3 reasons most modernization projects may not deliver business value

Share this post:

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.
  1. 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. Learn more at Think 2019.

Register for Think 2019.

More Hybrid stories

IBM Cloud Owners’ Declaration of Rights: Do you know yours?

Cloud computing companies including IBM are being judged not just by what we can achieve by using data, but by whether we can be trusted with your data. In 2019, the policies and protections that vendors provide for cloud and cloud-enabled technologies, such as artificial intelligence (AI), are such increasingly fundamental issues that it’s helpful […]

Continue reading

Why a modern integration strategy is essential for digital transformation

With customer expectations quickly evolving, enterprises are rushing to digitally transform and adopt cloud and AI capabilities. Companies are looking for ways to innovate faster, create personalized customer experiences, and deliver actionable business insights faster. The key is unlocking the hidden power of data and services. Unlock data and services to power your digital transformation […]

Continue reading

New IBM services help companies manage the new multicloud world

Enterprises are going through a huge transformation in how they operate. Today, according to a recent study, 85 percent of enterprises operate in a multicloud environment. The IBM Institute for Business Value estimates that by 2021, 98 percent of organizations studied plan to adopt multicloud architectures. Navigating multicloud complexity There are no two ways about […]

Continue reading