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.
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.
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 application modernization services 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
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.
Astadia and Cyber Infrastructure (P) Limited are recognized as the emerging companies in the application modernization services 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. 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.
TOP VENDORS In Application Modernization Services
- IBM1 Reviews
- ACCENTURE1 Reviews
- HCL1 Reviews
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Application Modernization Services Quadrant
|Breadth and Depth of Product Offerings|
|Product Features and Functionality|
|Focus on Product Innovation|
|Product Differentiation and Impact on Customer Value|
IBM’s expert advice, proven methods, and experience with agile, advanced DevOps, microservices, and APIs can optimize application portfolio faster.BUYERVENDOREXPERTS3.9MNM ANALYSTS
Accenture Application Modernization and Optimization (AMO) Services help organizations strip out unnecessary operating costs, reduce capital spending, and free IT staff to create value for the business.BUYERVENDOREXPERTS3.9MNM ANALYSTS
HCL’s ability to integrate several distinct capabilities has formed over decades. Some of them are automated tools that are built on automated code conversion for forward engineering-based legacy revitalization, machine learning-based cloud assessment, migration methodology, and application re-engineering.BUYERVENDOREXPERTS3.8MNM ANALYSTS
The Oracle Solution Modernization Service, delivered by Oracle Consulting, is designed to maximize clients' ROI from Oracle applications and technologies.BUYERVENDOREXPERTS3.7MNM ANALYSTS
Micro Focus enables modernization with the lowest cost and risk, through a comprehensive solution across three key pillars: Process, Infrastructure, and Application.BUYERVENDOREXPERTS3.6MNM ANALYSTS
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Cognizant creates an actionable Reference Architecture that charts the course from “As Is” to “To Be” transforming applications and infrastructure from a business-limiting to a growth-enabling state.BUYERVENDOREXPERTS3.5MNM ANALYSTS
Capgemini’s Application Modernization Offering revamps application portfolios for Oracle engineered systems.BUYERVENDOREXPERTS3.5MNM ANALYSTS
Fujitsu’s range of options covers a wide array of situations, not just migration.BUYERVENDOREXPERTS3.5MNM ANALYSTS
Tech Mahindra’s Application Modernization help modernize applications faster, ensuring a faster time to market. #Unlock Digital TransformationBUYERVENDOREXPERTS3.4MNM ANALYSTS
Dell offers a wide range of application modernization services that shift IT spend from maintenance to innovation, and change the focus from cost-savings to business agility. Unlike siloed services that other firms provide, Dell Services uses a proven, integrated approach that offers flexibility, uncovers new sources of revenue, and creates an adaptive enterprise.BUYERVENDOREXPERTS3.4MNM ANALYSTS
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YASH Technologies helps build a lean, robust, and future-forward IT asset portfolio designed to improve the agility of existing applications, reduce IT operating costs, and produce tangible business outcomes.BUYERVENDOREXPERTS3.3MNM ANALYSTS
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Migrates application to Bell.One cloud platform and uses the application's existing input/output fields to modernize without modifying itBUYERVENDOREXPERTS3.2MNM ANALYSTS
Wipro’s Application Modernization Solutions automate migration of data and business rules to modern, standardized environments, reducing or eliminating mainframe dependencies.BUYERVENDOREXPERTS3.2MNM ANALYSTS
CGI’s legacy application modernization offerings include a specialized Legacy Application Documentation (LAD) service designed to define and document the workflows of legacy applications in the absence of available subject matter experts and provide recommendations in terms of maintenance, rationalization, and migration.BUYERVENDOREXPERTS3.2MNM ANALYSTS
UST Global's follows a selective ROI-based portfolio approach with 360° requirements, mining to quickly generate TCO benefits with rapid migration.BUYERVENDOREXPERTS3.1MNM ANALYSTS
Supports both Greenfield and Brownfield modernization approaches and delivers an object-oriented replacement system in modern Java or .Net technology stack. Reduces total cost of ownership by upto 80%BUYERVENDOREXPERTS3.1MNM ANALYSTS
Asysco offers cost-effective and relatively faster solutions for migrating Unisys LINC, EAE, and COBOL mainframe applications to Windows and SQL.BUYERVENDOREXPERTS3.0MNM ANALYSTS
Virtusa’s re-engineering and migration services follow a structured and proven approach in order to facilitate migration in a structured, reliable, and predictable manner.BUYERVENDOREXPERTS3.0MNM ANALYSTS
Hexaware’s ‘API & Integration’ practice helps modernize existing integration platforms cost-effectively while providing end-to-end ownership to enable legacy systems for integration.BUYERVENDOREXPERTS2.9MNM ANALYSTS
Offers migration from OpenVMS, VME, and IBM Mainframe to Windows and Linux and has expertise in modernizing applications in COBOLBUYERVENDOREXPERTS2.9MNM ANALYSTS
Has global expertise in modernizing Microsoft technologies. Avanade leverages intelligent tools to analyze Microsoft technology investment, covering .NET, SharePoint, Exchange, and VB2NET, among others, to fast track migration.BUYERVENDOREXPERTS2.9MNM ANALYSTS
Follows Vertical and Horizontal migration; provides migration from legacy technologies such as AS/400, VB, Cobol, FoxPro, PowerBuilder, C++, Classic ASP and Dehi to modern technologies such as Java, .Net, Enterprise 2.0, SaaS and MobilityBUYERVENDOREXPERTS2.8MNM ANALYSTS
Saves cost by working on existing applications rather than replacing the whole setBUYERVENDOREXPERTS2.6MNM ANALYSTS
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An Open Source Solutions integrator with expertise in application modernization services in Open Source Software.BUYERVENDOREXPERTS2.4MNM ANALYSTS
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Transforms IBM, Unisys, and other mainframe applications using public, private, and hybrid cloud capabilitiesBUYERVENDOREXPERTS2.2MNM ANALYSTS
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