White Papers

The Digital Transformation Imperative

Issue link: https://read.uberflip.com/i/1344949

Contents of this Issue

Navigation

Page 4 of 14

© 2020 Mirantis Inc. All Rights Reserved. Information is subject to change. | www.mirantis.com 5 Almost every organization has legacy technology -- the accumulated debt f rom decades of investments in different technology platforms. Even tech giants such as Google, Facebook and Amazon have been around for 15 to 20 years.. They have legacy systems that divert resources f rom innovation, though these massive enterprises can often afford to eliminate unprofitable, unpopular or difficult to maintain services with few consequences. Most enterprises don't have that luxury. Legacy applications are there for a reason. They serve an important purpose and are critical to the day-to-day operations of the organization. Insurance companies and banks that have been in business for 150 years can easily have hundreds of systems of record running on dozens of different platforms -- technology debt built up over time through acquisitions, new business lines, or just efforts to modernize inf rastructure in the past. An insurance company often can't retire a platform until after all of the policies managed on it have been terminated. That can mean waiting decades to retire a COBOL or Fortran application and all of its associated components. Rewriting the underlying application is so expensive and time-consuming that the economics rarely work out favorably. But "keeping the lights on" for legacy applications is also expensive. Business-as-usual systems consume 70 to 80% of the budget, leaving little room for innovation. There's a strong desire to shift budget to innovation, but legacy applications just refuse to die. The Weight of Accumulated Technical Debt

Articles in this issue

Links on this page

view archives of White Papers - The Digital Transformation Imperative