Paving the Way to Enterprise Modernization
06 Nov 2006
Understand the Bottom-Line Benefits by Taking Action Now...
The imperative for enterprise modernization is simple: It comes down to common-sense economics. Familiar legacy systems have been the foundation for many businesses for decades, so it's easy to ignore the compelling economics of the non-proprietary alternatives. But, in fact, these alternatives not only offer strategic benefits and immediate tactical pluses – they are also almost invariably less expensive. In short, the ability to seize a compelling ROI is often just a decision cycle away.
Maintaining legacy systems is expensive. First you have the built-in cost of proprietary technology. Add to that the labor overhead of maintaining and updating hand-built code and patchwork systems. But the bigger issue is that spending on legacy systems means not only throwing away money that could be better invested in more flexible and powerful IT solutions, but also – more importantly – tying your business to the fixed and outmoded operational styles of years past.
However, there are options. You don't have to stay where you are. You can break free and move ahead with the help of an innovative modernization services offering from EDS that takes advantage of Intel processor-based, industry-standard servers from Fujitsu and Oracle software solutions.
There is no one best way to modernize. The process begins with an assessment and review of existing applications with an eye toward long-term goals and thinking about what can be migrated and what should be migrated. Your partners in modernization should be able to attune themselves to your business and be open to finding a solution that matches your needs. EDS – with its global experience – is ideally positioned in this regard, with many means of delivering modernization and the skills to help you assess and balance the value of various methods. Indeed, while the migrations that are core to modernization were once viewed as risk-prone, the tools, techniques and well-honed best practices that EDS provides – as well as the power of Fujitsu hardware and Oracle software, which are the chosen tools for these migrations – now make this a predictable process.
This process, which can often be relatively noninvasive, produces a more agile, flexible infrastructure.
If you have been hesitant about initiating a legacy modernization program, this may be the perfect time to act. The cost has never been lower, and the risks never fewer.
A Healthier Bottom Line
Of course, changing the status quo is never easy. Companies are besieged by tactical concerns such as demands to lower the cost of a particular application or to support a new business initiative. These day-to-day concerns often threaten a company's ability to act strategically. Fortunately, modernization delivers clear and rapid ROI, making it a compelling choice.
While the exact results are dependent upon the software language, number of lines of code, complexity of applications, and amount of processing being done, payback periods average from 6 to 12 months, making the argument in favor of exploring modernization undeniable. In fact, the experience of EDS clients has demonstrated that simply re-architecting a Cobol application to a more modern SOA software infrastructure based on Oracle Fusion Middleware can often reduce the number of lines of code being managed by 50 to 70 percent. The overall impact of a change of this magnitude to the business is compelling.
Furthermore, enhanced features and greater functionality are delivered by driving new ergonomic interfaces, real-time data access, seamless Web capability and mobility access, all while preserving the application's business logic. Real cost savings can be achieved and can range between 35 and 60 percent over a three-year period. These savings are generated through lower maintenance costs for COTS software, reduced application development costs and significantly lower operating costs. And the reliability, availability and serviceability of the system remain the same.
Organizations that have modernized have found themselves better equipped to handle crises and meet new challenges. Most of all, modernization means they can move faster to seize marketplace opportunities.
The bottom line is that, with modernization, IT organizations can reclaim their ability to function as change agents and as a source of business leadership and competitive advantage. Determining the impact of modernization on your organization is worthwhile because – in addition to delivering benefits to your organization – it can potentially reduce your management challenges. And that is perhaps the most compelling argument for modernization.