App Modernization

APP MODERNIZATION
Modernize Legacy Systems
Adam Aditya Nugraha
Cloud Technical Specialist – IBM Hybrid Cloud

2
“
True Cost Of Legacy Systems
IBM Cloud / June 2019 / © 2019 IBM Corporation
Over time, the true cost of legacy systems is
enormous: from additional resources needed to
maintain them, to lost productivity, they can hinder
investments in long-term growth. In highly regulated
industries, they can even be a financial
liability. Health Insurance Portability and
Accountability Act (HIPAA) violations in 2018
resulted in over $28 million in fines, many of them
due to data breaches. As legacy systems grow older,
it's easy to miss critical security patches (if any
are even available), making your system more
vulnerable to malicious actors ready to use old Java
and SSL exploits to expose your network.
- Gitlab
IBM Institute for Business Value

3
“
True Cost Of Legacy Systems
Even if we can all agree that legacy system
modernization is important, it still takes
work. Analysis paralysis is a real
phenomenon in the digital transformation
journey. Ripping off the band-aid and
committing to faster deployment feels
overwhelming, and there are so many
application modernization trends to consider.
But not taking action puts a ceiling on growth.
- Gitlab
Source: https://newsroom.ibm.com/2018-10-15-IBM-Unveils-Worlds-First-Multicloud-Management-Technology

4
“
Status quo < Innovation
Many large enterprises feel tied down to current practices
because there just aren't enough resources left to innovate
once legacy systems are maintained. For example, the
greater part of the IT-related federal budget of the United
States ($80 billion) goes to maintaining legacy systems.
When large companies can only devote 20 percent of their
budget to software modernization, things move even more
slowly. Obsolete systems create a vicious cycle where
enterprises feel they have to choose between innovation or
keeping things running.
Instead of focusing on a full rip-and-replace of legacy
systems, an application modernization strategy that identifies
specific challenges reduces potential disruptions. Making
goals and achieving them one step at a time can make a big
impact.
Source: https://newsroom.ibm.com/2018-10-15-IBM-Unveils-Worlds-First-Multicloud-Management-Technology

The government has been
reporting that 75 to 80 percent
of the federal IT budget is
spent on running legacy (or
existing) systems.That may
sound alarming to those who
aren’t familiar with the inner-
workings of a large IT
organization.
75 to 80 %
Source: IBM IBV Study – Assembling your cloud orchestra

Prologue
Dining at a fancy restaurant, you want to spend some quality
time, enjoying tasty food and drinks. When choosing the
latter, the chances are, you will prefer a glass of good wine,
the older the better. For that matter, we all know old wine
and old friends are the best. The problem is, unlike wine and
friends, software doesn’t get better with age.
Just think about it. There is a good reason your new
computer runs Windows 10 instead of Windows XP.
Obviously, your current computer is more powerful and more
capable than the one you owned 10 years ago. Similarly, the
business you run is not the same as it was when you started
it. Therefore, using outdated and underperforming software
to manage it is analogous to running Windows XP on your
new ZenBook.
What is Legacy Systems?
As defined by Gartner, legacy application is “an information
system that may be based on outdated technologies, but
is critical to day-to-day operations.”
A number of examples of such legacy systems can be found
across some major federal organizations.
Flexera in their Product EOL/EOS 2018 Report found that
the majority of products have a five-year lifecycle.

Legacy Systems Continues
However, a legacy system is not always defined by
its age. It might be due to the lack of support or its
inability to meet the needs of a business or
organization that a system is considered to be
legacy. Such software is usually difficult (or
impossible) to maintain, support, improve, or
integrate with the new systems due to its
architecture, underlying technology, or design.
That said, among the CIOs surveyed by Logicalis
Global CIO, 43 percent consider complex legacy
technology a significant barrier to digital
transformation.

“If you need to modernize legacy applications,
the best approach depends on the problem
you’re trying to solve.”
“Replacement isn’t the only option
“Application modernization is not one ‘thing,’.
“If you’re faced with a legacy challenge, the
best approach depends on the problem you’re
trying to solve. Replacement isn’t the only
option.”
Stefan van der Zijden – Research Director
at Gartner
“Gartner predicts that every dollar invested in digital
business innovation through to the end of 2020 will require
enterprises to spend at least three times that to continuously
modernize the legacy application portfolio.
Spending that money effectively will require application leaders to
carefully select one of the seven different modernization
approaches.”

Hidden Cost Of Legacy Software
Many companies continue using outdated systems, regardless of the age or
quality of the underlying technologies. The software has been working just fine
for decades and is still able to cope with most of its tasks, they argue. Indeed,
why fix it if it ain’t broke?
Actually, there are quite a lot of reasons to “fix” your legacy systems. The real
cost of running such software is the major one among them.
According to estimates, the US Federal government plans to spend more than
80 percent of the IT budget on Operations and Maintenance. This spending
mainly includes aging legacy systems, which pose efficiency, cybersecurity, and
mission risk issues. To put that into context, only 20 percent of the IT
funding was assigned to Development, Modernization, and Enhancement
in 2018.[3]
“Yet, these numbers represent just the tip of the iceberg. The hidden
costs are even bigger. Namely, there are several sources of legacy
software expenditure”:
Maintenance and support
The costs of legacy system maintenance operations include the following:
Updates and changes. Legacy systems are typically quite large in terms of code base as well
as functionality. Taking into account their monolithic nature, you cannot just change or replace
one system module. A small update might result in multiple conflicts across the system.
Infrastructure. Just like software itself, the underlying infrastructure becomes harder and more
expensive to maintain as it ages. Legacy systems often require a specific technical
environment, including hardware. Thus, the infrastructure maintenance spending remains high,
as compared to modern cloud-based solutions.
Staff training. Depending on obsolete technologies, the legacy system support and
maintenance requires a specific set of skills and expertise. While the developers who have built
the software might retire or switch to other technologies, it becomes increasingly harder to find
and retain the right talent. Dedicated staff training might be an even bigger source of expense.

Hidden Cost Of Legacy Software Continues
 Integration and compliance
Modern software platforms often rely on third-party APIs to
access a few capabilities, such as geolocation, user
authentication, data sharing, and transactions.
For example, Uber relies on the data provided through the Google
Maps API for its core functionality – an ability to find and track cars
nearby.
Modern technologies are integration-ready by default.
API vendors typically provide support for most of the programming
languages and frameworks out of the box. Yet, obsolete or rare
technologies typically lack the compatibility.
Connecting a legacy software to a third-party tool or service often
requires a significant amount of custom code. And there is still a
chance that the final integration won’t work as well as intended or
that it will work at all.
Another aspect of legacy systems that comes at a high cost is
compliance.
This is especially true for heavily-regulated sectors, such as politics
or law. For example, noncompliance with new standards set by the
EU’s General Data Protection Regulations in May 2018 can lead to
millions in penalties. Meanwhile, the implementation of
pseudonymization strongly encouraged by the GDPR is much
harder to achieve in legacy IT environments.[4]
 Security
According to the 2018 State of Cyber Resilience, legacy
infrastructure is one of the top threats to cyber security.
Indeed, legacy systems are usually less resistant to cyber
attacks, harmful programs, and malware, which is only
logical. If the software solution had been around for years, the
attackers most likely had enough time to get familiar with the
code and find its vulnerabilities.
Another reason for this is that outdated software might no
longer be supported by the vendor. This means that no
patches are provided and no one keeps the system compliant
with the latest security requirements.
“Supporting a legacy operating system in your enterprise is as
much about risk management as it is about traditional IT
service management.”[13]
– Vijay Samtani, manager in Deloitte’s security and
privacy services
Even if your system is custom-built and you have the
resources to maintain it, adding more patches means
additional investment in security. In the worst case, this
might resemble a leaky bucket, where you get a new
breach as soon as the previous one is fixed.

Hidden Cost Of Legacy Software Continues
 Organizational agility and efficiency
Talking about business opportunities, timing proves to be crucial.
How fast can you respond to the market challenges? Will it take
weeks to adopt new technologies and solutions? Or rather several
months? The truth is, in most cases, businesses bound to legacy
systems lack organizational agility to adapt to the upcoming
challenges. Meanwhile, IT modernization is grounded on agile
methodologies which can speed up the provision of IT services by 30
to 50 percent.
Although moving from cumbersome legacy IT to agile and digitally
enabled IT can be complex and challenging, it is necessary to meet
modern IT demands. Partially due to their inability to be updated and
modified, legacy systems can hold back innovation, resulting in
significant losses. Moreover, outdated software is less efficient, which
has a negative impact on the employee productivity.

Preparing for the Digital Future
Despite the problems and risks related to the outdated
software, a majority of the companies are still lacking legacy-
modernization initiatives. Most of them would only consider
reengineering the current solution in case of an emergency,
such as a complete system outage. The research by
Logicalis shows that only 5 percent of CIOs see their
organizations as “digital innovators.”[9]
“Legacy technology brings with it a legacy relationship
between business and technology”[9]
– Logicalis Global CIO Survey
To bridge the gap between the current offerings and customer
expectations, companies need to rethink their business
models, making them digital-ready. Yet, the legacy software is
only one aspect of the problem. Sometimes, a far bigger issue
is the mindset that comes with it. That is why proving a
business case for software modernization is the first challenge
to be faced by the initiating party.

The business case for software modernization
So, why modernize legacy systems? The following benefits prove that
legacy-system modernization is a vital part of the overall business
digitization.
Yet, despite all the benefits, the resistance to modernization is often
well-grounded.
Considering the challenges and risks :
Two major arguments are typically used when talking about a software
modernization initiative. Those are the time and cost involved. Indeed,
a solution that took a team of developers years to implement cannot be
re-created in a week, even if you hire twice as many developers to
handle the task. Thus, in some cases software reengineering cost
might exceed the initial investments.
Challenges that derive from legacy modernization include the following:
• Personnel is usually unwilling to adjust to management
changes. Motivation, training, and coaching will press
them in that direction, but will entail additional risk and
cost.
• If there are multiple legacy systems within one
corporation, their modernization should be articulated and
prioritized in a corporate program that considers the
required effort and time window for each system
individually
• Initially tailored for the specific platform functionalities the
app ran on, legacy code should be handled with extra
care, even if some pieces of it can appear to be no longer
relevant and in need of replacement.
• Having to deal with countless lines of code that only
address a given corporate process can be a real

Checklist for successful application
modernization
7 things to consider for a successful software modernization project:
1. Assess the current state of legacy systems.
Legacy software does not always fall under “old” or “outdated” definitions. There are more
aspects to assess when identifying the legacy.
2. Select the modernization approach that would be the fastest to deliver value.
Based on the assessment conducted at the first phase, choose the modernization approach
that best fits your needs and will help you deliver results fast.
3. Rethink the architecture and prioritize for simplicity.
Legacy systems often fail to perform as needed due to their overly complex structure. When
modernizing your system, less is more in terms of both architecture and functionality.
4. Choose the technology stack to deliver optimal performance and user experience.
When reengineering your system, make sure you use a solid and future-ready technology
stack. The choice of technologies should completely depend on the product specifics..
5. Document for future system growth.
To avoid the same mistakes that made you reengineer your current solution, introduce (or
adopt best practices used by other companies) a set of coding standards and internal
processes.
6. Create a separate support and retirement schedule for your legacy system.
Even if you have a brand-new system running like a clockwork, you will still need your
legacy software, just in case. So, don’t kill it all at once.
7. Budget for training and system updates.
Working with the old systems for years, your employees might need some time and
guidance to master the new software. So be ready to invest in staff training for better
performance and efficiency. Additionally, plan for regular system updates. If you fail to keep
your product up to date, you will soon face another modernization challenge.
 Legacy system assessment framework
These are several steps to assess the existing solution :
Technologies Analysis
The first step in our plan is to identify and analyze the technology stack of the
existing product. Thus, we know if the programming language or frameworks used
are still relevant and supported by the vendors.
Architecture Audit
In case the tech stack (or some parts of it) is still relevant, it is necessary to
conduct an architecture audit. This will help you define the system elements which
are functioning well and focus on the ones that need modernization. ]
Code Review
Legacy software usually has an excessive codebase, requiring regular reviews and
refactoring. If not treated properly, the software tends to “rot.” This might lead to
more design flaws and conflicts as you try to introduce new features or update
some parts of the system.]
UI/UX Review
The same principle applies to the UI and UX design. A thorough design review is
required to understand which parts of the system interface need a “facelift.”
Performance Testing
Performance testing aims at uncovering further potential issues with the legacy
systems. Poor performance or major flaws can serve as a reason for a complete
system reengineering as well as selective improvements.
Current Requirements and Opportunities for Future Growth
While considering the current business needs and requirements articulated by the
client, we also focus on opportunities for the future growth. Thus, we help you
make an informed decision by providing a well-grounded and unbiased opinion on
the software modernization options.

Legacy Software Modernization Best Practices
Legacy enterprise systems modernization and replacement strategies
• Architecture-Driven Modernization (ADM) is a
coordinated strategy of understanding and advancing
existing software assets like its functionality, components, or
requirements. The main advantage of ADM is that it
approaches modernization from an analysis- and design-
based perspective, rather than source-to-source migrations.
The main use of architecture-driven modernization comes in
the forms of platform and language independency and
interoperability. ADM will enable projects with aging
software to become more agile.[15]
SABA is a high-level framework for planning organizational
and technical issues during legacy system evolution and
migration. SABA’s iterative method assists in making decisions
among different modernization options, starting from discarding
the old software completely, to freezing it, or outsourcing. The
framework tackles various legacy system problems while also
providing a means to analyze the future implications of
software choices.
Reverse Engineering Model is a strategy where the legacy
applications are gradually migrated to the new environment,
but legacy data migration is the last phase of the migration
process. To access legacy data, the applications in the new
environment use a Reverse Gateway. Reverse Engineering
Model is a good choice for high-cost, long projects that may be
undermined by the technology pace.
Visaggio’s Value-based Decision Model (VDM) selects the
most suitable software renewal process based on technical
and economic metrics.[14] It is applied when economic returns
or quality of a legacy system are lower than expected and
helps decide on a better way to revitalize the system.
DevOps Contribution allows for speeding up the legacy
modernization processes by swiftly deploying new software
releases with a low degree of bug or errors while still complying
with the target operational IT environment.

Legacy modernization methods
Legacy Software Modernization Best Practices
The revolutionary method revolves around developing and carrying
out a legacy system replacement strategy. Its implementation requires
shutting down the old system and building a new one from scratch.
The approach might be considered extreme, but sometimes it is better
to retire the system completely to avoid some serious damage, such
as security breaches, lost data, system downtime. Or it can be applied
in a case when the original product cannot solve the existing business
problems anymore, so it makes no sense to reengineer or port it to the
new technologies.
The evolutionary method presupposes a systematic, step-by-step
software modernization process. It is usually less painful: It does not
disrupt the major business processes and implies significantly lower
risks for the company. Yet, it often turns into a band-aid method, where
you focus on solving the problems instead of removing the factors that
cause them.
“The technology is always getting faster, and automation simpler. We
need to keep up with that and the business use cases and
requirements that may emerge. In this case, we replaced every
platform and phased out traditional software— although in
the beginning we kept the legacy technology running until we had fully
replaced the required functionality”.
Leon Bedaux, head of digital IT, KPN [6]
“It is no surprise that many companies stick to
modernizing their platforms rather than replacing them.
However, synchronizing the operations of new digital
and legacy IT teams poses a number of challenges:
•compatibility issues
•communications involving legacy systems can
consume more network bandwidth than their modern
counterparts, owing to the serial nature of their output.
maintaining security on legacy systems can be difficult,
since users cannot expect automatic protection from
new threats.
Nevertheless, there are many examples of successfully
integrated mainframe systems.
Liverpool Victoria is one of them. This insurance
company’s car business suffered from a website that
mapped directly on to mainframe data. By separating
the mainframe processes from the front end, the
company introduced more user-friendly pages and
made it easier to add features in the futures.”

Application modernization is
the transition of existing
applications to new
approaches on the cloud,
helping you achieve the
following business outcomes:
• Speed to market
• Rapid innovation
• Flexibility
• Cost savings
Application Modernization
18IBM Cloud / © 2018 IBM Corporation
Application modernization is business modernization
Accelerate digital transformations
Driven by need to build new capabilities and deliver them quickly
Improve developer productivity
Developer self service via adoption of Cloud Native architecture and Containerization
Increase operational efficiency and standardization
DevOps enablement drives a culture of automation and transformation of operations

Ready your Applications For Cloud
BUILD ONCE AND DEPLOY ON ANY CLOUD
Assess your applications. Identify apps that can be readily
moved into
the cloud platform and those that will require refactoring.
Build applications quickly. Leverage containers as the foundation
for applications and services.
Automate deployments for productivity. DevOps pipelines
automate deployments quickly and reliably.
Run and consistently manage. Consolidate operations for all
applications into a common management approach to ensure
reliability and faster problem resolution.

Modernization Journey
CHOOSE THE APPROACH THAT BEST FITS YOUR NEEDS
• Containerize the monolith. Reduce costs and simplify operations
by
moving applications to a cloud runtime.
• Expose on-premises assets with APIs. APIs enable legacy assets
that are difficult to enable to the cloud.
• Refactor into macroservices. Break down monoliths into smaller
deployable components.
• Add new microservices. Innovate incrementally, reduce
complexity,
and establish success early.
• Strangle the monolith. Incrementally sunset the monolith.

Build On A Trusted Foundation
CONTAINERS - THE FOUNDATION FOR MODERNIZATION
• IBM Cloud Paks. Enterprise-ready, containerized software
solution for modernizing existing applications and
developing new cloud- native apps that run on Red Hat
OpenShift.
• Red Hat OpenShift Container Platform. Based on the
Kubernetes
container orchestration project, OpenShift is the starting point.
A strong foundation with resiliency and security in the forefront
is essential.
• Deploy anywhere. Use any public or private cloud provider.

IBM Cloud Pak for
Applications
Build, extend deploy,
run applications
23
Cloud Paks – Pre-integrated for cloud use cases
Operational services
Container platform
IBM containerized
software
IBM Cloud Pak for
Data
Collect, organize, and
analyze data
Container platform
IBM containerized
software
IBM Cloud Pak for
Integration
Integrate applications,
data, cloud services,
and APIs
Container platform
IBM containerized
software
IBM Cloud Pak for
Automation
Transform business
processes, decisions,
and content
Container platform
IBM containerized
software
IBM Cloud Pak for
Multicloud Management
Multicloud visibility,
governance, and
automation
Container platform
IBM containerized
software
Pre-integrated
Systems
Today, IBM offers clients the first five Cloud Paks…

Develop apps for today and tomorrow
TOOLS YOU NEED TO SUCCEED
• Develop innovative cloud-native apps. Adopt a common model based
containers and microservices. Enable developers to rapidly build and
to any cloud, and deliver value in record time.
• Modernize and leverage investments. Take advantage of
tools that make it easier to estimate time and costs associated with
modernization. Understand when to refactor, replace, containerize,
maintain existing apps. The Cloud Pak for Integration has capabilities
to balance traditional and modern integration styles.
• Create an agile DevOps culture. Move to a cloud-native model of app
development with modern architectures and change the way you work
agile DevOps practices.

Align Priorities and Options
APPLICATION MODERNIZATION IS BUSINESS MODERNIZATION
Align to your business priorities. Understand where your business
needs are driving you to modernize.
Take inventory of your apps. Run IBM Cloud Transformation
Advisor to collect information from your existing Java environment
and recommend modernization activities.
Spend your modernization dollars wisely. Make better decisions by
understanding how your application portfolio aligns to your
business priorities.

Assess Your App Portofolio
NOT ALL APPLICATIONS ARE CREATED EQUAL
Simplify. Understand where your business needs are driving you to
modernize. Run the IBM Cloud Transformation Advisor to gain clarity
on your modernization options.
Select the right modernization approach. Evaluate all possible
modernization options relative to their complexity, cost, and business
value.
Plan and prioritize. Plan your modernization based on matching
effort to business priorities. Your first few projects should be both
short in duration and high in potential business value.

Containerize Your Apps YOU WRAPPED YOUR APP IN A CONTAINER IMAGE - NOW WHAT?
Adapt your applications. You need accelerators to adapt your
application to a containerized environment. Cloud Pak for
Applications provides pre-built containerized middleware and
services to support your journey.
Modernize your DevOps and configuration. Automatically generate
pipelines for new applications as well as orchestration tools that
automate configuration.
Consolidate and standardize operations. Manage and monitor
operations based on open container technologies.

Adopt A Modern Application Platform
A CLOUD-FIRST FRAMEWORK FOR THE FUTURE
Build cloud-native microservices. Build new applications with
WebSphere Liberty, a light-weight runtime optimized for cloud.
Extend with new services. Use Cloud Pak certified containers to modernize
and extend existing WebSphere applications.
Migrate unchanged apps. Containerize your traditional WebSphere apps and
use common operational services, including logging and monitoring.
Adopt standardized operations. Achieve scalability, availability, maintainability,
and security with Kubernetes and Red Hat OpenShift Container Platform.

Refactor MODERNIZE INTELLIGENTLY
Productivity. Refactoring an application to microservices improves
developer productivity and allows you to quickly release more code.
Scalability. Refactoring to a more scalable architecture should be
done incrementally. It’s important to provide real business value at
each step in the refactoring process.
Containerize. Repackage your monolith as a WebSphere Liberty or
Open Liberty container. Then add new containers to your solution as
you separate business functions into new microservices.

Curated development tools and runtimes
STANDARD OPEN TECHNOLOGIES
Integrated collections. Start developing applications locally using
lightweight containers that match your production environment.
Integrated developer tools. Use your favorite development tools to
create apps for Kubernetes faster. Spend more time writing code
rather than re-tooling.
Integrated DevOps toolchain. Speed development with a
preconfigured DevOps pipeline that can build, test and deploy your
application to production.

Expose and integrate
UNLOCK BUSINESS VALUE FROM EXISTING SYSTEMS
Expose. Expose existing value as REST APIs for easy
access from
any endpoint.
Manage. Place APIs under management control to
improve security, performance and visibility.
Leverage. New applications can build on freshly-exposed
APIs from existing applications without requiring changes
existing applications.

Modernize operations
UNLOCK BUSINESS VALUE FROM EXISTING SYSTEMS
Expose. Expose existing value as REST APIs for easy
access from
any endpoint.
Manage. Place APIs under management control to
improve security, performance and visibility.
Leverage. New applications can build on freshly-exposed
APIs from existing applications without requiring changes
existing applications.

IBM has helped thousands of enterprises across 20 industries
realize a faster, more secure journey to cloud.
Enabled service-level
monitoring to manage cloud
workloads with actionable
alerts
Modernized automation
for 20,000+ VMware
applications
Gained consistency and
control across IBM and
3rd party clouds

Leverage existing middleware investments
Assets, skills, licenses
Investment flexibility
Purchase only the capabilities you need; full
flexibility within entitlement
Future proof, leveraging open technologies
As new standards & capabilities emerge
(e.g., Istio, Kubernets, Helm, Kafka)
IBM Cloud / April 2019 / © 2019 IBM Corporation
34
Only IBM provides
investment protection
as you journey to cloud

IBM Cloud / April 2019 / © 2019 IBM Corporation
35
ONE JOURNEY
ONE IBM
Futher Information ?
Let’s Talk
Adam Aditya Nugraha
Cloud Technical Specialist
IBM Hybrid Cloud
E-mail : adam.nugraha@ibm.com
Phone : +6287883707200
Github.com/adamnugraha
Developer.ibm.com/adamnugraha
Linkedin : Adam Aditya Nugraha

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