Modernization as a Service (MaaS) vs Traditional Application Modernization

 Yesterday while reading something on Application Modernization Trends one term I really found interesting is Modernization as a Service Offering – Though this term was coined 5 years back as a subset of Enterprise /IT Modernization, but surprisingly very limited organization (Enterprise and IT services) aligned with the concept of Modernization as a Service Offering.

In the digital age, maintaining competitive advantage means staying on top of the latest technological trends. Application modernization plays a critical role in this, turning outdated, inefficient systems into modern, powerful tools that can drive a business's success. The traditional application modernization process is generally project-based and often treated as a one-time event. It usually involves the re-hosting, re-platforming, refactoring, re-architecting, rebuilding, or replacing of legacy applications to align them with current business needs and technology.

While traditional modernization offers several benefits, it has following drawbacks which MaaS could resolve.

  • Large Upfront Investment: Significant resources, including time, money, and people, are needed to carry out the modernization project.
  • Operational Disruption: Modernizing an application can be disruptive to business operations, especially if significant changes are required.
  • Risk of Obsolescence: The pace of technological change means that by the time a modernization project is completed, some aspects of the technology may already be outdated.

With little research and brainstorming on how a typical Modernization as a Service Offering is different than traditional modernization services, I thought of crafting the below table.

 

Traditional Application Modernization

Modernization as a Service (MaaS)

Approach

One-time, project-based

Ongoing, service-based - Regular audits and assessments to identify opportunities for improvement and modernization in your applications and  infrastructure.

Frequency of Updates

Infrequent, major changes

Regular, smaller updates - Instead of a 'big bang' approach, changes are made in small, manageable iterations. This allows for continuous improvement while minimizing disruptions.

Scalability

Limited by project scope

Flexible, can be scaled up or down - Services can be scaled up or down based on business needs, ensuring not paying for more than what you need.

Cost Structure

Large upfront investment

Predictable: With a service-based model, you pay a predictable monthly or annual fee, making it easier to budget for modernization efforts

Disruption

Can be disruptive due to large changes

Minimal, due to smaller, regular changes

Risk Management

Risky, large changes have higher impact

Less risky, Continuous modernization can help identify and address issues early, before they turn into bigger problems.

Future-Proofing

Risk of obsolescence due to rapid technology changes

Regular updates keep systems current

Operational Efficiency

Enhanced after project completion

Repeatedly

It's important to remember that both have their places and uses, and the best choice depends on an organization's specific needs, resources, and strategic objectives.

While it is an emerging trend, it needs to fit on the overall delivery landscape from a Service Provider standpoint. I will try to write something on how MaaS could have an innovative agile delivery team to gain the benefits along with key roles on my next blog.


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