Application Modernization Services Market Forecasts Healthy Growth by 2025
Businesses world over are increasingly acknowledging the constraining effect of legacy applications and platforms on their agility and growth. Enterprises from a wide range of industries seek better modernizations options for migrating their legacy systems or remediating them to address these constraints and add value to their business. This is the primary factor propelling the demand for application modernization services in various developing and developed regions. These options may be centered on re-platforming, re-hosting, rearchitecting, or re-engineering these applications, with better interoperability of the system. The adoption of these services result in enhancing flexibility, lowering risk, minimizing costs, with the overall aim in boosting the operational improvements, thereby enhancing the competitiveness of application environments.
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Global Application Modernization Services Market: Key Trends
The pressing need for improving the business agility among a growing number of enterprises is a key factor stoking the demand for application modernization services. The rising demand for improving time-to-market of these technologies is a notable factor boosting the market. The marked demand for services that make changes to application architecture that tend to facilitate the migration without causing any disruption, while reducing costs, is a defining factor significantly bolster the adoption. The burgeoning deployment of cloud computing solutions and the rising ubiquity of big data technologies among forward-looking enterprises are prominent factors expected to pave way for the growth of the application modernization services market. Since application modernization is a time-consuming process, coupled with the paucity of technical expertise to tide over operational complexities, the market is likely to witness roadblocks in the coming years if these issues are not addressed.
Global Application Modernization Services Market: Market Potential
The application modernization services market is witnessing marked shift from one-size-fits-all cloud platforms to tailor-made solutions for enterprises. The presence of legacy systems, largely characterized by hyperscale cloud, hinders the modernizing of application functionalities for enterprises. This calls for solutions that will do away with unnecessary complexity for migrating to modern IT workloads on cloud.
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Skytap, Inc., a U.S.-based globally prominent cloud provider, on November, 2017 announced the unveiling of support services for IBM's AIX operating system on Skytap Cloud and IBM Cloud for Skytap Solutions (ICSS), which will help enterprise clients deploy cloud solutions faster and facilitate their modernization of their core business services. These solutions will offer support on public cloud model for AIX, Windows, and Linux, with the support for the last one scheduled to be offered on IBM Power Systems in the first half of the next year. The offering is a key outcome of the strategic collaboration between the Seattle-based cloud computing company and IBM. One of the recent development is the adoption of modernization service by Skytap’s client Blueworx. The company is leveraging on the potential of Skytap Cloud in modernizing its AIX-based applications, which will help it take customer services to the next level.
In the coming years, a number of enterprise clients world over will use the services to bring innovation in customer experiences.
Global Application Modernization Services Market: Regional Outlook
Geographically, North America is one of the most attractive markets and is expected to hold substantial shares of the global market over the forecast period. The prominence of the regional market is attributed to a large number of early adopters and the launch of advanced product offerings in several countries. Meanwhile, Asia Pacific is expected to rise at a prominence pace in the coming years. The growth will be fueled by the accelerated adoption of cloud services and the vastly rising spending on modernizing enterprise infrastructure.
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Global Application Modernization Services: Competitive Analysis
A number of players are focused on capitalizing on untapped opportunities in emerging markets, mostly aiming for SMEs, in order to consolidate their shares. Several top players are entering into partnerships and collaborations to launch innovative product offerings, in a move to stay ahead of the pack. Key players operating in the application modernization services market include Oracle Corporation, Atos, Tech Mahindra, IBM, Cognizant, Accenture, and Capgemini SE.
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