Cost containment and a need to ensure future technology compatibility are the driving factors behind modernization and migration efforts, a new study finds. Cary, N.C.-based BluePhoenix Solutions commissioned Forrester Consulting, Cambridge, Mass., to survey the attitudes of 100 North American firms in a broad range of industries, including insurance, about their migration plans.
With ongoing operation and maintenance costs (66%) far outstripping the costs of new software initiatives and projects (35%), the survey found IT leaders anxious to excise waste from their application portfolios and to create more homogeneous technology stacks. As the specter of the labor costs for maintenance becoming costlier as babyboomers reach retirement age and certain skills become scarcer, the overall cost of servicing legacy technology going forward was prominent in respondents' minds. Indeed, fears about the current (27%) and future (29%) availability of skilled resources were cited among top drivers for migration efforts.
The current economic climate was also a motivator, with IT leaders indicating that maximizing the value of existing software assets is now a top priority. Respondents cited the economy as a primary driver for increased emphasis on migrating from languages, platforms and databases, and on retiring duplicate/obsolete applications.
The numbers also revealed that modernization budgets remain healthy, with 86% of firms queried indicating that they have allocated 10% or more of their IT budget for modernization.
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