Digital innovation and transformation are the most powerful and disruptive forces driving change across all industries. Legacy systems are often slow, difficult to transform, and come with steep maintenance costs. Subsequently, companies end up with multi-layered architecture making it more challenging for maintenance and transformation. Companies that are agile, omnipresent, and available at your fingertips will have a more successful business. This article by Kevin Wolf at Globe News Wire speaks about how legacy systems are stifling digital innovation.
2nd Watch Survey Views on Digital Innovation
According to a global cloud services company, 2nd Watch survey, over 80% of companies run at least one-quarter of their business processing on-premises, bypassing the benefits of the cloud. Based on a response from 100 technology executives, at least 33% believe a lack of skills and expertise hinders their digital transformation journey. Meanwhile, 26% of the respondents claim budget constraints and the rest 25% blame old processes and tools for inhibiting their digital journey.
Challenges of Digitization
Lifting and shifting legacy systems will not be enough to reduce costs and increase business agility. You need to transform old systems to be compatible with the cloud. Here are some enticing facts about the direction of the migration and modernization industry:
Over 79% of the respondents believe legacy tech hinders their digital growth. Despite the challenges and disadvantages of operating legacy systems, 80% of respondents continue at least one-quarter of their business operations on a legacy system. In comparison, 52% confirm carrying out half of their workload on a legacy system.
Cost-saving is an excellent motivator for cloud migration, and many organizations are using multiple cloud services. Reducing technical debt and time to market are significant reasons for adopting cloud operations. Common services that have been shifted to the cloud are databases, CRM and ERP applications, BI/data warehouse/data analytics tools, websites, and web apps.
Furthermore, the author discusses the 2nd Watch’s survey findings regarding skills gaps, limited budgets, outdated tools, cost savings, customer satisfaction, and innovation.
To read the original article, click on https://www.globenewswire.com/news-release/2022/02/08/2380810/0/en/Legacy-Applications-Are-Hindering-Digital-Transformation-Initiatives.html