{"id":36874,"date":"2024-10-10T08:00:00","date_gmt":"2024-10-10T15:00:00","guid":{"rendered":"https:\/\/azure.microsoft.com\/en-us\/blog\/?p=36874"},"modified":"2024-10-10T14:09:31","modified_gmt":"2024-10-10T21:09:31","slug":"achieving-ai-readiness-through-comprehensive-modernization","status":"publish","type":"post","link":"https:\/\/azure.microsoft.com\/en-us\/blog\/achieving-ai-readiness-through-comprehensive-modernization\/","title":{"rendered":"Achieving AI readiness through comprehensive modernization"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Generative AI is sending shockwaves through the business world, due in no small part to powerful tools that are transforming how we live and work. As with prior massive paradigm shifts, successful businesses must adapt for the future.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When businesses infuse cutting-edge innovations like AI into their operations, it can drive sustainable, long-term growth, futureproof them against economic headwinds, and create lasting competitive advantage. <strong>While the market dialog is dominated by incredible new AI-driven services, there is untapped value in the hundreds of millions of existing applications that can now be <\/strong><a href=\"https:\/\/azure.microsoft.com\/en-us\/solutions\/build-modernize-intelligent-apps\/\"><strong>modernized and infused with AI<\/strong><\/a><strong>.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Without modernization, organizations may miss out on the full value of their investments, lag behind the competition, or fall prey to costly disruptions\u2014and they certainly won\u2019t be positioned to develop tomorrow\u2019s leading AI innovations. Pitfalls like these are already a reality for many: according to the <a href=\"https:\/\/info.microsoft.com\/ww-landing-forrester-unlock-competitive-advantage-with-app-mod.html?lcid=en-us\" target=\"_blank\" rel=\"noreferrer noopener\">Forrester study exploring modernization,<\/a> one in four business decision-makers experienced digital platform failures due to modernization challenges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because true modernization can (and should) touch every area of your business, it gets complex, involving everything from processes and systems to orchestration and strategic planning. As a result, many leaders aren\u2019t sure where to begin\u2014which is why we\u2019ve created this blog series to chart a course through modernization with AI readiness in mind.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this first blog, I\u2019ll cover what modernization really means, why it matters for your business, and how to think about modernization as your path to AI value.<\/p>\n\n\n\n<aside class=\"cta-block cta-block--align-left cta-block--has-image wp-block-msx-cta\" data-bi-an=\"CTA Block\">\n\t<div class=\"cta-block__content\">\n\t\t\t\t\t<div class=\"cta-block__image-container\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"850\" height=\"567\" src=\"https:\/\/azure.microsoft.com\/en-us\/blog\/wp-content\/uploads\/2024\/10\/img.png\" class=\"cta-block__image\" alt=\"Man sitting at desk\" srcset=\"https:\/\/azure.microsoft.com\/en-us\/blog\/wp-content\/uploads\/2024\/10\/img.webp 850w, https:\/\/azure.microsoft.com\/en-us\/blog\/wp-content\/uploads\/2024\/10\/img-300x200.webp 300w, https:\/\/azure.microsoft.com\/en-us\/blog\/wp-content\/uploads\/2024\/10\/img-768x512.webp 768w\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" \/>\t\t\t<\/div>\n\t\t\n\t\t<div class=\"cta-block__body\">\n\t\t\t<h2 class=\"cta-block__headline\">Application and Data Modernization: Azure<\/h2>\n\t\t\t<p class=\"cta-block__text\">Accelerate time to market, deliver innovative experiences, and improve security with Azure application and data modernization.<\/p>\n\t\t\t\t\t\t\t<div class=\"cta-block__actions\">\n\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/azure.microsoft.com\/en-us\/solutions\/application-and-database-modernization\"\n\t\t\t\t\t\tclass=\"btn cta-block__link btn-link\"\n\t\t\t\t\t\t\t\t\t\t\t>\n\t\t\t\t\t\tModernize here\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/aside>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"modernization-is-a-holistic-approach\">Modernization is a holistic approach&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The first step on your modernization journey is to get clear about what differentiates modernization from more piecemeal approaches. <strong>Modernization means updating and improving assets across all business areas so they work well with evolving digital software and the cloud.<\/strong> This is a holistic approach that includes people, processes, and skillsets along with data, apps, and infrastructure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"modernization-breathes-new-life-into-legacy-technologies-to-prime-them-for-ai\">Modernization breathes new life into legacy technologies to prime them for AI<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier I mentioned that modernization is critical to the future of your business\u2014let\u2019s give a little background as to why. For decades, businesses grew up alongside purpose-built digital solutions that met the needs of the day. These solutions are now struggling to meet current needs. For example, they can\u2019t easily incorporate the latest AI capabilities because they weren\u2019t built for fast-paced innovation cycles. This tech also often works in siloes and may not be able to process large amounts of data to support the latest intelligent services. Take it from <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1599806854373491262-sapiens-insurance-azure\" target=\"_blank\" rel=\"noreferrer noopener\">Sapiens<\/a>, an insurance platform provider across thirty countries: they struggled to innovate because their digital practices were established before they adopted the cloud.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Modernization helped Sapiens overcome these issues and prime their operations for AI innovation<strong> <\/strong>by migrating, transforming, and distributing their key applications. This allowed them to accelerate their development processes and their innovation cycle, since developers could devote more time and resources to improvements rather than maintenance. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-default is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-large-font-size wp-block-paragraph\">&#8220;Using and investing in Microsoft Azure tools to automate some of our infrastructure and processes, we managed to cut our time to market in half and reduced our operational overhead by at least 40 percent.&#8221;\u2014Michael Mirel, Head of Cloud and DevOps Center of Excellence at Sapiens.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">They\u2019re not alone\u2014according to an <a href=\"https:\/\/info.microsoft.com\/ww-landing-benefits-of-cloud-migration-and-modernization.html?lcid=\" target=\"_blank\" rel=\"noreferrer noopener\">IDC survey on the benefits of cloud migration and modernization<\/a>, 41% of organizations cite operational efficiency and 30% cite cost savings as the top outcomes achieved. When businesses take this technology posture, they lay the groundwork for AI and analytics innovation and more agile operations.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"modernization-starts-with-the-cloud-but-it-doesn-t-end-there\">Modernization starts with the cloud, but it doesn\u2019t end there&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Migrating to the cloud is essential (30% of respondents in that same IDC survey reported the cloud eased modernization), but think of the cloud as just one aspect of driving scale, achieving long-term outcomes, and unlocking the potential of technologies like AI.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Take <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1769926575915161554-scandinavian-azure-other-en-sweden\" target=\"_blank\" rel=\"noreferrer noopener\">Scandinavian Airline Systems<\/a> (SAS) as a case study. They incorporated the cloud as part of SAS Forward, a broad strategy to help adapt to changing market dynamics and cost pressures. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-large-font-size wp-block-paragraph\">\u201cThe airline industry is highly competitive, to continue to provide great experiences for travelers, we needed to make big changes.\u201d\u2014Mikael Perhult, Tech Lead, Cloud at SAS &#8211; Scandinavian Airlines.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s why SAS Forward went beyond cloud migration, modernizing SAS\u2019s databases and apps as a fully managed platform service on Azure. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-large-font-size wp-block-paragraph\">\u201cWe wanted to transform the technologies that support and connect SAS\u2019 systems and services for greater scalability, efficiency, and security, while paving the way for innovation for our customers.&#8221;\u2014Prakash Ujjwal, Senior Systems Specialist, IT Infrastructure Services.&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Just as SAS went beyond initial migration, they also had to go beyond the tech itself. This meant a thoughtful reimagining of how their operations could be modernized to maximize investment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"modernization-reshapes-more-than-technology\">Modernization reshapes more than technology&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While apps and platforms are <a href=\"https:\/\/azure.microsoft.com\/en-us\/solutions\/application-and-database-modernization\">essential to modernization<\/a>, businesses should also align their people, processes, and skillsets to ensure the entire enterprise is working toward the same goal. This is especially true with AI, since it creates a new way of working that disrupts long-standing routines. In other words, AI is both a catalyst for modernization and accelerator of modernization.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The research behind the Forrester <a href=\"https:\/\/clouddamcdnprodep.azureedge.net\/gdc\/gdct3g2zT\/original\" target=\"_blank\" rel=\"noreferrer noopener\">Application Modernization Checklist<\/a> supports this idea. One in five decision-makers reported achieving modernization, and those who succeeded said they did so because they looked at the task holistically. They built a clear strategy around AI and AI training, tied AI closely to business outcomes, and used cross-org metrics to track and measure progress and impact. And crucially, they drew on support from their strategic partners to upgrade their technology stacks\u2014modernization is too important and too complex to tackle alone. SAS embodied this holistic approach by setting goals to transform operations and maintenance, increase overall innovation, and leverage partners to get more out of their initial cloud investments. They succeeded and streamlined developer workflows to enable continuous improvement while modernizing airline operations at scale.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/azure.microsoft.com\/en-us\/solutions\/application-and-database-modernization\">Modernize on your terms<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-right-modernization-approach-unlocks-competitive-advantage\">The right modernization approach unlocks competitive advantage&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When businesses take a truly holistic approach to modernization, transformative outcomes speak for themselves. Sapiens reports that they\u2019re able to <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1599806854373491262-sapiens-insurance-azure\" target=\"_blank\" rel=\"noreferrer noopener\">extract deeper insights more easily and drive more effective business decisions<\/a>, while SAS built an environment that fosters long-term innovation and has improved customer experiences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>I invite you to continue charting a modernization course with me in the next blog in our series. We\u2019ll walk through specific steps for effective modernization identified by the Forrester Consulting <\/strong><a href=\"https:\/\/clouddamcdnprodep.azureedge.net\/gdc\/gdct3g2zT\/original\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Application Modernization Checklist<\/strong><\/a><strong> that Microsoft commissioned.<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">Download the <a href=\"https:\/\/info.microsoft.com\/ww-landing-forrester-unlock-competitive-advantage-with-app-mod.html?lcid=en-us\" target=\"_blank\" rel=\"noreferrer noopener\">2024 commissioned Forrester Consulting study<\/a>: Unlock Competitive Advantage with Application Modernization.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">Read the accompanying <a href=\"https:\/\/clouddamcdnprodep.azureedge.net\/gdc\/gdct3g2zT\/original\" target=\"_blank\" rel=\"noreferrer noopener\">Application Modernization Checklist<\/a>.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">Learn about the <a href=\"https:\/\/info.microsoft.com\/ww-landing-benefits-of-cloud-migration-and-modernization.html?lcid=\" target=\"_blank\" rel=\"noreferrer noopener\">benefits of cloud migration and modernization<\/a> from IDC.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">Consult the <a href=\"https:\/\/azure.microsoft.com\/en-in\/solutions\/application-and-database-modernization\/#tab2xdf1c37a9c9364af2b50f3a939aa90d66\">Microsoft Application and Data Modernization: Azure<\/a> page.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">Visit the <a href=\"https:\/\/azure.microsoft.com\/en-us\/solutions\/migration\/migrate-modernize-innovate?ef_id=_k_767295261cb9182fc8fff3e2da002fc5_k_&amp;OCID=AIDcmme9zx2qiz_SEM__k_767295261cb9182fc8fff3e2da002fc5_k_&amp;msclkid=767295261cb9182fc8fff3e2da002fc5\">Microsoft Azure Innovate<\/a> site.&nbsp;<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>I\u2019ll cover what modernization really means, why it matters for your business, and how to think about modernization as your path to AI value.<\/p>\n","protected":false},"author":39,"featured_media":36888,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ms_queue_id":[],"ep_exclude_from_search":false,"_classifai_error":"","_classifai_text_to_speech_error":"","_alt_title":"","footnotes":"","msx_community_cta_settings":[]},"categories":[1454],"tags":[2671],"audience":[3072,3054,3057],"content-type":[1481],"product":[],"tech-community":[],"topic":[],"coauthors":[2826],"class_list":["post-36874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-machine-learning","tag-ai","audience-ai-professionals","audience-business-decision-makers","audience-data-professionals","content-type-thought-leadership","review-flag-ai-driven-ai-driven-2","review-flag-fall-1680286584-980","review-flag-forre-1680286585-445","review-flag-idc-1680286585-291","review-flag-lever-1680286579-649","review-flag-new-1680286579-546","review-flag-percent"],"yoast_head":"<!-- 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