A survey of 250 software developers and architects in the U.S. found nearly three-quarters of respondents (74%) reported that the average cost of an application modernization project is nearly $1.5 million, with 79% noting that at least one of these projects has failed.
Conducted by Wakefield Research on behalf of vFunction, a provider of a platform that automatically converts monolithic applications into microservices, the survey polled developers and architects at organizations with 5,000 or more employees that have been in business for at least 15 years and are maintaining Java applications. The survey found that the primary reasons application modernization projects failed were expectations not being set correctly (43%) and the need for organizational structural changes (37%).
Despite the cost and inherent risks, however, the survey also found a full 92% of respondents planned to or are currently modernizing applications. Nearly two-thirds (62%) said having the right resources and tools is the key to application modernization success.
Well over half of the respondents (58%) also noted that, on average, it takes 16 months to complete these projects, with more than a quarter (27%) noting it takes two years or more. Not surprisingly, a full 97% said they expected someone in their organization would push back on a proposed project.
Application modernization, of course, is something of a catch-all phrase that can involve everything from providing applications with a web frontend to lifting-and-shifting them into the cloud or completely refactoring them to run natively on a cloud platform.
vFunction CEO Moti Rafalin said that regardless of the scope of the initiative, most organizations should first pick these projects based on what makes the most sense for the business. Once identified, it then becomes critical for IT teams to have a deliberate strategy in place to achieve that goal given the high cost of failure, he added.
Organizations would also be well-advised to determine how job roles will evolve, because one of the biggest inhibitors to application modernization is concern over how any job might be impacted, noted Rafalin.
It’s not clear how quickly organizations are opting to modernize existing applications versus replacing them outright. However, as more organizations opt to run applications in the cloud, the level of interest in using microservices to build applications has risen sharply. The goal is to employ microservices to make applications both more resilient and secure. The tradeoff is that microservices-based applications tend to have lots of dependencies that make them more challenging to manage and secure.
Regardless of approach, it’s more a question of when an application will be modernized or retired versus if. The level of technical debt that accrues over time for each application eventually becomes unsustainable. The issue, of course, is that most organizations don’t have the resources required to modernize every application at once, so it may take a decade or more to work through an entire application portfolio—even as that portfolio continues to grow. In fact, as technologies continue to evolve, it may turn out that application modernization is not a task to be completed as much as it is a permanent state of IT affairs.