Legacy System Migration: Should IT spend its time maintaining Legacy Investments?

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Everyone knows that legacy systems are bad. Unlike wine, they don’t get better with age. These systems belong to the legacy of past generations of software. Legacy systems, which form the backbone of many enterprises, are holding organizations back from leveraging new digital technologies and creating new experiences for their customers/partners. Many developers wish that they never have to inherit these. Good luck to those who get stuck with maintaining or converting them.

 

These legacy software systems can still be found in many companies and administrations. While these systems may still meet the requirements, they were originally designed for, they are typically based on old technologies that are no longer common. Since they only partially meet today’s IT requirements, organizations keep facing poor system performance and paying high maintenance costs.

 

Legacy system migration refers to the modernization of old IT systems to a newer hardware infrastructure or software platform. In companies, the maintenance effort on IT systems is steadily increasing, thus the old systems must be transferred to a connected and up-to-date version with multi-layered architectures. For the IT team, this means an enormous challenge.

 

According to a study the global application modernization services market size is expected to grow from USD 11.4 billion in 2020 to USD 24.8 billion by 2025. Key factors of this growth are cloud services, rising demand for modern infrastructure to ensure business continuity and focus on transforming and modernizing legacy systems.

 

Another independent survey, conducted by Boomi, a Dell Technologies company, questioned 825 Enterprise Architects in the EMEA region showed how companies are modernizing ERP applications and how they are coping with the challenges that complex IT environments bring with them. While many companies used their IT budgets to maintain outdated systems in the past, significantly more funds are now flowing into modern solutions. 35% and 33% respectively of the companies surveyed stated that they use their budget to modernize their systems and to innovate. The expenses for maintaining outdated systems are reduced from 70% – 80% previously to around 34%.

 

“It’s clear that investments in modernizing applications and digital business innovations are increasing. Executives and IT decision-makers will soon recognize the advantages of these investments and further reduce expenses for the maintenance of obsolete technologies”, says Stefan Soerensen, Account Executive at Boomi.

 

The latest Boomi survey also shows that decision-makers in European companies often face a dilemma: either they invest in the costly and complex process of ERP modernization, or they are overtaken by more innovative competitors. Many organizations find it difficult to modernize or extend their legacy systems in a way that enables them to create an IT strategy that supports the quick adoption of newer technologies such as cloud, big data, IoT, and mobile.

 

Should IT spend its time maintaining legacy investments or creating new things?

 

The answer is quite simple, outdated networks and servers no longer meet the needs of companies. Taking the right step and modernizing the legacy is the way forward.

The IT modernization promises cost savings, efficient management of IT infrastructure, efficient utilization of human capital, better security and risk management, enhanced user experience, and last but not the least, a direct impact on competition. Looking at legacy modernization, numerous advantages are associated with it become clear. Once the conversion/transformation phase is over, it becomes clear to what extent the new setup promotes efficient work, especially in logistics, purchasing and sales. This enables your company to concentrate on its core business and to implement your processes and projects even faster and better.

 

To modernize your legacy IT, it is important to have the right staff. Xorlogics supports you in every step towards the modernization of your legacy system efficiently and without risk. Reach out to our software experts to discuss the steps you can take now to avoid costly rebuilding.

 

Sources:

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The Basics of Cloud Computing Security

Enterprises using cloud computing

According to Gartner, the size of the global Cloud Computing market is projected to grow 17.3 % in 2019 with a total of $206.2 billion, up from $175.8 billion in 2018. These numbers demonstrate that Cloud computing is becoming mainstream in enterprise IT. By having a data storage in clouds business can benefit from a lower IT costs with greater scalability and greater reliability compared to having resources in their own data center. Study has also highlighted that the fastest-growing segment of the market is cloud system infrastructure services, also known as, SaaS or IaaS, which is forecast to grow 27.6% in 2019 to reach $39.5 billion, up from $31 billion in 2018.

 

In addition to these numbers, a recent study by Eurostat comes to the conclusion that “26 % of EU enterprises used cloud computing in 2018, mostly for hosting their e-mail systems and storing files in electronic form. 55 % of those firms used advanced cloud services relating to financial and accounting software applications, customer relationship management or to the use of computing power to run business applications. In 2018, many more firms used public cloud servers (18 %) than private cloud servers (11 %), i.e. infrastructure for their exclusive use”.

 

Compared with 2014, the use of cloud computing increased with more than 21%, particularly in large enterprises. These numbers will certainly go-up and companies must prepare themselves from “what-if” scenarios. “What-if” they have little or no control over data, such as a loss of service or a hacker attack.

Outsourcing means losing significant control over data. Even with a huge success of Cloud, few large companies don’t want to run a program delivered in the cloud that risk compromising their data through interaction with some other program. As they want to maintain full control over who has access to their data.

 

In addition to no control over data, companies are quite concerned about the risk of seizure. It means that if they opt to choose a public cloud, they are sharing computing resources with other companies. Exposing their data in an environment which is shared with other companies could give the government / federal authorities “reasonable cause” to seize your assets in case if another company has violated the law. Simply because you share the environment in the cloud, may put data at risk of seizure. The only protection against the risk of seizure is to encrypt their data. Even if cloud provider is forced, by law, to turn over user’s data and any access he might have to that data, as he won’t have user’s access or decryption keys, shearing data won’t be a risk. To get at the data, the court will have to come to user and subpoena user. As a result, user will end up with the same level of control user have in his private data-centre.

 

Plus, when it comes to encryption management in heterogeneous IT landscapes, IT managers should consider multi-vendor management tools that provide a 360-degree view of how all resources are encrypted and managed. Encryption key management and endpoint authentication are also centralized and server-based with these tools, often based on existing network policies, such as Active Directory databases. It is impossible to achieve infrastructure-wide encryption and security compliance without proper management tools. If the administration is difficult, mistakes happen. Protecting data in heterogeneous IT infrastructures with a high cloud and virtualization share is a tightrope walk that is sure to become no less complex in the future.

 

Next biggest concern, of companies, in adoption of Cloud is the failure of cloud provider to properly secure portions of its own infrastructure, especially in the maintenance of physical access control, which may result in the compromise of subscriber systems. Cloud can comprise multiple entities, and in such a configuration, no cloud can be more secure than its weakest link. It is expected that customer must check on regular basis and trust provider’s security. For small and medium size businesses provider security may exceed customer security. It is generally difficult for the details that help ensure that the right things are being done.

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In general cloud computing provides persuasive benefits in IT world but it’s not completely secure and risk free in terms of data security challenges. Cloud performance can be affected in case of security issues. Therefore, cloud computing providers are responsible for good care of security in systems and data. Cloud computing providers are good in many ways, sometimes better than some in-house IT. The reliability of cloud providers can be classified much better than some internal infrastructure, as they master all features of their logiciel.

 

For each cloud service that has been mentioned above, the cloud service provider provides some security measures. For example, that IaaS service provider only allows connectivity from specific IP addresses in their Access Control List (ACL). PaaS service providers only allow certain usernames and passwords. SaaS service providers also limit their service to those who already have the security token before utilizing the software.

 

In any case, before implementing cloud in your enterprise eco-system, one must analyze and identify appropriate security risks and overcome issues such as virtualization, authentication mechanisms and cryptography techniques and protect the confidentiality, integrity and availability of data regardless of the form the data may take.

 

Most businesses today rely on diverse IT infrastructures with different operating systems and multi-cloud environments. Despite all successes, the basic challenge remains. Data must be protected. Protecting this data is not just about protection against hackers. Good governance is also required to ensure that all dealings with this data in order to comply with legal privacy and compliance requirements and industry specific requirements.

Sources :
Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17.3 Percent in 2019
Service Market for Data Center by Service Type (Design & Consulting, Installation & Deployment, Professional, Training & Development, Maintenance & Support), Tier Type, End-User, Data Center Type, Industry, and Region – Global Forecast to 2022
Cloud computing – statistics on the use by enterprises

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