This document discusses modernizing legacy applications through digital transformation and cloud migration. It outlines two common approaches - a "lift and shift" to the cloud or a full rewrite. Both have challenges. An alternative approach is proposed that uses tools to extract business rules and rearchitect the application for the cloud in a controlled, repeatable way to reduce costs and risks compared to a manual rewrite. This differentiated approach could help capture more managed services business from clients over time.

1. Modernization/Digital/Could as business scaler
Created by Joshua Fox
704.649.6384
Joshua_Fox@Ymail.com
• Assumptions:
o Managed Services is a sustainable business Model
o The Market for managed Services/Support has become progressively more
competitive with fewer open competition opportunities
o Managed Services has sustainable profitability
• Objectives:
o Increase Managed Services Revenue
§ New Clients
§ Additional Scope within existing Base
o Increase Managed Services Margins
o Differentiated Model
§ Tools
§ Methodology
§ Process
Case Study
Client wants to make changes to an application that includes any combination of Digital,
Cloud Migration and/or Legacy Modernization. Current application is expensive to
maintain and difficult to meet business requirements but pursuing a typical cloud
migration is not practical due to the lock-in of the aged technical infrastructure of the
application. Current vendor is telling client that the application is too complex and client
needs their [current vendor] people to rewrite the application in new technology, but client
has concerns about the risk of disruption to business critical operations if the rewrite fails
to deliver 100% of current functionality, and seeks alternative approaches.
6 Vendors respond with proposals to move application to cloud and rewrite the
application. Proposals include solutions based on 2 common project patterns each of
which have unique challenges:
• Solution 1:
o “Lift and Shift” Approach
§ Emulate current Application technical environment and move to
cloud
o Challenge
§ Cloud will reduce infrastructure cost but there will be no
improvements to the maintainability of the application
• Solution 2:
o Rewrite Approach
§ Provide a team with each person billable throughout the entirety of
the project for a manual rewrite and migration from old to new
o Challenge
§ Technical Risk: This is typical of most providers who do not have a
reliable and repeatable methodology;
§ Business risk: too many instances of late delivery, budget overruns
and functionality shortfalls, with disproportionate impacts on
business operations
§ Budget: T&M/body count approach is expensive

2. Unsolicited Proposal
Client has an existing application and/or suite of applications that are not managed
efficiently. Mainframe applications are not digital capable. Applications are supported
manually with a legacy approach by another vendor using very minimal tools and no
automation.
Differentiated Model
• Understanding the application
o Use IP and tools to extract business rules, functional dependencies and
database schema
• Use Tools with repeatable process
o All technical benefits of a rewrite, including integrated digital capabilities and
substantially reduced cost of downstream maintenance
o Control Cost
o Firm and credible delivery schedule
o Eliminate Risk [we can really do this]
• Deploy to cloud
o Application will be properly re-architected for cloud environment, leveraging
automation to work efficiently on cloud with quality, maintainable code
• Cost
o With tools like ResQSoft, Client can Modernize more applications; faster
• Maintenance
o The more of these applications Provider can Modernize and move to the
cloud the better positioned they will be to displace incumbent provider and
capture downstream managed services on these applications
o Financials: Using the same tools to execute the migration, Syntel will be more
competitive
§ Price can be lower
§ Margin will be higher
• Business
o Win rate will increase substantially
o Unsolicited proposals around known underperforming applications
o Ratio: 1/10
§ For every Million in Modernization there is a potential 10 million
dollars in capturing managed services business over the course of 3
years.
o Modernization could reduce clients’ run rate cost for managed services over
3 to 5 years and while effectively lowering MRC to client, include a scheduled
modernization and cloud migration as a part of the managed services
contract.