Legacy System Modernization Strategies for Businesses

Rehosting 

Rehosting, which is also known as "lift-and-shift," is the process of moving an legacy system from its current hardware setting to a new one without changing its code, features, or functions.  

Most of the time, this method is used to lower infrastructure costs or make an application more scalable without changing its logic.  

With the rise of cloud computing, rehosting has become very common because it lets businesses use the benefits of cloud technology, such as its freedom, scalability, and low cost.  

Key Benefits:  

• Quick implementation with minimal disruption. 

• Cost savings on infrastructure development.  

• Better uptime and scalability with cloud systems.  

Refactoring 

Refactoring is the process of reorganizing and improving an application's current code base without changing how it works.  

The goal of this method is to clean up the code, make it better organized, and make it easier to manage and work better.  

Refactoring is often used to bring applications up to date, so they work better with new technologies. It’s also used to get them ready for the upcoming updating steps, such as rearchitecting.

Key Benefits: 

• Reduced technical debt. 

• Enhanced performance and maintainability. 

• Better alignment with modern development practices and standards. 

Rearchitecting

Rearchitecting involves making key changes to the application's code to shift it to a new architecture. One way to do this is to switch from a fixed system to a microservices architecture.  

When you rearchitect an app, you usually want to make it more scalable, flexible, and fast. However, this method is more complicated than rewriting and generally needs a better understanding of how the application works and how it should be built. 

It is recommended to partner with an experienced application modernization services partner to execute this approach.  

 Key Benefits:  

• Improved scalability and flexibility.  

• Better alignment with modern architectural patterns. 

• Enhanced ability to integrate with new technologies and systems.  

Rebuilding 

When you rebuild an application, you rethink and rewrite it from start while keeping its scope and requirements. When the technology in the older system is so old that small changes like rewriting or rearchitecting are not possible or cost-effective, this method is used instead.  

When you rebuild something, it is essential to use new technologies and methods from the very beginning. This helps in creating a new app that meets the same business needs exactly as the old one.  

Key Benefits:  

• Modern technology stack and development practices.  

• Opportunity to rethink and improve upon existing functionalities.  

• Long-term maintainability and scalability.  

Replacing 

As obvious as it sounds, replacing is getting rid of an old system to make way for a new one that meets the same business needs.  

You can do this by using a ready-made solution or developing a new program from scratch.  

People usually think about replacing an old system when they can't find another way to make it work better with modern technology or when a ready-made solution has better benefits in terms of features, cost, or time to set up.

Key Benefits: 

• Access to up-to-date features and capabilities. 

• Potentially lower costs. 

• Quicker implementation with off-the-shelf solutions. 

• Elimination of legacy system maintenance and support challenges. 

When embarking on a legacy system modernization project, it's essential to adopt a strategic approach:

• Assess and Plan: Conduct a thorough assessment of the current legacy system to understand its architecture, dependencies, and business value. Develop a clear plan that aligns with business goals and objectives.

• Prioritize Business Needs: Focus on areas that deliver the most significant business impact, such as customer experience, operational efficiency, or compliance requirements.

• Embrace Agile Methodologies: Implement agile practices to allow for iterative development, frequent testing, and continuous delivery.

• Ensure Data Integrity and Security: Safeguard data during the modernization process and enhance security measures to protect against new threats.

• Skill Development and Training: Invest in training and skill development for staff to handle new technologies and methodologies effectively.

Issue Faced by the Organization: 
 
A major global food business was having a hard time with an array of old software and processes.  

Because these systems weren't linked together, there were flaws that hurt both production and profits.  

Also, the company was having trouble with its IT, HR/HCM, ERP, and Corporate Finance tools. Either these tools were being updated, were being shut down, or were not being used at all.  

Furthermore, problems arose from staff change and a lack of efficient manpower to handle the IT systems.  

Ideally, it was not the kind of situation such a leading giant would have wanted in a competitive market.  

Softura’s Solution:  

Softura stepped in to help with C-Level Advisory Consulting, and an Enterprise Architect worked closely with both the IT and business departments.  

Here are the initial steps taken: 

• Examine and sketch the current state of systems. 

• Identify and document business problems and technology limitations. 

• Define a simplified future state. 

• Consider various potential outcomes. 

• Evaluate strategies for optimal short- and long-term benefits.

Then, Softura planned and created a standard, worldwide site for self-service custom applications. Robotic Process Automation (RPA) processes were built into this site, with a master database for the organization's business units. It connected HR, ERP, Finance, Budgeting & Accounting, IT, and Growth Operations.