3 reasons most modernization projects may not deliver business value

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3 reasons modernizationGlobal enterprises all face a similar issue: how to merge the value of existing assets, including infrastructure, applications, workloads and data, with new cloud-native efforts that enable greater speed to innovation and scaling for competitive advantage. It doesn’t happen overnight. It’s a journey that sometimes presents a new set of challenges.

The unfulfilled promise

Our experiences with clients at IBM has repeatedly shown that business transformation models designed to “lift and shift everything to cloud and sort it out later” can result in massive and unexpected costs for complex workloads, sometimes as much as five times what was projected.

Developing new apps and tapping into software as a service (SaaS) from more vendors has created new tech silos, making it difficult to manage security, compliance and resiliency, as well as govern across vendors and clouds.

What’s preventing transformation projects from delivering measurable business value?

  1. Projects don’t always equal progress.
    The policy of “rip, rewrite and replace” may result in new risk. Even though there’s tremendous value to be harvested from existing assets, some vendors and consultants are advising organizations to rip and replace to transform, often choosing to rewrite existing assets from scratch instead of modernizing them. This can be disruptive and costly because the business must continue to run during the massive overhaul. There is great value in developing new, cloud-native apps, but it doesn’t provide the answer for all applications.
  1. Cloud is no silver bullet.
    Most organizations operate in a hybrid environment. Some apps can live on a public or private cloud, but some mission-critical apps may remain in an on-premises environment where they undergo modernization to integrate with cloud-native apps. Additionally, organizations don’t have just one cloud or dataset to contend with, but multiple, fit-for-purpose cloud offerings. They often underestimate the complexity, manual processes and governance and compliance risks that can come with managing many clouds.
  2. Lack of controls and governance.
    When siloed development and project teams work outside the oversight of a governed environment, duplication of effort and resources drive up costs. The transfer and use of massive amounts of data can introduce security and compliance threats. Faulty data used to train artificial intelligence (AI) models can put projects, reputations and businesses at risk.

The new wave of modernization

Instead of thinking about environments as two distinct worlds in your transformation journey — “the old world” and the shiny “new world”— to be managed separately, it’s critical to manage existing assets and new assets as one environment to propel business forward.

Continue reading to learn how one company is succeeding in its cloud transformation journey.

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