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Modernization/Digital/CouldasbusinessscalerCreatedbyJoshuaFox
• Assumptions:
o ManagedServicesisasustainablebusinessModelo TheMarketformanagedServices/Supporthasbecomeprogressivelymore
competitivewithfeweropencompetitionopportunitieso ManagedServiceshassustainableprofitability
• Objectives:o IncreaseManagedServicesRevenue
§ NewClients§ AdditionalScopewithinexistingBase
o IncreaseManagedServicesMarginso DifferentiatedModel
§ Tools§ Methodology§ Process
CaseStudy
ClientwantstomakechangestoanapplicationthatincludesanycombinationofDigital,CloudMigrationand/orLegacyModernization.Currentapplicationisexpensivetomaintainanddifficulttomeetbusinessrequirementsbutpursuingatypicalcloudmigrationisnotpracticalduetothelock-inoftheagedtechnicalinfrastructureoftheapplication.Currentvendoristellingclientthattheapplicationistoocomplexandclientneedstheir[currentvendor]peopletorewritetheapplicationinnewtechnology,butclienthasconcernsabouttheriskofdisruptiontobusinesscriticaloperationsiftherewritefailstodeliver100%ofcurrentfunctionality,andseeksalternativeapproaches.6Vendorsrespondwithproposalstomoveapplicationtocloudandrewritetheapplication.Proposalsincludesolutionsbasedon2commonprojectpatternseachofwhichhaveuniquechallenges:
• Solution1:o “LiftandShift”Approach
§ EmulatecurrentApplicationtechnicalenvironmentandmovetocloud
o Challenge§ Cloudwillreduceinfrastructurecostbuttherewillbeno
improvementstothemaintainabilityoftheapplication• Solution2:
o RewriteApproach§ Provideateamwitheachpersonbillablethroughouttheentiretyof
theprojectforamanualrewriteandmigrationfromoldtonewo Challenge
§ TechnicalRisk:Thisistypicalofmostproviderswhodonothaveareliableandrepeatablemethodology;
§ Businessrisk:toomanyinstancesoflatedelivery,budgetoverrunsandfunctionalityshortfalls,withdisproportionateimpactsonbusinessoperations
§ Budget:T&M/bodycountapproachisexpensive
UnsolicitedProposal
Clienthasanexistingapplicationand/orsuiteofapplicationsthatarenotmanagedefficiently.Mainframeapplicationsarenotdigitalcapable.Applicationsaresupportedmanuallywithalegacyapproachbyanothervendorusingveryminimaltoolsandnoautomation.
DifferentiatedModel
• Understandingtheapplicationo UseIPandtoolstoextractbusinessrules,functionaldependenciesand
databaseschema• UseToolswithrepeatableprocess
o Alltechnicalbenefitsofarewrite,includingintegrateddigitalcapabilitiesandsubstantiallyreducedcostofdownstreammaintenance
o ControlCosto Firmandcredibledeliveryscheduleo EliminateRisk[wecanreallydothis]
• Deploytocloudo Applicationwillbeproperlyre-architectedforcloudenvironment,leveraging
automationtoworkefficientlyoncloudwithquality,maintainablecode• Cost
o WithtoolslikeResQSoft,ClientcanModernizemoreapplications;faster• Maintenance
o ThemoreoftheseapplicationsProvidercanModernizeandmovetothecloudthebetterpositionedtheywillbetodisplaceincumbentproviderandcapturedownstreammanagedservicesontheseapplications
o Financials:Usingthesametoolstoexecutethemigration,Syntelwillbemorecompetitive
§ Pricecanbelower§ Marginwillbehigher
• Businesso Winratewillincreasesubstantiallyo Unsolicitedproposalsaroundknownunderperformingapplicationso Ratio:1/10
§ ForeveryMillioninModernizationthereisapotential10milliondollarsincapturingmanagedservicesbusinessoverthecourseof3years.
o Modernizationcouldreduceclients’runratecostformanagedservicesover3to5yearsandwhileeffectivelyloweringMRCtoclient,includeascheduledmodernizationandcloudmigrationasapartofthemanagedservicescontract.
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