When does an application truly require modernization, in your view? What problems are so urgent that there really is no other option?

In my experience, particularly with the Blue Cross Blue Shield family, modernization opportunities often arise during consolidations, such as when different entities are merged and each brings its own systems and websites. We used such opportunities to modernize our front-end and API stacks, creating a common data layer and a unified engagement layer across different platforms, which significantly improved our service delivery and operational efficiency. This approach not only addressed immediate technical and business needs but also positioned us well for future scalability and integration, proving to be financially beneficial in the long run.

Urgent needs for application modernization usually revolve around security, performance, and the availability of skilled personnel to maintain outdated technologies. If a codebase or product causes significant frustration due to its outdated nature, modernization might be necessary to attract or retain talent. This is particularly true in cases where older programming languages like COBOL or FORTRAN are involved, and the pool of professionals familiar with these languages is dwindling.

Application modernization is typically considered when there are performance issues, critical vulnerabilities, or when software reaches its end of life and must be updated. It's also necessary when the existing backend infrastructure no longer supports the current needs, prompting an upgrade not just of the software applications but of the infrastructure itself. This often leads to considering cloud solutions, where factors like security features and maintenance costs are evaluated. Regulatory and compliance aspects, especially in sectors like home lending, also dictate the need for modernization to manage risk effectively.