What are the Application Modernization Trends?
Application modernization is the task of overhauling old software systems, known as legacy applications, to make them congruent with the current business’s requirements, technological standards, and user expectations. It involves reshaping the application architecture, migrating to the cloud, adopting a microservices approach, following DevOps guidelines, updating security measures, and improving the user experience.
In recent years, application modernization has become a top priority for businesses undergoing digital transformation. Legacy systems often limit scalability, slow down innovation, and drive up maintenance costs. In a competitive and rapidly evolving market, modernizing applications isn’t just an option—it’s a necessity.
Application modernization trends portray the most recent and vital methods that businesses are engaging in to remain flexible, cut down on expenses, and enhance performance. These trends enable companies to:
make their IT infrastructure more efficient,
minimize time-to-market for new features,
enhance reliability and security,
and provide a positive customer experience.
The article looks at the major trends that will define the future of application modernization, why this is the right time to act, how to initially start the process, and how Evinent can lead you on your path to modernization.
Why Modernize Now?
In the present-day high-speed digital economy, the need to transform your applications is not about the future now, it is your instant duty to your business. Companies are pushed to the wall to become as agile, scalable, and innovative as they have never been before. If you postpone modernization, you place yourself in a situation where you are not only affected by the hidden costs of outdated technology, but also you might be left out or become uncompetitive.
Application modernization remains a critical priority for enterprises as they continue their journey to the cloud and beyond.” (Forrester Wave: Application Modernization and Multicloud Managed Services, Q1 2025)
Market Pressure and Competitive Demands
Digital-first businesses are introducing new benchmarks in terms of velocity, creativity, and client experience. Or else companies that still adhere to conventional methodologies can definitely be left behind in the dog-eat-dog business world. If we talk about the indications of the rapid response or the fast delivery of technology, companies that are competitors and are developing applications from the cloud have the capability of doing it weekly or even daily, while on the other hand, the companies whose operations are primarily from legacy systems do not have such a possibility.
The Problem with Legacy Systems
Old systems are mostly based on monolithic architectures, obsolete programming languages, and unsupported platforms. Such applications not only become more difficult to manage but also constrain the scaling, interoperation with modern systems, or reaction to threats to the security of an organization. Furthermore, legacy systems usually have inadequate documentation and are firmly connected with a particular infrastructure. Consequently, changes are both slow and dangerous to be realized.
Rising Maintenance Costs
First off, an older system will cost more to run than a newer model. That's because a variety of things are involved, such as infrastructure, licensing, specialized support staff, and emergency fixes. Such applications, which are from the past, can suck up resources from IT budgets on the sly. That can be avoided if the money that can be spent on innovation and growth is kept free from such costs. The new systems are far more efficient, scalable, and will save money in the long run.
Real Business Impact
Modernizing applications has direct, measurable benefits for the business. For example:
Faster time-to-market through agile and DevOps practices.
Improved customer satisfaction through better performance and UX.
Enhanced security by adopting up-to-date platforms and compliance standards.
Lower operational costs by retiring outdated infrastructure.
By starting modernization now, companies position themselves to innovate faster, serve customers better, and compete more effectively in a digital-first world.
4 Common Challenges in Application Modernization
Application modernization can result in exceptional returns, however, it is seldom an uncomplicated journey. A host of obstacles encountered by a wide range of organizations is the reason for a decrease in the speed of work or, even worse, the termination of their provision of services without the right treatment
1. Resistance to Change
One of the most overlooked problems is the cultural factor. The employees must be very resistant to changes in the new processes or tools, which become particularly relevant when they have been using their legacy systems for years. If it is not clear in terms of communication, training, and stakeholder alignment, internal resistance will significantly inhibit progress.
2. Complex Data Migration
Many of the older systems store information in old-fashioned ways or excessive databases, which means that migration becomes a hazardous process. Unprofessional data transfer may result in the wrong kind of integrity, intellectual property law breach, and/or system outages, especially in fields with rigorous rules such as finance and healthcare.
3. Downtime and Disruption Risks
Migrating from one system to another rarely goes without a hitch. While replatforming, refactoring, or rebuilding is the thing to do, the systems can be unavailable or unstable, and this is something that directly impacts the users and the business. In case the rollback or recovery plan is not in place, the hazard can be of high gravity.
4. Technology and Architecture Misalignment
Choosing the improper modernization strategy, be it a rebuild, lift-and-shift, or hybrid, may bring about the loss of resources or increased technical debt. The absence of architectural planning, as well as a mismatch between the business goals and the chosen tools, commonly results in problems with scalability or performance afterward.
Modernization is not just a technical upgrade—it's an organizational shift. The challenges it brings are real, but not insurmountable. With the right planning, cross-functional collaboration, and a clear understanding of risks, businesses can overcome the hurdles and pave the way for sustainable digital transformation.
Top 10 Application Modernization Trends
The progress of the modernization of applications has been very fast over the last few years, especially within businesses that are desirous of making their IT resources more in line with their strategies. The time of the year 2025 is here, and several very strong tendencies that are the driving force behind the way companies are rethinking their old systems and digital infrastructure have emerged. The emerging application modernization and migration trends are not only the result of the technical, but they are also transformational in the sense that they represent the business model that the company uses to create and deliver value in the software world.
1. Cloud-Native Architectures
The move to cloud-native architecture—using microservices, containers like Docker, and orchestration tools such as Kubernetes—is reshaping how companies build scalable, flexible applications. According to the CNCF’s 2024 Annual Survey, Kubernetes usage grew by 48%, highlighting the accelerating shift toward cloud-native models. These systems support faster delivery, better scalability, and lower maintenance costs by decoupling applications from traditional infrastructure.
2. API-First Development
An API-first approach signifies that applications are developed with integration as the foremost goal, which makes it easier to link up with mobile apps, third-party services, and partner platforms. This modular design allows for increased flexibility and faster development. Along with the companies seeking to renovate their legacy systems, APIs open the door to new business models and simplify the interlinking of ecosystems.
3. AI and Generative AI as Modernization Accelerators
One of the major modernisation initiatives that requires AI is Artificial Intelligence itself, which, in fact, has become a critical enabler of such initiatives. In a survey conducted by Statista in 2023, it was observed that around 90% of enterprises think AI is a must-have tool for their modernization plan. The use of AI has enabled people to accomplish tasks that were previously done with the help of various machines, such as automated code refactoring and intelligent test generation. Now, this is done as much as half the time, and also at a significantly reduced cost.
4. Explosive Growth in Modernization Services Market
The worldwide application modernization services market is growing at a fast pace. Research from Globenewswire foresees it to be $40.2 billion by 2030, which means it will rise by a CAGR of 17.4% over the 2023-2030 period. Such a need is the sign that corporations are eager to phase out their obsolete infrastructures, cut down on the cost of managing their IT resources, and embrace digital-first business strategies.
5. Mainframe Modernization Moves Center Stage
While cloud adoption keeps increasing, mainframes are still deeply entrenched in the vital industries, such as banking, insurance, and healthcare. Instead of a complete replacement, corporations are using the hybrid method, which includes: exposing API-based core logic, selectively migrating workloads, or leveraging AI for legacy code rewriting. This hybrid modernization is a perfect balance of innovation and stability.
6. DevSecOps and Full-Cycle Automation
The security and automation have become inseparable parts of the modernization process. As Forbes observed in 2023, enterprises are integrating security “shift-left” into development activities while employing AI-driven testing to uncover vulnerabilities at earlier stages. The automated CI/CD processes, together with the observability tools, result in higher reliability, compliance, and speed to market.
7. Mainframe Modernization
Modernizing mainframe-based applications is a growing priority for enterprises with long-standing systems. Instead of replacing entire mainframes, companies are increasingly adopting hybrid strategies—exposing legacy functions via APIs, migrating selective workloads to the cloud, or using emulators to reduce dependency on outdated infrastructure. This makes it possible to modernize gradually while preserving core business logic and stability.
8. Event-Driven Architecture (EDA)
Event-driven architecture is becoming increasingly popular amongst organizations that are transitioning to real-time responses. EDA is a model that is built upon the idea of events (such as user actions, system updates, or external triggers) for starting the corresponding workflows and processes, instead of being dependent on the traditional synchronous request/response models. This allows for the easier scaling of services, decoupling of services, and enables real-time analytics and automation to be implemented, which is particularly beneficial in e-commerce, IoT, and financial systems.
9. Serverless Computing
Serverless platforms allow developers to execute code without handling infrastructure. Services such as AWS Lambda, Azure Functions, and Google Cloud Functions take care of auto-scaling, availability, and maintenance, thus letting the teams concentrate solely on the functionality. Serverless is the perfect fit for microservices, APIs, and event-driven workloads—and it is also massively picked for efficiency and speed gain in modernization strategies.
9. Serverless and Function-as-a-Service (FaaS)
As serverless computing is still going strong, companies are deciding to give away the management of the infrastructure. According to Statista, 26% of organizations are already using or experimenting with FaaS platforms like AWS Lambda or Azure Functions. Serverless is just the right tool for API backends, event-driven workloads, and bursty processing tasks, as it provides both scalability and cost efficiency.
10. Sustainable IT and Green Cloud
Modernization is not only about performance—it’s also about sustainability. Enterprises are prioritizing energy efficiency and carbon reduction in IT operations. Companies that optimize cloud workloads can cut energy usage by up to 30%, while also reducing costs. This “green cloud” approach is becoming a board-level priority as ESG regulations tighten.
These apps and data modernization trends indicate a serious need for application modernization in the present digital world. Enterprises that take the right steps to respond to such trends are thus enabled to speed up their innovation, improve the customer journey, and keep their competitive advantage. At Evinent, our modernization teams combine deep expertise in legacy system transformation with hands-on experience in cloud-native, microservices, and DevOps. This ensures that even the most complex migrations are executed without disrupting business continuity.
Modernization Trends in Action: Real-World Examples
One is to understand modernization trends, but the next step is to observe them to really feel their impact. The modern-day companies from different sectors are adopting technologies such as microservices, cloud-native architectures, DevOps, serverless, and AI-driven automation, with the aim of modernizing their legacy systems. These practical examples are showing how the newest trends can result in quicker innovation, enhanced scalability, and improved customer experiences.
Microsoft UI Modernization
Microsoft has modernized its interfaces across products like Microsoft 365, Copilot, and Designer by streamlining visual elements, reducing clutter, and emphasizing AI-driven guidance. Even general comparisons illustrate a shift toward cleaner, more intuitive, and adaptive designs that enhance overall usability. (Microsoft Fluent Design System)
Netflix – Microservices & Cloud-Native
Netflix transitioned its whole IT setup to AWS and went on with microservices in order to be able to scale on a global level. This allowed practically no downtime and daily deployments in the thousands. (AWS Netflix Case Study)
Capital One – Cloud & DevOps Transformation
The first major U.S. bank that was entirely on AWS was Capital One, which has recently gone "all-in". They have transformed their apps with DevOps methodologies and as a result, they have cut down the time for the development environment provisioning from 3 months to a few minutes. (AWS Capital One Case Study)
Domino’s Pizza – API-First & Digital Channels
Domino's has overhauled the technical infrastructure of its API-first architecture to support its mobile applications, voice assistants, and car dashboards. Currently, more than 70% of U.S. sales are made through digital channels. (CDO magazine about Domino’s Digital Transformation)
Airbnb – Serverless & Event-Driven
In some segments of their search and booking process, Airbnb decided to use serverless computing and AWS Lambda, hence their capability of elastic scaling during high seasons for travel. (Amazon AWS Airbnb Case)
These modernization examples reveal that the trends are not something the businesses can only see in theory—they bring quantifiable business value if used in the right way. Companies engaging with these methods are beyond the mere technology change; they are changing function, increasing speed, and reaching the market advantage. The others can learn what to expect from these cases, prioritize the trends that are suitable for them, and create a powerful plan of modernization initiatives.
How to Start Modernizing Your Applications
Upgradation of aged applications can be an intimidating process; nevertheless, by elaborating a clear, step-by-step approach, institutions can not only mitigate risks but also achieve the highest impact. If you're revamping for better performance, lower technical debt, or to be in a better position to align with your business goals, a well-thought-out plan as the initial step is a must. How you can carry out application modernization strategically is as follows:
1. Assess Your Current State
Start by assessing your current application portfolio. Recognize systems that are not in use for a long time, are no longer efficient, or do not support the business as they should. This process had better consist of examinations in two spheres: technical aspects (infrastructure, inter-dependencies, scalability) and the enterprise layer (the cost, the user experience, and the legal side). What you need to do with this first move is to recognize what is to be changed and for what valid reason.
2. Define and Prioritize Goals
It's true that old applications don't have to be upgraded all at the same time. Decide which systems are most essential to your operations or have the highest risks. To determine which systems to upgrade first, factors such as their business impact, ease of modernization, and their alignment with your strategic objectives come into play. A few of the applications need an entire reconstruction, whereas several can be positively impacted by quick refactoring or replatforming.
3. Choose the Right Team or Partner
If you want to modernize successfully, you should know cloud architecture, DevOps, security, and legacy systems. Should you lack these competencies internally, you may want to think about hiring a professional software modernization provider. An ideal partner is not only tech-savvy but also understands business goals and industry context.
4. Launch a Pilot Project
Start by taking a small and manageable step. Pick just one application or service so that you can be the pilot of your modernization strategy. This not only helps the team to verify the assumptions but also to blend workflows and create momentum without causing any disturbance to the key operations. The positivity of the initial success can play a substantial part in securing the support of a wider group of those interested and, indeed, pave the way for large-scale transformation.
5. Plan for a Gradual Transition
Modernization is not a one-time event, but in point of fact, it is a complete process. Start moving towards a completely new digitalized system that makes it easier to modernize the systems step by step. Adopting modernization through the strangler pattern to replace the legacy components with the new ones over a period of time is an excellent risk and downtime reduction strategy.
Modernizing applications is very important if you want to keep pace with the competition, at the same time, reduce costs, and be more agile in the digital environment of today. The first step is to create a comprehensible plan, which is based on the thorough complexity evaluation, wise assignment of priorities, and professional backup—a necessary prerequisite for the sustainable development of your business. A step-by-step and purposeful modernization process is a way not only to receive improved application systems but also to get other potential advantages for your business.
Summary Checklist for Starting Application Modernization
Assess your current application portfolio — identify outdated, inefficient, or high-risk systems.
Define and prioritize goals — decide which apps to modernize first based on business impact.
Assemble the right team or partner — ensure expertise in cloud, DevOps, legacy systems, and security.
Run a pilot project — test modernization on a small scope before scaling.
Adopt a gradual transition strategy — use the strangler pattern or phased migration to minimize risks.
Align modernization with business objectives — make sure every technical step drives measurable business value.
Measuring Success in Application Modernization
Countless organizations start up modernization ventures without any clear measures to gauge the level of their success. It is very important to set and follow the correct Key Performance Indicators (KPIs) in order to measure the influence and to give directions for future activities. A KPI (Key Performance Indicator) breakdown is provided below that covers a variety of areas.
KPI Category | Key Metrics | Example Impact |
|---|---|---|
Technical | System Uptime, MTTR, Deployment Frequency, Defect Rate | Improved system reliability and faster recovery times |
Business | Time-to-Market, Customer Satisfaction (NPS, CSAT), Operational Cost Savings | Accelerated product delivery and enhanced customer experience |
Financial | ROI of Modernization, IT Budget Allocation (Maintenance vs. Innovation) | Optimized resource allocation and increased profitability |
Security | Number of Vulnerabilities Reduced, Compliance Audit Success Rate | Strengthened security posture and regulatory compliance |
McKinsey reports that companies successfully modernizing key applications reduce IT operating costs by 20–30% on average. (McKinsey – Modernize Card Tech with Nextgen Issuer Processing)
Forrester notes that modernization accelerates the release of new digital products by 40–60%. (Forrester – Application Modernization and Multicloud Managed Services Q1 2025)
To really comprehend the benefit of a firm to modernize its applications, figuring out the extent of the said modernization is a must. Corporations can assess the enhancement of system performance, operational efficiency, time-to-market, and user satisfaction by monitoring technical, business, financial, and security KPIs. Transparent figures provide modernization with a significant role, not just the upgrade of the technical aspect but also as a strategic move leading organizations to digital operations which are more effective, sustainable, and future-ready.
How Evinent can help with application modernization
Using the full extent of our knowledge at Evinent, we are experts in converting the old systems into digital platforms of the future, which best fit your company's needs and priorities for growth. No matter whether you are in healthcare, e-commerce, retail, HR tech, or manufacturing, our skills are highly versatile and can solve your problem with the legacy systems without causing a hiatus for your whole business.
Why Choose Evinent?
20+ successful legacy projects delivered
11+ years of experience in legacy system modernization
99% client satisfaction rate
Up to 35% reduction in infrastructure costs
Evinent collaborated with an electronics and household appliances retailer which is among the top five largest in Kazakhstan, in order to give a new look to their e-commerce platform. The project has yielded the following results in a period of more than 10 years with a team of 15 developers and QA specialists:
Real-time inventory and pricing updates across thousands of products.
AI-driven personalization and recommendations to enhance customer experience.
Multiple payment options, including real-time credit comparisons from banks.
Optimized architecture for high traffic during peak sales events, ensuring high uptime.
Infrastructure cost savings through cloud-based, scalable backend.
Impact:
Increased sales volume and improved checkout efficiency.
Expanded market reach across Kazakhstan and into Kyrgyzstan.
Better business insights via advanced analytics and reporting.
Future-ready platform capable of handling growing traffic and operational demands.
This project illustrates the power of modernization from the aspects of architecture, automation, and user-focused design to bring not only technical but also business results that can be measured.
Our Approach
At Evinent, we take a step-by-step modernization approach designed to minimize risk and ensure long-term success. Our method ensures continuity, security, and clear business alignment at every stage.
1. Audit & Assessment
The starting point is an in-depth study of your old systems, equipment, and business procedures. The primary task of our group is to detect old parts, problems that slow down work, and possible dangers. In such a phase, performance testing, security checks, and the checking of the architectural solution are performed--which is, in fact, creating a preliminary data-driven modernization plan.
2. Strategic Planning
From the assessment results, we identify clear goals and a specialized modernization plan. Whether it’s a shift to the cloud, rewriting code, or breaking down monoliths, we together make a schedule that not only reflects your business objectives but also your projected timelines.
3. Modular Execution
Our approach to changes is gradual so as not to interrupt the service. We update separate elements (like the database, interfaces, or some modules), and in this way, your business can still carry on with good performance when we are making the improvements.
4. Secure Data Migration
Evinent technologies guarantee an even passage of data from your old set-up to modern platforms. We process, verify, and improve your datasets to stay away from any errors or mismatches. The data is always available without interruptions, and stringent safety precautions make sure that your data is not only secure but also accessible to you.
5. Post-Migration Support
Following the deployment, we make sure to provide ongoing assistance to keep track of the system's performance, tackle any technical problems, and give your team the necessary support to get used to the new environment. We will be trying to achieve three things, namely stable operations, full adoption, and continuous improvements.
Our Services Include:
Legacy Application Redesign
Transition monolithic systems into scalable, modular applications.
Code Modernization & Refactoring
Upgrade legacy codebases for improved security, performance, and maintainability.
Database & Infrastructure Optimization
Modernize legacy databases and migrate infrastructure for cost efficiency and scalability.
Cloud Migration & Optimization
Move to AWS, Azure, or Google Cloud—with ongoing performance tuning.
Process Automation & DevOps Integration
Streamline development workflows and introduce intelligent automation.
Industry Expertise
We’ve modernized systems for clients across:
Healthcare – EHR systems, telemedicine apps, patient portals
Retail – POS systems, inventory platforms, real-time analytics
E-commerce – Scalable storefronts, secure transactions, customer experience
HR Tech – Custom LMS and employee management platforms
Manufacturing – Supply chain automation, predictive maintenance, smart analytics
At Evinent, we comprehend that the change doesn't refer only to the rewriting of the code, but is the process of redefining how one's technology supports their business goals. We have had an experience of more than 11 years, completed more than 20 successful modernization projects, and have a 99% client satisfaction rate, which allowed us to not only make the technical upgrades but also achieve strategic advantages.
We can take you from seamless data migration and cost-effective cloud transitions to scalable architectures, and intelligent automation - we are a foundation of your future, an element for reducing operational overhead, a continuous source of innovation.
Key Takeaways
Modernization should be implemented as a major priority and is a must-have rather than a nice-to-have. Besides being a hidden source of extra costs for the company, legacy systems also pose as obstacles to business growth. Organizations which are still heavily dependent on these systems are those that are in danger of outpaced by competitors who have made themselves more agile and innovative.
The benefits of the winning strategies are evident. Rather than just being experimental, cloud-native, microservices, DevOps, AI automation, and API-first strategies have already become the leading factors of business transformation.
Untying the "Yes" knot with a business case is what happens when the organizations decide to modernize. According to McKinsey and Forrester, such organizations re mainly capable of reducing IT costs by 30%, accelerating product launches by 40–60%, and increasing customer satisfaction substantially.
Only the daring will survive. Being the basis of online competitiveness, modernization is the difference between those that will be market leaders and those that will be disrupted.
Final thought: Modernization is definitely not just about technology — it is about making sure that your company will still be there tomorrow.
Frequently Asked Questions (FAQ)
1. What is application modernization?
Application modernization refers to the upgrading of old applications to take advantage of current technologies like cloud, microservices, APIs, and AI. Besides, it aims to increase the capacity, the quality of service, safety, and even business flexibility.
2. Why can’t businesses just keep using legacy systems?
Legacy systems might be able to continue "functioning" to a certain extent; however, they consume a large part of IT budgets, hold back the innovation process, pose security threats, and are not able to satisfy the latest customer requirements. If we consider a longer period, the amount spent on their maintenance will be higher than that used for their modernization.
3. How do I know if my company needs modernization?
Warning symptoms comprise: regular downtime, extended release cycles, soaring IT maintenance costs, trouble with the integration of new tools, and bad customer experience as compared to competitors.
4. What are the most effective modernization strategies?
The most common approaches include cloud migration, adopting microservices, containerization, DevOps automation, API-first development, and AI-driven process optimization.
5. How do we measure the success of modernization?
KPIs include system uptime, deployment frequency, time-to-market, customer satisfaction (NPS/CSAT), IT cost savings, and ROI. Successful modernization should deliver both technical and business improvements.
6. How risky is modernization?
Like any major transformation, modernization carries risks (e.g., downtime, migration complexity). However, with a phased approach, proper change management, and experienced partners, risks can be minimized.
