Key points:

Application Modernization on the Cloud enables traditional businesses to compete with the new Born in the Cloud (BIC) ventures.

It especially enables the traditional industries, such as Banking, Financial Services, and Insurance in their joint go to market initiatives with BIC institutions.

Application Modernization enables seamless innovation over the Cloud with feature upgrades in an agile environment. It reduces innovation cycle time from months to days.

Introduction

The customer fraternity are technology users in their day to day lives. They are highly influenced by the Big Technology companies in their daily operations as the BigTech including Amazon, Google, Meta, and Apple cast a lasting influence on their operations. Today, Customer Experience is the major driver of change. Seeking proactive reviews and feedback from the customer base enables businesses to adapt to change in a gradual and controlled manner. It allows to systematically improve the customer experience. Application Modernization on Cloud is the first step in the direction of innovation especially in traditional business environments, such as banking, financial services, and insurance (BFSI).

Application Modernization on Cloud – Banking, Financial Services, and Insurance sector

The drivers of change for Application Modernization on Cloud though primitive have assumed a renewed importance due to the frequent geo-political instabilities and market disruptions. These drivers are accelerating the pace of Cloud adoption and Application Modernization on the Cloud. Some of these drivers are –

• Business growth: Legacy systems are not flexible enough to increase capacity for operations or the geographical reach. Application Modernization enables capacity building to support growth and expansion. It supports both horizontal and vertical expansion
• Data democratization: Operations involving legacy applications are siloed at the system level. Application Modernization allows unlocking the application data. Unlocking the data fuels cross-selling / up-selling. It results in revenue generation and growth.
• Innovation: Digital operations over the Cloud are the harbingers of innovation. Application Modernization on Cloud unlocks the path towards innovation. It opens the path of seamless digital operations for traditional BFSI businesses.
• Digital transformation: Monolithic applications are inflexible. However, Application Modernization on Cloud is based on microservices architecture and containerization. This transformation provides high application agility and velocity. It enables traditional businesses to compete with BIC ventures and also enter into joint go to market initiatives on a strong footing.
• ·Scalability of operations: Legacy applications are not scalable whereas Cloud modernized applications are highly scalable due to the integral advantages of the Cloud Native environment. With the improved capacity building, the modernized legacy applications easily fulfill increasing requirements of infrastructure on the path of their growth trajectory.
• Application integration: Legacy applications do not support integration with other applications. Application Modernization allows integration with other applications by using APIs. It paves the way for business transformation.

Application Modernization – The Advantages

Traditional businesses, such as BFSI institutions, benefit through the improved application agility and velocity. It supports innovation at scale accompanied by a faster return on investment. The most important advantages of Application Modernization on Cloud are –

• Application scalability: It supports high concurrent loads due to the scalability offered by the Cloud Native environment. The reconstruction of the application over a microservices architecture and containerization improves the application velocity by manifolds.
• Dynamic innovation: Application Modernization enables businesses to build innovative features in a dynamic environment. It improves the upgrade time from months to days and days to hours. It helps the businesses to compete with the new age BIC businesses.
• Improved efficiency: It improves application availability and efficiency by manifolds. The Cloud Native environment has a distributed architecture. It enables maximum uptime due to which disruptions don’t affect application availability and significantly improve the business continuity.
• Secure environment: The application architecture is supported by end-to-end encryption. 
• New growth opportunities: As the modernized application enables frequent feature upgrades and has an improved capacity and compute power, it supports new business opportunities.
• Anywhere business: The Cloud Native environment supports anywhere business paradigm in a secure business environment. As a result, the modernized legacy applications can be easily accessed over the internet through a secure framework.

Seamlessly collaborate with your business ecosystem, vendors, and customers through Cloud F&A applications. Read how Cloud Edge F&A applications amplify user experience and penetrate supply chains >> Cloud Edge F&A applications enable businesses to collaborate with their vendors and customers. These applications impact user experience through digital transformation. It provides a digital platform for supply chain penetration that ultimately influences growth. The Cloud Edge F&A applications position the business as a growth engine and enables supply chain penetration due to improved transactional velocity. This integration of people, process, and technology fortifies the enterprise ecosystem and supporting framework. It enables active risk management in an agile environment. Cloud Edge F&A applications can be managed in a BPaaS model. F&A BPaaS can be leveraged in multiple use cases – order management or order to cash operations, procurement automation or procure to pay operations, record to report operations, etc. Cloud F&A BPaaS model improves time to market and time to value, reduces the total cost of ownership, improves the user experience by manifolds, exponentially improves process efficiency, improves the real-time process visibility, enables application integration with core systems and Cloud-based third party taxation engines. This Cloud F&A BPaaS paradigm paves the way for seamless backward and forward integration and takes the stakeholder collaboration to an entirely new level. They not only set the right foundation for expansion and growth but improves the cash flow across the closely integrated ecosystem.

In summary

Application Modernization on the Cloud plays the role of business enablement and accelerator for traditional businesses in the BFSI sector. It is driven by the microservices architecture and containerization. The improved operational efficiency and agility allows them to compete with modern BIC businesses. It imparts a solid footing to them especially during joint go-to-market initiatives and supports business growth.