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Analysing the Economic Impact of Cloud-Based Application Modernisation

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Modernising applications and embracing cloud solutions are crucial for maintaining competitive advantage. To better understand the economic impact of these initiatives, a comprehensive study was conducted to evaluate the benefits, costs, and overall value of cloud-based application modernisation by Forrester.*

Modern businesses face constant pressure to innovate and adapt. One way to achieve this is through application modernisation, upgrading legacy systems and moving to cloud-based architectures. This transformation not only enhances agility and performance but also delivers significant economic benefits.

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Key Benefits of Application Modernisation

The study identified several key benefits for organisations that undertake cloud-based application modernisation:

  1. Increased Operational Efficiency
  2. Cost Savings
  3. Enhanced Agility and Scalability
  4. Improved Time-to-Market
  5. Strengthened Security and Compliance

*To understand benefits, costs, and risks, Forrester interviewed 11 representatives from six organisations and surveyed 191 respondents with experience using Azure app innovation solutions. For the purposes of this study, Forrester aggregated all of these results into a single composite organisation.

Case Study: Real-World Impact

A notable example from the study involves a global retail company that modernised its applications by migrating to the cloud. The company experienced:

  • Significant Reduction in IT Costs: By moving to a cloud-based environment, the retailer reduced its IT operational costs by 40%.
  • Enhanced Performance and Reliability: The new cloud architecture improved application performance and reliability, leading to better customer experiences.
  • Faster Innovation Cycles: With modern development tools and continuous integration/continuous deployment (CI/CD) pipelines, the retailer accelerated its innovation cycles and brought new features to market more rapidly.

Maximise the Benefits of Application Modernisation

Businesses should consider the following strategic insights:
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Assess and Prioritise

Conduct a thorough assessment of existing applications to identify modernisation priorities based on business impact and technical feasibility.
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Adopt a Phased Approach

Gradually migrate applications to the cloud in phases, starting with less critical systems to minimise risk and gain quick wins.
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Leverage Expertise

Partner with experienced cloud service providers and consultants to ensure a smooth transition and avoid common pitfalls.
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Invest in Training

 Equip your IT team with the necessary skills and knowledge to manage and optimise cloud environments effectively.

The economic impact of modernising applications and migrating to the cloud is substantial, offering increased efficiency, cost savings, and enhanced business agility. As demonstrated by the case study, organisations that embrace these changes can achieve significant operational improvements and drive innovation.

For businesses seeking to stay ahead in an evolving market, application modernisation is not just an option but a strategic imperative. By leveraging cloud technologies and following best practices, companies can unlock new opportunities and achieve sustained growth.

Post by Analytium
May, '24