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.

 

COMPETITIVE LEADERSHIP MAPPING TERMINOLOGY

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).

VISIONARY LEADERS

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.

INNOVATORS

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

DYNAMIC Differentiators

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.

EMERGING COMPANIES

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

  1. IBM
    1 Reviews
    3.9
  2. ACCENTURE
    1 Reviews
    3.9
  3. HCL
    1 Reviews
    3.8

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Application Modernization Services Quadrant

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KEY BUYING CRITERIA

Product Maturity
Strategic Maturity
Use Case Maturity
Most IMPORTANT
0.0
0.0
0.0
Breadth and Depth of Product Offerings
5.00
5.00
5.00
Product Features and Functionality
5.00
4.55
4.60
Focus on Product Innovation
2.25
2.60
1.80
Product Differentiation and Impact on Customer Value
4.55
4.10
4.30
LEAST IMPORTANT LESS IMPORTANT

TOP VENDORS

  • IBM’s expert advice, proven methods, and experience with agile, advanced DevOps, microservices, and APIs can optimize application portfolio faster.

    BUYER
    VENDOR
    EXPERTS
    3.9
    MNM 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.

    BUYER
    VENDOR
    EXPERTS
    3.9
    MNM 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.

    BUYER
    VENDOR
    EXPERTS
    3.8
    MNM ANALYSTS
     
  • The Oracle Solution Modernization Service, delivered by Oracle Consulting, is designed to maximize clients' ROI from Oracle applications and technologies.

    BUYER
    VENDOR
    EXPERTS
    3.7
    MNM ANALYSTS
     
  • Micro Focus enables modernization with the lowest cost and risk, through a comprehensive solution across three key pillars: Process, Infrastructure, and Application.

    BUYER
    VENDOR
    EXPERTS
    3.6
    MNM ANALYSTS
     
  • BUYER
    VENDOR
    EXPERTS
    3.6
    MNM ANALYSTS
     
  • 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.

    BUYER
    VENDOR
    EXPERTS
    3.5
    MNM ANALYSTS
     
  • Capgemini’s Application Modernization Offering revamps application portfolios for Oracle engineered systems.

    BUYER
    VENDOR
    EXPERTS
    3.5
    MNM ANALYSTS
     
  • Fujitsu’s range of options covers a wide array of situations, not just migration.

    BUYER
    VENDOR
    EXPERTS
    3.5
    MNM ANALYSTS
     
  • Tech Mahindra’s Application Modernization help modernize applications faster, ensuring a faster time to market. #Unlock Digital Transformation

    BUYER
    VENDOR
    EXPERTS
    3.4
    MNM 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.

    BUYER
    VENDOR
    EXPERTS
    3.4
    MNM ANALYSTS
     
  • BUYER
    VENDOR
    EXPERTS
    3.4
    MNM ANALYSTS
     
  • 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.

    BUYER
    VENDOR
    EXPERTS
    3.3
    MNM ANALYSTS
     
  • BUYER
    VENDOR
    EXPERTS
    3.3
    MNM ANALYSTS
     
  • Migrates application to Bell.One cloud platform and uses the application's existing input/output fields to modernize without modifying it

    BUYER
    VENDOR
    EXPERTS
    3.2
    MNM ANALYSTS
     
  • Wipro’s Application Modernization Solutions automate migration of data and business rules to modern, standardized environments, reducing or eliminating mainframe dependencies.

    BUYER
    VENDOR
    EXPERTS
    3.2
    MNM 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.

    BUYER
    VENDOR
    EXPERTS
    3.2
    MNM ANALYSTS
     
  • UST Global's follows a selective ROI-based portfolio approach with 360° requirements, mining to quickly generate TCO benefits with rapid migration.

    BUYER
    VENDOR
    EXPERTS
    3.1
    MNM 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%

    BUYER
    VENDOR
    EXPERTS
    3.1
    MNM ANALYSTS
     
  • Asysco offers cost-effective and relatively faster solutions for migrating Unisys LINC, EAE, and COBOL mainframe applications to Windows and SQL.

    BUYER
    VENDOR
    EXPERTS
    3.0
    MNM 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.

    BUYER
    VENDOR
    EXPERTS
    3.0
    MNM 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.

    BUYER
    VENDOR
    EXPERTS
    2.9
    MNM ANALYSTS
     
  • Offers migration from OpenVMS, VME, and IBM Mainframe to Windows and Linux and has expertise in modernizing applications in COBOL

    BUYER
    VENDOR
    EXPERTS
    2.9
    MNM 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.

    BUYER
    VENDOR
    EXPERTS
    2.9
    MNM 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 Mobility

    BUYER
    VENDOR
    EXPERTS
    2.8
    MNM ANALYSTS
     
  • Saves cost by working on existing applications rather than replacing the whole set

    BUYER
    VENDOR
    EXPERTS
    2.6
    MNM ANALYSTS
     
  • BUYER
    VENDOR
    EXPERTS
    2.5
    MNM ANALYSTS
     
  • An Open Source Solutions integrator with expertise in application modernization services in Open Source Software.

    BUYER
    VENDOR
    EXPERTS
    2.4
    MNM ANALYSTS
     
  • BUYER
    VENDOR
    EXPERTS
    2.3
    MNM ANALYSTS
     
  • Transforms IBM, Unisys, and other mainframe applications using public, private, and hybrid cloud capabilities

    BUYER
    VENDOR
    EXPERTS
    2.2
    MNM ANALYSTS
     
  • BUYER
    VENDOR
    EXPERTS
    2.2
    MNM ANALYSTS
     
  • BUYER
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    MNM ANALYSTS
     
  • BUYER
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    MNM ANALYSTS
     
  • BUYER
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TOP REVIEWS

 
Vice President,Company Name Classified
Vice President, Company Name Classified
#10 in Application Modernization Services

“Modernize application"

(*)(*)(*)(*)(*)5
They have gone above and beyond application which help us modernize our applications faster and in a more efficient manner, ensuring a faster time to market.
General Manager,Company Name Classified
General Manager, Company Name Classified
#11 in Application Modernization Services

“On time within budget"

(*)(*)(*)(*)(*)5
The application modernization services that Dell provided were on time and within budget, delivering immense value to our organization.
Project Manager,Company Name Classified
Project Manager, Company Name Classified
#12 in Application Modernization Services

“Scaling up the product"

(*)(*)(*)(*)(*)5
They were very committed to scaling up the product to best fit as per our requirenment. It has transformed our business and technical environments with modernization and application portfolio management services that leverage innovations in cloud, mobility, cyber, social and analytics.
Head - Product Management,Buyer Healthcare
Head - Product Management, Buyer Healthcare
#1 in Application Modernization Services

“Strong project management"

(*)(*)(*)(*)(*)5
We like their strong project management and analytical skills and their ability to understand our end client’s requirements. Their three phases which includes replatform, repackage, refactor are quite impressive. At any point along the replatform-repackage-refactor journey, it''s reasonable and expected to externalize the business value in an application as APIs.
Head - Product Management,Buyer Healthcare
Head - Product Management, Buyer Healthcare
#8 in Application Modernization Services

“Improved returns on IT budgets"

(*)(*)(*)(*)(*)5
It provides a clear method of working with old and new, package and bespoke applications to deliver improved returns on IT budgets.
General Manager,Company Name Classified
General Manager, Company Name Classified
#3 in Application Modernization Services

“Cost Savings"

(*)(*)(*)(*)( )4
It modernize legacy portfolio and drive cost savings, technology risk reduction and establish futuristic technology landscap. Especially for the cost savings, HCL did a good job. We''re very happy with the results.
General Manager,Company Name Classified
General Manager, Company Name Classified
#5 in Application Modernization Services

“Lower Cost"

(*)(*)(*)(*)(*)5
Their offering includes lower cost and improve delivery speed for core business systems by modernizing current technology and processes. I would persuade someone to switch to Microfocus from other companies."
Business Analyst,Company Name Classified
Business Analyst, Company Name Classified
#4 in Application Modernization Services

“Scalability"

(*)(*)(*)(*)(*)5
I’m a big fan of what Oracle has done. I don’t think they could change much. Their service are scalabe and focus on the use of existing application assets when tranferring functionality to the new languages, databases, and services.
Project Manager,Company Name Classified
Project Manager, Company Name Classified
#7 in Application Modernization Services

“Path to legacy modernization"

(*)(*)(*)(*)(*)5
No matter where an organization is on the path to legacy modernization, Cognizant can help companies chart a roadmap based on their priorities and business objectives.
Global Head - Service and Product Development,Company Name Classified
Global Head - Service and Product Development, Company Name Classified
#2 in Application Modernization Services

“Analytical Capabilities"

(*)(*)(*)(*)(*)5
I’ve been impressed with the analytical capabilities and quality of work on the engineering end. It helps us to get the most value from their existing applications over the long term as well as helped us to reduce certain costs and risks
Vice President,Company Name Classified
Vice President, Company Name Classified
#6 in Application Modernization Services

“Innovative Solutions"

(*)(*)(*)(*)( )4
The firm offering is committed to reducing client technical debt with innovative solutions. The goal is to move client solutions out of the mainframe and into cloud services, to improve efficiency and reduce costs. Overall, it’s been a great experience.
Other,Company Name Classified
Other, Company Name Classified
#9 in Application Modernization Services

“Project Management"

(*)(*)(*)(*)(*)5
We like their strong project management skills and their ability to understand our end client’s requirements. Fujitsu service focuses on your business requirements first and, through the modernization process, unleashes the enormous potential in existing applications.