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HCLT Whitepaper: Legacy Modernization

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According to industry estimates most of the business critical applications for not only midsize companies, but also many Fortune 500 corporations run on legacy systems, due to the system’s excellent performance and stability. CIO’s and IT managers handling these applications constantly face challenges such as:
High cost of supporting and maintaining the expensive legacy applications.
Inefficient, slow and less productive system compared to competition.
Unmitigated risk associated with lack of skill availability in the resource market.
Risk associated with running business critical application on unsupported platform.
Higher time to market due to large, monolithic, complex and less productive systems.
Integration with newer systems due to incompatibility with new and different technologies.

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HCLT Whitepaper: Legacy Modernization

  1. 1. June 2012Legacy Modernization Modernize and Monetize
  2. 2. 2Legacy Modernization | June 2012ContentsABSTRACT 2LEGACY SYSTEM 3DRIVERS FOR LEGACY MODERNIZATION 3MARKET OVERVIEW 4HCL’ LEGACY MODERNIZATION 5ABOUT HCL 9ABSTRACTAccording to industry estimates most of the business criticalapplications for not only midsize companies, but also many Fortune500 corporations run on legacy systems, due to the system’s excellentperformance and stability. CIO’s and IT managers handling theseapplications constantly face challenges such as:• High cost of supporting and maintaining the expensive legacy applications.• Inefficient, slow and less productive system compared to competition.• Unmitigated risk associated with lack of skill availability in the resource market.• Risk associated with running business critical application on unsupported platform.• Higher time to market due to large, monolithic, complex and less productive systems.• Integration with newer systems due to incompatibility with new and different technologies.Legacy Modernization pertains to a solution that adapts tothe on-demand needs of business – a move that will help slash ITcosts; promises even greater return when firms leverage existingtechnology with emerging Internet standards to extend specificbusiness services to other applications, companies, and businessprocesses; introducing a new level of balance between maintenanceand responsiveness – a new level of business agility.HCL’s legacy modernization solution offers enhanced flexibilityto your enterprise by modernizing and migrating your Legacysystems to help you increase business responsiveness, lower costsand mitigate risks.© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  3. 3. 3Legacy Modernization | June 2012LEGACY SYSTEMAny technology, method, software and or hardware which iscontinually to be in use in spite of development of new and moreefficient methods and technology is a legacy. Legacy systems utilizeobsolete programming languages or application programs that istypically tough to manage.IT’S AN ASSET!• Functional• Customized• Well-tuned• Supports mission critical operations• Provides a competitive edgeORIT’S A LIABILITY!• Uses old technology• Requires hard-to-find skills• Lacks documentation• Hard to maintain• Resists change, integration, and replacementDRIVERS FOR LEGACY MODERNIZATIONMillions of investments, decades of development and Legacy systemsupport for hundreds of business critical application makes it ITassets for any organization .On the other hand issues related to itmakes a compulsion to modernize these Legacy systems.Today, however, as the platform seems to be ending its life cycle,both ISVs and enterprises that rely on the platform are facing a realproblem.ISVs CONCERNS:Selling to new customers is becoming more difficult -As soon as aprospect understands that a System i box is required, the sales processbecomes much more difficult. In addition, today’s customers aredemanding Web-based applications, and are unwilling to use greenscreen applications.Lack of available team resources -According to customers, thereare very few green-screen RPG courses conducted by IBM. Thesecourses are expensive and the number of people attending them isquite low. Veteran green-screen RPG programmers are retiring, andit is very hard to replace them or enlarge the development team.© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  4. 4. 4Legacy Modernization | June 2012Training new users on System i applications takes too long, becauseusers find it hard to cope with unfamiliar function buttons (ratherthan a mouse).Adapting applications to meet customer demands takes too long.Customers are accustomed to getting their requests met veryquickly (with modern integrated development environments (IDEs)such as Visual Studio). Although RPG is considered a 3rd or even4th generation language, compared to today’s modern languages—not to mention their powerful IDEs—green-screen RPG is lessproductive and lacks a rich third-party source for additional toolsand code libraries.Existing customers are moving to new applications on more modernplatforms such as .NET, where there is a growing availability ofpackaged applications.ENTERPRISE CONCERNSShortage of specialized resources: Programmers knowledgeable inCOBOL or RPG are becoming difficult to find as more and morereach retirement age. As a result, long-range staffing plans andsuccession planning are issues that IT departments must contendwith to ensure business continuity.Issues with integration: The AS/400 is not easily accessible by otherplatforms. Proprietary applications negatively impact the ability tointegrate and interoperate with other systems such as Windows andUnix.Total cost of ownership: While the cost of hardware alone is not theissue, the total cost of ownership increases due to the higher cost ofskilled resources as well as elevated license and support fees.Lack of business agility: Outdated platforms such as the AS/400can stand in the way of a corporation’s business agility. In orderto remain competitive, organizations need to rapidly respond tochanging market conditions, business requirements or to introducenew products or services.Lack of modern screens: RPG is the most common programminglanguage on the AS/400 and since it is character- based, modernscreens with graphic customization or web-enablement are difficult.MARKET OVERVIEWHOW IT GOT HERE?Prior to the turn of the century (2000) most modernization effortswere manual in their attempt to convert old systems to new.Manual efforts proved to be problematic, error prone, and extremelytime consuming and in many cases enormous failures costingbusinesses millions of dollars in the attempt and in potential lost© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  5. 5. 5Legacy Modernization | June 2012revenue. Many business leaders chose to continue spending on theancient systems electing to spend rather than risk a career-endingfailure attempt.Systems continue to work and represent business-criticalfunctionality; if it aren’t broke don’t fix it, created the exasperatedsituation many businesses have todayWHERE IT’S GOING?Resources capable of maintaining legacy systems, specifically thosein COBOL, Pascal, Fortran, RPG, etc. are retiring from the workforce with no newly trained developers entering the field. Forsystems to continue, business is forced to act now before it’s toolate. Artificial Intelligence techniques are being employed to buildautomated translation tools in order to partially, or in some casesfully, translate old legacy code, and databases to newer technologies.Businesses need to stay current with technological trends to staycompetitive and that means mobile solutions, Web solutions, andclient server solutions.Vendors continue to push the envelope to gain more efficiency withtheir translation tools in producing highly optimized code, betterthan that of custom generated codeHCL’ LEGACY MODERNIZATIONDISPELLING MYTHS ABOUT MODERNIZATIONMyth1.Modernization only refers to Technological enhancements?Truth- Modernization is the building blocks of program design andoperation• Policy Options• Waivers• Business Process Reengineering (BPR)• TechnologyMyth2. Modernization equates to the elimination of legacy systems?Truth- Modernization does not equate to the elimination of the oldwork-horse legacy systemHowever, it does require that the legacy system be in good workingorder –the system needs to be stable and reasonably adaptableMyth3. Modernization is the “magic bullet” that will increaseproductivity, decrease staff and save $$?Truth- Modernization If executed effectively, modernization canincrease productivity and/or result in cost reductions© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  6. 6. 6Legacy Modernization | June 2012• BUT—overselling benefits can result in problems• Managing expectations is criticalMyth4. IT has all the answers when it comes to modernizationefforts?Truth- Modernization project should include strong partnershipsMODERNIZATION TRACKHCL’ s Legacy modernization methodology consist of 4stages-• Planning –Planning stage includes Assessment and Strategizing the Solution. –– This involves number of steps- –– Identify the issues that need to be addressed in Legacy system. –– Identify the Risk involved in migration. –– To-be architecture definition, which will recommend a future state architecture that is best, suited to address all the issues and risks. –– Modernization strategy, which is the decision making step to finalize the solution.• Transform-Includes Proof of concept and transformation implementation. –– Modernize POC Module to validate the strategy. –– This will act as the gateway for the implementation of the solution. Transformation includes modularize the Legacy application and then Re-write/Reface/Extend• Validation- The functional and non-functional testing is done to validate the application.• Implementation- It includes deployment, parallel run,transition and res-skilling process Transformation Life Cycle Stage 4: Stage 1: Planning Stage 2: Transform Stage 3: Validation Implementation Transformation Proof of Assessment Transform Test Deploy Strategy Concept Gate Retrofits  Transformation Modernized  Analyze POC Module  Deployment Source System Plan Integration,  Options Reface/   Parallel run  Risk Analysis  Approach Validate Re-write,  System Test,  Requirements Modularize  Transition  Deliverables Strategy Refactor,  UAT  Assess  Decommission Extend  Non-functional Transformation  Effort estimate  Reskilling Objectives  Cost, Timeline Tools Management, Issue Management Set Transformation Goals and Critical Success Measures Review and Control Transformation Activities Knowledge Management – Build Knowledge Repository Quality and Risk Management Project Governance and Communications Management© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  7. 7. 7Legacy Modernization | June 2012SOLUTIONSIntegration via Service -oriented approach-Integration of Legacysystem with other newer distributed systems in a service –orientedapproach is the process of exposing business logic and dataembedded in legacy programs as well defined, reusable service. Soservices designed on SOA principles can be integrated in any Legacyapplication layer. The technique can be Screen Scrapping, Businesslogic integration or data integration technique.Re-hosting- is a non- invasive approach of migrating a Legacy systemto a new hardware platform. In Re-hosting the business logic anddata of Legacy application remains intact in the new platform. Itis often necessitated by the increasing power of the contemporarysystem and the steady increase in the cost of Legacy system.Re-engineering- is the bing bang approach to modernizing system.It seeks to understand the existing system from code and processperspective, design viable models and build new application onthat basis. It is ideal way to capture organizational knowledge andmigrate to new platform. Re-engineering is a two phase approach-The first comprises of reverse engineering design and code artifactsusing tools. The second phase comprises of forward engineeringto a new platform and architecture, incorporating new businessrequirements and functionalities.Package implementation- is replacement of legacy applications, inwhole or part, with off-the-shelf software (COTS) such as ERP,CRM, SCM, Billing software etc. This includes replacing thehome grown business applications with third party componentor application. This sometimes can be challenging because thesepackages offer standard domain business process. Ideal way is toreengineering or customizing these packages and rewriting businesslogic. This is time consuming and expensive initially but drasticallyreduces the maintenance and enhancement cost and give gooddividends over a period of time.TRANSFORMATIONAL PERSPECTIVE Technique Re-facing Extend Full re-write/ New package Parameter Solution feasibility Easy Moderate Challenging Ease of Use for Business Low Moderate High Retaining current Bus High High Huge effort Proc Performance High Medium Low Compliance to Target Low Good High Architecture New Infrastructure Low Medium High. Required Reuse of existing IT High Moderate Low Resources Effort Investment Low Medium High Overall Risk Low Medium High Tooling options/ Vendor Hats, Jwalk , IBS –XT Java Tool box, Rdi 7.5 Java, J2EE, C#, .Net Solution consideration Run time license required No runtime Runtime Framework by Vendor© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  8. 8. 8Legacy Modernization | June 2012WHICH SOLUTION IS BEST?Choosing the best strategy (or combination of strategies) is non-trivial, and involves understanding the business case, schedule goals,resources available, residual value in the legacy assets, technicaldetails of the application implementations and deployments, andappetite for assuming IT risk.There is no single path from where you are to where you want togo, if indeed you have identified your destination platform. Instead,there are often multiple alternative paths, and no single alternativemay constitute the obvious choice. Each path will have advantagesand disadvantages, and each must be weighed appropriately in thecontext of your unique organization. There is no one-size-fits-allanswer.FACTORS DETERMINING RIGHT MODERNIZATION SOLU-TION-Cost of Migration- The total cost incurred (Hardware, Software andprofessional service charges) in migrating using a given technique.Effort of Migration –The total effort involved (Internal, by the clientand external by professional service providers) in migrating usingthe given technique.Elapsed time for migration – The time taken from the beginningof the migration program to the implementation of the migratedapplication by using the given technique.Legacy Investment Reuse – The extent to which existing Legacysystem can be reused in the To-Be systemUser Experience – The user experience of the modernized To-Besystem in comparison to existing system.Business Process change-The Quantum changes required to optimizethe current systemSkill Set – Skills required to support and enhance the system infuture, after modernizing the existing system.Business Functionality –How the modernized To-Be system cansolve business requirements.Dependency on Legacy Platform- This factor determines thedependency with legacy system exist post modernization.Risk Mitigation- Risk involved in each of the solution for thebusiness.© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  9. 9. 9Legacy Modernization | June 2012About HCLAbout HCL TechnologiesHCL Technologies is a leading global IT services company,working with clients in the areas that impact and redefinethe core of their businesses. Since its inception into theglobal landscape after its IPO in 1999, HCL focuses on‘transformational outsourcing’, underlined by innovationand value creation, and offers integrated portfolio ofservices including software-led IT solutions, infrastructuremanagement, engineering and R&D services and BPO. HCLleverages its extensive global offshore infrastructure andnetwork of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including FinancialServices, Manufacturing, Consumer Services, Public Servicesand Healthcare. HCL takes pride in its philosophy of‘Employees First, Customers Second’ which empowers our82,464 transformers to create a real value for the customers.HCL Technologies, along with its subsidiaries, has reportedconsolidated revenues of US$ 4.0 billion (Rs. 19,412 crores),as on 31 March 2012 (on LTMbasis). For more information,please visit www.hcltech.comAbout HCL EnterpriseHCL is a $6.2 billion leading global technology and ITenterprise comprising two companies listed in India - HCLTechnologies and HCL Infosystems. Founded in 1976, HCL isone of India’s original IT garage start-ups. A pioneer of moderncomputing, HCL is a global transformational enterprise today.Its range of offerings includes product engineering, custom& package applications, BPO, IT infrastructure services, IThardware, systems integration, and distribution of informationand communications technology (ICT) products across a widerange of focused industry verticals. The HCL team consists ofover 90,000 professionals of diverse nationalities, who operatefrom 31 countries including over 500 points of presence inIndia. HCL has partnerships with several leading global 1000firms, including leading IT and technology firms. For moreinformation, please visit www.hcl.com© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.

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