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
- Accenture
- HCL
- Aspire Systems
- Microsoft Corporation
- Oracle
- Blu Age
- Cognizant
- 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
- Devops
- Platform Rehosting
- Green-Screen Modernization
- Mobilization
- 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:
- Astadia
- Cyber Infrastructure
- Espire Infolabs Pvt Ltd
- Advanced Computer Software
- Sodifrance
- Metaware
- Future Processing
- Hexon Global LLC
- RapidValue
- 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.
Best Application Modernization Services 2022
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 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.
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.
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.
Cyber Infrastructure upgrades and modernizes legacy IT systems by adding value to them. The services provided by Cyber Infrastructure include application migration, application assessment for modernization, application re-platforming, application remediation, and data migration, among others. Cyber Infrastructure aids clients in risk minimization, increasing operational efficiency, generating higher revenue, minimizing disruptions, and optimizing application performance.
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.
Future processing provides a complete solution service to improve the efficiency of business for increasing the experience of the customer or generate the bottom line. Assisted software modernization is a service that will ease the challenge of working with legacy systems that stop your business from growing. Future processing completes the delivery within timeframes, and the team maintains open line communication and resources effectively as well as this platform is adaptable and organized, which adapts the preferred communication method of consumers and clients.
Analysts
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.
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.
