*By Cleyton Leal and Gabriela Camano
Currently, it is noticeable the acceleration of investments in the area of technology within companies, in order to support the operation and growth of the business in a sustainable way. In recent years, organizations have started to invest in different types of tools and services, increasing market competitiveness and the level of demand for those who wish to comply with the most current standards of digital services. However, there are two essential points to make any journey of digital evolution effective. It is about Application Modernization (App Modernization) and the management of Software Lifecycle (SLM)).
A survey carried out by Brazilian Association of Software Companies (ABES) revealed that the technology industry in Brazil grew by 22.9% in 2021, with an investment of around R$ 200.3 billion. Furthermore, according to a recent survey released by the consultancy deloitte, with the participation of 500 companies whose revenues are equivalent to 35% of Brazilian GDP, technological infrastructure and the modernization or acquisition of new applications, systems and management tools are among the main technological investments of companies in 2022, being mentioned by 96% of the interviewees .
For all companies that decide to invest heavily in their IT areas, there are some obstacles that need to be resolved. The main one is related to the high cost of technological service projects. It is necessary to update legacy software, in addition to investing in new resources and disruptive technologies to optimize the organization's processes and offer greater speed to the productivity of its employees.
How can SLM and App Modernization offer more effective management to the business?
By managing software more effectively, companies can save up to 30% of their investments annually, according to Gartner. the management of software life cycle (SLM) works from the inventory to the licensing stages. By carrying out a mapping of all the company's licenses and their implications, such as termination fines, lack or excess of licenses, for example, it is possible to offer an accurate diagnosis to proceed with the best option of improvement project that can be used.
In this way, with the structured process, the IT area is able to manage, qualify and guarantee the best investments in technology. Thus, in addition to complying with the manufacturer, it is possible to maximize cost reduction and optimize investments. That is, companies stop investing and buying unnecessary licenses, opting for manufacturers or new technologies that are more modern and efficient, making the process less costly and focusing on other strategic areas of the company.
Also during the assessment process, other critical points are evaluated, such as the best way to save capital, how to comply with manufacturers and licensing, the ideal way to pay off any technical debt, and the need to modernize or change an application. . In that context, the App Modernization comes into practice when the company already has a specific technology and at that moment it would not be worth buying a new one.
For modernize applications, two criteria are always evaluated: business value and technical quality. Therefore, an application with technical condition and low business value, for example, requires a greater effort to modernize and an investment that is likely to be quickly lost. In this case, the best options are to discontinue the application, retire it and replace it, not betting on its update. On the other hand, if the technical quality of an application is high but the business value is low, the best option is to keep it that way. Now, with a high business value, but a low technical quality, it is highly recommended to carry out the application modernization, as well as when both criteria are high, thus generating an optimization of the service.
From all this mapping and technical evaluation, the company starts to have a precise diagnosis of what should be modernized or not, or even, of the applications that need to be replaced. Together with the assessment carried out by the SLM area, it is possible to obtain a broad view of the company's technological situation, as well as to understand the best moment and the consequences for each action to be taken.
Benefits of integrating SLM and Application Modernization
When starting a diagnostic service, even as a form of prevention, the organization is already able to reduce some consumption, and after implementing the defined projects, it guarantees more agility, safety, quality and flexibility to its processes. In addition, carrying out the SLM and App Modernization processes together allows the company to invest more cutting-edge technological resources, easily adding new functions, increasing its competitiveness in the market, since the company's productivity is highly impacted.
The integration between Software Lifecycle Management (SLM) and Application Modernization provides companies with a complete picture of their current state and a picture of their desired state for the future, as well as a more assertive plan to get there. result, providing new technologies or modernized services that are adherent to the needs of each business. Finally, the savings generated in the company can enable the use of budget for other sectors, reallocating capital to points that are more critical for the business.
*Cleyton Leal is Application Services Leader and Gabriela Camano is Director of Software Lifecycle Management, both at SoftwareONE
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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