As Vice President of Channel Cloud, I oversee our partner channel, services and new vendor services from Microsoft, AWS, Workplace and BOX.
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At the height of the global Covid-19 crisis, I remember reading about the state government of Connecticut desperately seeking out engineers fluent in legacy programming languages (COBOL, in this instance).
Newspapers around the country were stunned that one of the wealthiest states was reliant on obsolete technology. Although I didn't expect Connecticut to be 40 years behind on technology, I am by no means shocked. We deal with this obsolete software and technology every day. Tried-and-tested software pervades industries because of the fear of the unknown concerning new, unproven software and technologies as well as lack of knowledge and readiness. But right now is the best time to modernize current trusted applications instead of moving to untested, but modern applications. Independent software vendors (ISVs) of all sizes frequently move legacy software to the cloud; the tricky part is maintaining cost efficiency. I have to say that the term ISV is not really relevant anymore since almost all companies today have an in-house software solution, homemade or built by a technology partner that aims at optimizing their business, servicing their customers better, and providing better information about their business.
When we think of software vendors, our minds go to Microsoft or Adobe, but there are thousands of incredibly niche software creators out there. As the world pushes further into distributed networks and workforces, these partners, which I would like to refer to as software technology creators (STC), do not always sell their applications at scale. The key differentiator is that an ISV needs to productize and sell its application where the STC already has a buyer, namely themselves.
ISVs or STCs have one key aspect in common: They face sink-or-swim scenarios regardless of their size and market. Believe it or not, but there is still software installed on individual computers and servers under desks, in closets and in data centers.
Yes, it's true; not all software is SaaS or a web app. Digital modernization into the cloud should not be seen as a crutch to get legacy software back to its former glory. Digital modernization is like a pair of wings that enable you to get from A to B faster and with less hassle. The whys and hows aren't necessary; we can all agree that there is a significant advantage to cloud software and that STC should work to get their products into a cloud environment. The question, however, remains when and how.
Most STCs have great technologists, especially on the development side of things, which makes sense since they are building an application. However, most STCs are not infrastructure providers, as they are not running and managing the application — they most often outsource that to MSPs. The public cloud was a great solution for them, but repeatedly, the small print was seldom read, and they now end up with the cost and a daunting task that no one wants to touch.
Yes, the STCs that normally are first-movers have bought into the hype the large hyperscalers and often moved to the cloud with legacy applications that have not been optimized and modernized for cloud, resulting in multiple risks, including cost, operational and management issues.
No STC should find their customers in the situation that the state of Connecticut found itself. What does it take to get legacy software to the cloud? There are many moving pieces, or whatever the digital version of that phrase is, but in the end, the most out-of-control cost comes from licensing the cloud infrastructure, which will grow aligned with the use of the application. Half of this has to do with unsuccessful planning and scaling, and the other half has to do with the cloud being a blanket statement covering many different feature sets. The cloud includes servers, artificial intelligence, machine learning, instances licensing and much more.
Cost efficiencies are perhaps the most crucial element for an STC looking to modernize. But costs aren't the only scenario preventing digital modernization for STCs. STCs are also seeing roadblocks in the form of:
• Limited market data.
• Lack of vision.
• Fear of the unknown.
Obviously, while traditional lift and shift is a tried methodology of getting legacy applications to a modern platform, this is only the first step toward digital modernization and will just exchange one infrastructure platform with another. We also want to ensure that the application takes advantage of the available cloud services by using inbuilt services and architectural patterns while updating the application code to gain the most out of the modernization effort.
With these scenarios, bringing in a third party to research and report on the full picture is critical to maintaining the status quo within the marketplace. Modernization shouldn't only push homeostasis, but in some cases, when faced with extreme reluctance to change, staying on the same course is the most effortless transition.
It doesn't take a crystal ball to tell you that change is coming. Some parts of the world have reopened since closing down from the coronavirus, and in other parts, it's beginning to close down again. STCs should take note and strategize how and when is the right time to move legacy software to the cloud. There is something sexy about tried-and-tested software being nipped, tucked and remade into a service model version of its prior self. STCs seeing themselves as remaining profitable throughout the transitionary period we are in should look to the cloud to gain a formidable position this year and beyond.
Whatever you do, don't see the move to the cloud as an end-result by itself; this is only the first step on the digitization modernization journey. Ensure that you understand what you are starting on by partnering with someone who understands cloud infrastructure and cost complexities and who can help you achieve your goals more quickly and more efficiently than you could by yourself.
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