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Cloud Modernization Concept | Cloud Modernization Benefits 

Cloud application modernization
Written By: Marketing Team


Cloud Modernization Concept | Cloud Modernization Benefits 

June 3, 2022 7-Minute read

It’s been a decade since the advent of cloud technologies, and the result is clear: a cloud modernization strategy brings about tremendous value to businesses.  

Most importantly, the value is generated by enhancing performance and bringing agility to the business through the usage of modern cloud technologies.  

Engineering and IT heads in organizations are now looking for ways to accelerate digital transformation plans by using cloud technologies. There is a realization of the importance of the cloud as a key to achieving these ambitious transformations. 

It’s important to point out that the cloud journey is not just about technology; it also involves complex organizational, operational, and economic challenges. 

Cloud Architecture 

It's good to learn about the ways to manage cloud spend and what a cloud architecture provider actually provides. The use of cloud-based solutions induces agility and innovation in developing digital solutions at a reduced cost. It's no surprise that businesses prioritize legacy to cloud modernization via multi-tech cloud. 

A proactive approach helps businesses achieve digital revenue streams, smarter ways of working, and rapid availability of on-demand software applications, data, and infrastructure services to render an unbeatable client experience. 

The Value of Legacy in Cloud Modernization 

Achieve Business Transformation  

Streamline technical operations and control the risks associated with technical operations to drive revenue, control technical breakouts, and achieve business innovation, growth, and resiliency.  

Moving Beyond Modernization  

Enable an ISV (Independent Software Vendor) to achieve modernization and develop a business strategy to maximize cloud opportunities. 

Enhancing Digital Innovation  

Recreate enhanced customer experiences with an enhanced cloud architecture and digital innovation. Utilize the capability Sonata has for engineering products and services to develop solutions that help create unique, differentiated business solutions. 

About Legacy Systems in Use 

Earlier, businesses were using legacy setups, which is an information system with critical data that may be based on outdated technologies but is very important when it comes to running day-to-day operations. 

There is widespread usage of obsolete systems for core business purposes that is keeping companies from offering state-of-the-art services and bringing about revenue enhancement through creating faster products and services using the latest technologies, especially cloud systems.  

Fine tuned over the years, the obsolete systems have been framed to deliver specific functionality and there is an urgent requirement to modernize them.  

The disadvantages of obsolete systems 

It prevents repeat business. 

In a competitive market, stopping product organizations from developing enhanced business solutions and focusing on long-term customer retention also prevents repeat business. 

Outdated Systems 

Outdated systems can be exposed to crashes at any point of time. Although it is tough to specify the reason, old systems result in creating computer glitches and result in a painful client experience at times. The systems are developed with the lifecycle in mind, and the legacy system can be defined by its age.  

Lack of support options 

It is difficult to support, maintain, improve, or integrate with enhanced systems due to a lack of an advanced underlying architecture, technology, or a robust design. Going by market reports from reputed sources, more than 50 percent of IT resources are spent on managing age-old systems rather than shifting towards strategic and hi-tech applications. 

Many companies are using legacy applications regardless of the age or quality of the technologies under usage. There is a tacit understanding that software will keep on working just fine as it has been working for decades and will be able to cope with critical tasks. 

Why should you invest in Legacy to Cloud Modernization and Cloud Migration? 

The cost of running such an outdated system 

A significant amount of money is spent on the operation and maintenance of outdated systems, which run the risk of reduced efficiency, cybersecurity, and a lack of infrastructure to develop robust solutions. There is a strong need to invest more in research and development, infrastructure and application modernization, and enhancement of available technical resources. The numbers represent the tip of the iceberg as the actual hidden costs associated with them are huge.  

Major sources of legacy software expenditure identified include maintenance and support, integration and compliance, security, lost business opportunities, and reduced organizational agility and efficiency. Any major change or update to the legacy system requires time and effort, neither of which comes cheap or at a fast pace.  

Problem with system integration 

It's a challenge to maintain the underlying infrastructure as it ages. There is a specific technical environment required with more investment of time, money, and resources on maintaining legacy infrastructure, which is quite large compared to modern cloud-based solutions. 

Also, as the data is scattered across several databases and storage resources, it is hard to track and reorganize for increased storage space optimization. Transferring data to newer database systems is another time- and money-consuming task. 

There is a need for third-party APIs to reinforce critical capabilities, including user authentication, data sharing, and transactions. It is wise to use cloud-based solutions to leverage these features with easy integration of tried and tested solutions and avoid reinventing the wheel.  

Zero compatibility issues 

Modern cloud-based solutions are integration-ready by default and overcome the challenge of compatibility issues with obsolete or rare technologies. There is significantly less code development required to navigate modern cloud-based technologies used by third-party tools or services.  

Cloud modernization is a means of overcoming compliance hurdles such as GDPR (General Data Protection Regulation) and others. 

Cloud modernization of products helps overcome increasing security breaches and overcome grave concerns regarding the vulnerability of outdated product development ecosystems.  

It is easier to support the issues by the vendor and there is a provision to provide patches and keep products and systems compliant with the latest security requirements.  

By investing in cloud modernization, there is room for innovation and identifying new opportunities in the industry, allowing ISVs to outperform their competitors and gain a larger market share. 

For instance, digital channels are increasingly driving growth in deposits and consumer lending. Thus, a cloud-based product offering can help lure customers from competitors and have more customer creation and customer retention. This is the scenario in mortgage and personal loans, digital lending providers, and the financial and healthcare industries, for instance. 

The Benefits of Cloud Modernization for ISVs 

There are distinct benefits for Independent Software Vendors (ISVs) by adopting cloud modernization.  

It is commonly heard that the cloud levels the playing field between small to mid-sized ISVs and large vendors and enables them to roll out hi-tech product offerings in a hastened way and retain clients in this era of cut-throat competition.  

Cost reduction 

It’s a major boon for small to mid-sized to large ISV vendors that they are able to reduce the source of the largest cost, i.e., IT infrastructure, and drive down the cost of operations.  

Without an in-house data centre, an ISV can easily plan to develop unique domain-specific product offerings and make worthwhile investments in research and development or quality-centric product enhancement. 

ISV can scale the data centre to the exact size and speed of access required by the vendor and end customers using cloud-based infrastructure. An ISV can rely on cloud-based services and wipe out the hard work of IT spending, thereby reducing speculative purchases and unnecessary IT investments. 

Ease of access and deployment of product offerings 

ISVs are likely to be impressed by the new, easy, and less cost-intensive access to data storage. In addition, there is a secure avenue of access to data and convenience of product usage over the web, as is true for Software-as-a-Service.  

A hybrid cloud service can be offered for the ease of clients to access sensitive data on-site while using refined data and business logic to develop product offerings.  

Safe handling of sensitive data 

Existing vendors can instantly update outdated products that are shifted to the cloud for quick access and convenience of clients, helping in client acquisition and retention.  

Architectural flexibility  

ISV can modify and tweak cloud sets to meet the needs of the situation. 


Scalability with ISVs means having the leverage to upscale or downscale IT operations as required. ISVs can use a hybrid cloud and take advantage of testing new technologies and capabilities without upfront capital investment, pushing refined products into production easily and quickly.  

A cloud modernization strategy has helped ISVs bring in resilience and crisis management capabilities as part of their core offerings. Achieving digital aspirations is dependent on how mature an organization is in leveraging IT infrastructure that is further refined by cloud modernization. 

Infrastructure is the first of three aspects, the other two being applications and services.  

The most important aspects of an ISV's cloud modernization strategy 

The cloud modernization strategy assists ISVs in addressing three critical factors, namely, 

• Transformational digital vision 

• Scalability flexibility 

• Improving CAPEX and OPEX results 

There is a provision to choose a flexible mix of cloud with varying features of Software-as-a-Service, Infrastructure-as-a-Service, Platform-as-a-Service and the latest Function-as-a-Service with cost benefits, ease of access, reliability and safety. 

ISV’s can create a fortune by offering products via the cloud to a global clientele and still save on marketing, sales, and delivery expenses. There is surely magic in cloud services in creating new opportunities. Timing of product launch is critical and it is advised to have better organisational agility and efficiency with cloud modernization and speed up product roll out with continuous delivery integrating product development. 

No wonder there is a competitive advantage, happier clients, future-ready business and bigger opportunities available by going in for legacy to cloud modernization. 

Sonata Advantage for ISVs for Cloud Modernization. 

There is an availability of skilled resources and specialists required for cloud modernization. Giving you the benefit of increasing your customer base and capacity by leveraging the services of an Infrastructure-as-a-Service (IaaS) partner, which could be a major cloud provider. You can easily navigate the storage space and speed of operations as per customer needs.  

Providing cloud computing services that help in market growth generates enhanced ROI and profitability. Avail the experience of Sonata and monetize the advanced cloud-based services and products that generate new revenue streams while fulfilling the expectations of your existing customer base.  

There is use of multi-tech cloud capabilities, creative specialists with agile-driven working environments that enhance workforce effectiveness and value creation for ISVs. There is an intelligent use of innovative business models applicable in multi-cloud digital environments with the growth-oriented mindset of experienced professionals.  

Carrying out a well-planned approach using industry best tools and methodologies to ensure successful legacy to cloud modernization and make the complex tasks simpler. A well-planned retirement schedule is created for legacy applications till the brand-new cloud-based system is running without a hitch. an approach with empathy for the ISV staff, with due effort invested in training and guidance needed by the ISV staff to manage cloud-based applications. 


Sonata takes a holistic approach involving infrastructure, applications, and services to help ISVs realize the full benefits of cloud modernization with Azure. Sonata has the experts to guide ISVs concerning a 360-degree approach for effective results as the cloud is now at the heart of digital transformation journeys. The cloud is now a key lever in rapidly transforming businesses at scale.  

Sonata assists in narrowing the cloud partner selection in terms of security, scalability, flexibility, and affordability, as well as relieving the ISV of the associated Cloud Modernization strain, ensuring long-term productivity for businesses.