The answer is a clear and emphatic yes. Although legacy IT modernization often involves a lengthy timeline and significant financial investment, the alternative—maintaining outdated systems—leads to escalating operational costs and declining system performance. Globally, IT operations and maintenance consume approximately 75% of total IT budgets, with legacy systems and mainframe monoliths representing the most costly assets to support. As operational expenses and associated risks grow, CIOs and IT managers are increasingly compelled to pursue modernization strategies.

However, the inherently complex nature of modernization projects results in many initiatives being delayed, left incomplete, or abandoned altogether. Despite legacy modernization accounting for nearly a third of all global IT development and enhancement expenditures, around 29% of these investments are wasted on unsuccessful projects.

The 2021 Mainframe Modernization Business Barometer Report highlights that 77% of organizations have started legacy system modernization but failed to finalize it. The most frequent reasons for failure include:

• Ambiguous understanding of the modernization scope
• Underestimating the effort required
• Overreliance on a “silver bullet” or magic solution
• Disconnect between C-suite executives and IT leadership

Often categorized as the "R-treatments," these approaches each address specific scenarios but may lack seamless integration when combined. Each method carries its own risks and costs, requiring careful consideration:

• Retire: Decommission the application entirely. Essential to ensure that critical data is preserved and accessible post-retirement.
• Retain: Continue using the existing mainframe application while modernizing peripheral systems. This often increases vendor lock-in and costs, and may not be feasible for legacy platforms outside IBM ecosystems.
• Replace: Adopt commercial off-the-shelf (COTS) software from reputable vendors with support and customization options. This approach is business-driven and can have unpredictable timelines and outcomes.
• Rewrite: Rebuild the application from scratch following modern architectural principles, often creating cloud-native solutions. Ideal for smaller applications but exponentially more complex and costly for larger systems.
• Rehost (Lift and Shift): Migrate legacy applications to a new platform using emulation tools, allowing legacy hardware to be decommissioned. This approach enables temporary continuity but can impact performance and compound risks when mixed with other treatments.
• Rearchitect: Utilize automated tools to transform legacy components into modern technology stacks, converting business logic and interfaces accordingly. This process is time-intensive and may result in hybrid codebases that challenge both legacy and modern developers.
• Reengineer: A hybrid approach combining several methods to tailor modernization precisely to organizational needs. Though often more costly upfront, it can lead to long-term savings. Finding a partner like Yoter Up with tool-agnostic expertise is critical for success.

Choosing the right modernization strategy requires a clear understanding of your application landscape and business goals. Here are pivotal questions that organizations must address during the planning phase:

• Is there a defined application development and sunset strategy for the next 10 years?
• Is there a clear and measurable definition of “done” for the modernization initiative?
• Have sufficient resources and budget been allocated for upfront solution design and proof-of-concept (PoC) validation?
• What are the long-term maintenance costs and operational complexity expected over the next 5 to 10 years?
• Does the application have specific performance requirements? Will the chosen approach meet these demands?
• How quickly must new features or updates be delivered post-migration?
• Is there a contingency plan in place in case issues arise after going live?
• What will the total cost of ownership be, including proprietary vendor licensing, over the coming decade?
• Has an experienced system integrator or modernization partner been engaged?
• Is there an effective change management strategy to align business processes with migration activities?
• How will quality assurance and testing be managed for the migrated solution?
• Is there strong executive and business community support for the modernization program? Are compromises understood and agreed upon?

Yoter Up specializes in guiding organizations through these complex decisions, offering expertise in legacy modernization strategies that balance innovation, cost efficiency, and risk management. Our tailored approach ensures a seamless transition, positioning businesses for scalable growth and future-ready IT infrastructure.