale and grow faster.
Among verticals, Banking, Financial Services, and Insurance (BFSI) is projected to dominate in terms of market share during the forecast period, as a result of digital transformation through new technologies and modernization of existing applications. The manufacturing vertical is projected to witness the highest CAGR; this could be a result of the need to improve operational processes, reduce costs, launch products faster, and eliminate location barriers.
By region, the largest projected market share for the forecast period is that of North America. Early adoption of application modernization services along with the high number of related projects are expected to drive market growth here. By growth rate, Asia Pacific (APAC) is expected to lead this market. This high growth rate can be a result of the increased spending on infrastructure improvements and the use of big data and cloud computing technologies.
Despite a high growth rate, the application modernization services market faces limitations due to the significantly high investments in legacy systems, which restrain the deployment of advanced service technologies.
IBM has a portfolio of modernization services that showcases application portfolio assessment, application migration, UI modernization, application integration, application re-hosting, and post-modernization services. IBM Cloud Application Platform gives users the tools needed for refactoring existing environments to platforms that use latest technology to run across several environments and clouds. Users have the flexibility to apply existing applications through the use of microservices, containers, integrated DevOps, and Kubernetes.
Accenture provides Application Modernization and Optimization (AMO) services to help businesses minimize unnecessary operating costs and reduce capital expenditure in order to create value for the organization. Their specialists help clients answer questions pertaining to whether to renew, enhance, consolidate, replace, retire, or rebuild applications showcased in their portfolio. With Accenture, companies are able to derive the most value from existing applications and can also decrease costs and risks over the short, medium, and long terms.
HCL displays its efficiency in legacy application modernization with its ability to integrate multiple unique capabilities gained through decades of experience. These capabilities are driven by automated solutions that are created for generating code automatically, and legacy revitalization based on forward engineering. HCL is also capable of ML-based cloud assessment, migration, and re-engineering of applications.
Microsoft Azure, one of the best cloud environments for applications, covers frontend, backend, intelligence, data, and DevOps using its full-stack cloud. Azure enables swifter application modernization by making use of a customer’s preferred technology stack. It allows for seamless creation of applications in the cloud.
The Oracle Solution Modernization Service provided by Oracle Consulting helps clients maximize ROI from technologies and applications. By optimizing existing application usage and identifying business value, Oracle’s Solution Modernization Service expands business capabilities and reduces complexities of technology. The service helps customers identify risks and allows the use of proven strategies to recognize and manage these risks before the organization's progress can be affected.
Cognizant upgrades its IT infrastructure and applications to meet the increasing demand and ensuring security. The company uses modern technologies, to mitigate risks related to transformation. Additionally, the company deploys simple solutions to transform and streamline applications and infrastructure at speed and scale.
Tech Mahindra offers legacy modernization services address the needs of customers. These services help reduce high maintenance costs of the present IT environment instead enables seamless interoperability among disparate systems.
The exhaustive range of application modernization services provided by Dell shifts the costs associated with IT away from maintenance and towards innovation and focuses on business agility rather than cost reduction. Dell relies on an integrated approach to offer its customers flexibility, new revenue sources, and the creation of an adaptive enterprise. It offers users accelerated success in application modernization services by introducing the application development team to experts who help them in the assessment, planning, refactoring, configuration, testing, deployment, and transitioning of the existing application portfolio to operate on a cloud platform/container.
Micro Focus has app modernization capabilities that are both low-cost and low-risk. It analyzes approaches across depths, from keeping application logic largely unmodified to allowing incremental and productive evolution. Micro Focus helps users modernize their process for application delivery through new tools and methods for Agile and DevOps. It also gives users easy and modern access to mainframe applications and data.
DXC is a renowned provider of comprehensive services for application performance management. When managing application experiences, DXC mitigates the risk of failure by accelerating detection, problem resolution times, and root cause analyses. DXC’s comprehensive portfolio of public cloud-based application management services support applications operating on Microsoft Azure, AWS, and GCP cloud-native capabilities.
Fujitsu Global Application Modernization service enables clients to use older strategic applications to their full potential. By using Fujitsu’s application modernization service, clients can improve the usability, longevity, accessibility, and functionality of their apps. Fujitsu also has the capacity to address other issues such as high operating costs, vendor lock-in, skills rarity, technological redundancy, and high time-to-market.
Capgemini makes individual applications more flexible by improving interoperability between current legacy systems, business functions that have recently been migrated to newer platforms, and external systems. With Capgemini, legacy assets preserve their business value, intellectual capital is conserved, and the cost and complexity of the business’ applications portfolio are reduced.
Infosys helps organizations that cannot scale-up due to the transformation of their legacy systems to next-generation architecture. Infosys develops APIs as microservices using Infosys Cornerstone platform (PaaS) that helps simplify the creation of microservices as well as reduce its cost. Infosys legacy solution offers a framework to achieve economies of scale, speed-to-value, enable agility, and reduce run cost.
Hexaware API & Integration helps upgrade existing integration platform by not only in a cost-effective way but also provide an end-to-end ownership to enable legacy system for integration. Hexaware plans to help customers adopt the principles of cloud by using the Cloud Infrastructure.
Wipro Application Modernization Solutions automates data migration and business rules. Wipro Digital Modernization Platform Application Migration Toolkit automates the application migration in a secure and cost-effective way and helps organizations optimize their software maintenance cost.
YASH Technologies helps clients create a robust, lean, and future-oriented portfolio of IT assets that improves the agility of current applications, reduces the costs of IT operations, and leads to significant business outcomes. YASH decreases customer dependency on legacy applications and makes their digital infrastructure compatible with latest technologies like the cloud, subsequently allowing for a simplified service model.
The Virtusa Healthcare application modernization program offers end-to-end transformation of legacy applications with a focus on customer experience, business value, and operational benefits. It provides a framework for Digital API and Microservices that uses proven accelerators as well as API connectors for third party and technology platforms. This allows support for swift connectivity and integration. Using Virtusa’s application modernization services, existing applications and processes become highly agile, flexible, integrated, and streamlined.
CGI offers a specialized Legacy Application Documentation (LAD) service that is designed to undertake definition and documentation of legacy application workflows and provide recommendations regarding maintenance, migration, and rationalization.
UST Global considers legacy modernization as a catalyst to unlock new opportunities and provide clients with maximum business value. The company helps reduce the total cost of ownership. The company undertakes an ROI-based portfolio approach in applying modernization tools and frameworks.