Application modernization helps businesses in transforming their legacy systems into new applications. The transformation works towards integrating latest features and functionalities to the current business. 360Quadrants has identified the top 10 application modernization service providers.
Top 10 Application Modernization Companies
- IBM Corporation
- Aspire Systems
- Microsoft Corporation
- Blu Age
- Tech Mahindra
- Interra Information Technologies
Top Application Modernization Features
Legacy technology and IT infrastructure can create a problem. Application modernization services facilitate the movement of legacy systems to new applications or platforms, with the addition of new functionality to offer the modern functions to the business. Modernization possibilities include re-platforming, re-hosting, recoding, replacement and withdrawal, as well as modifications to the application architecture to clarify which option should be selected. Some of the main features include:
- Seamless User Experience
- API Integrations
- Recommendation Engines
- Conversational Interfaces
- Mainframe Data Connectivity
- Application Analysis
- Application Integration
- Platform Rehosting
- Green-Screen Modernization
- Service Enablement
Top 10 New Entrants in Application Modernization
These new entrants are the firms that have a great understanding of the latest technologies and trends, right from their inception. These companies may not be so widespread geographically, but they have offerings. These vendors are generally the ones who are beginning to emerge in terms of product portfolio and geographical coverage, and will need some time to gain traction in the market. Some of the emerging new entrants are:
- Cyber Infrastructure
- Espire Infolabs Pvt Ltd
- Advanced Computer Software
- Future Processing
- Hexon Global LLC
- XB Software Ltd
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.