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Is Moving a Legacy System to AWS Worth It?

Deepak Prasad Landigi

In the fast-paced realm of digital transformation, clinging to outdated legacy systems can feel like steering a ship with a broken rudder. Research from McKinsey reveals that businesses running on legacy systems face up to 40% higher operational costs and are 60% more likely to experience severe downtime. These systems, once ground-breaking, now become albatrosses around the neck of innovation, stifling agility and hampering growth.

Enter cloud technology—a game-changer that offers unparalleled opportunities for modern enterprises. The cloud enables businesses to scale effortlessly, enhance security, and tap into a treasure trove of advanced services like artificial intelligence and data analytics. According to Gartner, organizations that migrate to the cloud see an average of 25-30% improvement in operational efficiency and a 40% reduction in time-to-market for new applications.

So why AWS (Amazon Web Services)? With its robust suite of services, unmatched scalability, and a network of data centers worldwide, AWS stands out as the beacon of cloud excellence. Moreover, AWS provides an extensive array of tools and solutions, from AWS Lambda for serverless computing to Amazon S3 for virtually limitless storage, enabling businesses to innovate faster and more securely. Additionally, AWS’s commitment to reliability and security, as evidenced by its extensive compliance certifications and uptime guarantees, makes it a preferred choice over other cloud providers.

AWS has 1 million active users. It provides over 175 fully-functional services.

The Public Cloud Software (SaaS) revenue is said to reach 232bn USD.

As per a report, the market share of AWS was 33% during the fourth quarter of 2022.

80% use hybrid clouds, 7% use multiple public, and 2% use multiple private clouds. Thus, users have been trusting the multi-cloud system.

The cloud security market is said to reach $ 37 billion by 2026.

The Imperative of Migrating Legacy Systems

Migrating to modern cloud platforms is no longer just an option; it’s a strategic imperative. Legacy systems, while reliable and familiar, often come with significant drawbacks:

High Maintenance Costs: Maintaining outdated hardware and software can be expensive. According to Gartner, organizations spend approximately 70-80% of their IT budgets on maintaining legacy systems, leaving limited resources for innovation and growth.

Limited Scalability: Legacy systems typically lack the flexibility to scale efficiently in response to changing business needs. This rigidity can hinder an organization’s ability to respond swiftly to market demands.

Security Vulnerabilities: As legacy systems age, their security mechanisms become increasingly outdated, making them more susceptible to cyber threats. McKinsey reports that 60% of organizations with legacy systems experience more frequent security breaches than those with modern systems.

Business Benefits of Migrating to AWS

Source: https://aws.amazon.com/products/migration-and-transfer/

With AWS’s global infrastructure and cutting-edge technology, businesses are not just adapting to the future but are actively shaping it. Migrating to AWS offers a wealth of benefits:

1. Cost Efficiency

AWS operates on a pay-as-you-go pricing model, reducing the need to make significant upfront investments in hardware and other ongoing operational costs. According to a Forrester study, organizations that migrated to AWS achieved a 31% reduction in overall IT costs. The ability to scale resources accordingly based on demand further enhances cost efficiency, ensuring you only pay for what you use.

2. Enhanced Scalability and Flexibility

One of AWS’s core advantages is its scalability. Unlike legacy systems, which often require significant lead time and capital to scale, AWS allows organizations to adjust their resources dynamically. A report by IDC highlights that 63% of organizations see improved scalability and agility after migrating to AWS, enabling them to handle fluctuations in demand better and quickly adapt to new business requirements.

3. Improved Security and Compliance

AWS provides a robust security framework with tools like AWS Key Management Service (KMS), AWS Identity and Access Management (IAM), and AWS Shield for DDoS protection. According to AWS’s own data, 96% of AWS customers believe that AWS provides better security than their previous on-premises environments. Additionally, AWS’s compliance certifications and continuous updates ensure that your data is protected and regulatory requirements are met.

4. Accelerated Innovation

Migrating to AWS unlocks various cutting-edge technologies, including machine learning (ML), artificial intelligence (AI), and big data analytics. Organizations can leverage these tools to drive innovation and gain a competitive edge. For example, Netflix, which runs on AWS, utilizes AWS’s AI and ML capabilities to enhance content recommendations and optimize streaming quality, leading to a more personalized user experience.

Use Cases Demonstrating the Value of Migrating to AWS

1. Capital One: Modernizing Legacy Banking Systems

Capital One, a leading financial institution, embarked on a major migration project to move its legacy banking systems to AWS. The transition enabled Capital One to reduce operational costs by 40% and increase development speed by 300%. AWS’s scalability allowed Capital One to handle millions of transactions daily without performance degradation, enhancing customer satisfaction and operational efficiency.

2. GE Healthcare: Enabling Data-Driven Healthcare Solutions

GE Healthcare migrated its imaging and diagnostics platforms to AWS, leveraging its extensive storage and processing capabilities. This migration enabled GE Healthcare to analyze vast amounts of medical data in real time, improving diagnostic accuracy and accelerating the development of new healthcare solutions. The move also reduced data processing time by 60%, demonstrating AWS’s impact on enhancing healthcare delivery.

3. Adobe: Transforming Creative Cloud with AWS

Adobe’s Creative Cloud suite, which serves millions of users globally, was migrated to AWS to improve performance and scalability. The migration enabled Adobe to deliver a seamless user experience by ensuring high availability and low latency. Additionally, the move to AWS facilitated the integration of new features and updates, enhancing Adobe’s ability to innovate and meet evolving customer needs.

The Path Forward: Evaluating Your Migration Strategy

Deciding to migrate legacy systems to AWS requires careful planning and consideration. Here are some steps to ensure a successful migration:

Assess Your Current Environment: Conduct a thorough evaluation of your existing systems, data, and applications. Identify the components suitable for migration and those that may require reengineering.

Develop a Migration Plan: Create a comprehensive migration strategy that includes timelines, resource allocation, and risk management. AWS offers various tools, such as the AWS Migration Hub, to assist in planning and executing your migration.

Leverage AWS Tools and Services: To facilitate a smooth transition, utilize AWS’s suite of migration tools and services, such as AWS Database Migration Service (DMS) and AWS Application Migration Service (MGN).

Conclusion

Migrating legacy systems to AWS is not merely a technological upgrade but a strategic move towards enhanced efficiency, scalability, and innovation. The benefits of reduced costs, improved security, and accelerated innovation make a compelling case for transitioning to the cloud. By examining successful use cases and leveraging AWS’s powerful tools, organizations can overcome the limitations of legacy systems and position themselves for future success in the dynamic digital landscape. As technology evolves, embracing cloud migration with AWS is a decisive step toward unlocking new opportunities and driving sustained growth.

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