Insights

Application modernisation is often framed as a technology or cost challenge. However, for most organisations, it’s ultimately a risk management decision. 

Do you accept the rising risk of outdated systems in exchange for short-term savings? Or do you invest in change, knowing that partial progress may still leave residual risks in place for years? 

This is the dilemma facing many Australian enterprises today. According to the ADAPT CIO Edge Survey 2024, legacy application modernisation and integration are among the top three priorities for CIOs across the country. Broader goals like technology simplification, cost optimisation, and enhancing customer experience also rank in the top ten—reflecting the strategic value of getting this right. 

The Urgency of Addressing End-of-Life Systems 

Across government, utilities, defence, education, and healthcare, the pressure to modernise applications is intensifying—not just because the platforms they’re built on are reaching end-of-life (EOL), but because the risk of standing still now outweighs the cost of change. 

EOL deadlines are a clear catalyst for modernisation. Unsupported platforms create significant operational and security risks. They cannot meet today’s cybersecurity expectations, aren’t aligned with modern architectural patterns, and—critically—depend on a shrinking talent pool of developers and administrators who can still maintain them. 

Some key EOL deadlines include: 

• Windows 10 support ends in October 2025. 

• .NET Framework 4.6.x and 4.7.x are already out of support, with modern .NET Core (now just “.NET”) versions like 6.0 ending in late 2024. 

• SQL Server 2014 extended support ended in July 2024. 

• AngularJS and other legacy JavaScript frameworks have already reached EOL. 

• Mobile OSs like Android 8 or iOS 12 no longer receive updates but are still used by many business applications. 

While these deadlines create urgency, EOL pressures are only one part of the modernisation equation. 

Balancing Risk and Cost in Application Modernisation 

Sticking with unsupported systems creates risk. But modernising them is not without cost—or complexity. 

Most legacy applications were built more than a decade ago. They were never designed to integrate with modern systems securely or meet today’s data governance and information security standards. Modernising them introduces several challenges: 

1. Security and Compliance Costs 

Legacy systems often include exceptions that no longer meet modern standards (e.g., insecure data storage, hardcoded credentials, admin-heavy access controls). Modernising these systems requires significant architectural changes, revalidation efforts, and penetration testing to bring them up to standard. 

2. Business Alignment Drift 

Applications may no longer reflect current processes, user expectations, or organisational priorities. Simply rebuilding “what we had” is a missed opportunity—yet redesigning for today’s needs adds time and cost. 

3. Integration and Data Access 

Legacy systems often rely on manual re-entry or extract-transform-load (ETL) workarounds. Modern platforms demand real-time integration, direct data access, and analytics-ready outputs—adding further complexity to a modernisation effort. 

Each of these factors is valid on its own. Together, they can turn a necessary update into a costly and long-running transformation. Organisations are understandably cautious: if partial fixes leave residual risk in place for another 5–10 years, and full replacements are unaffordable, what’s the right path forward? 

The Risks of Delaying Modernisation 

There’s a paradox at play: reluctance to accept partial improvements or “good enough” solutions often results in doing nothing—leaving greater risks in place. 

When organisations delay action: 

• Unsupported applications persist. 
• Non-compliant systems remain visible to auditors. 
• Manual processes continue to erode productivity. 
• Security vulnerabilities stay unpatched. 

These risks compound over time. Ironically, even when organisations attempt “good enough” solutions as stop-gaps, these often become permanent due to funding or resource constraints. This perpetuates technical debt and leaves organisations vulnerable to operational failures or security breaches. 

As platforms age further, technical debt transforms into operational risk—and without a proactive strategy for managing this across the portfolio, organisations are left reacting to last-minute crisis upgrades. 

Embracing Continuous Application Modernisation 

One alternative to large-scale “big bang” projects is adopting a continuous application modernisation approach—a strategy that treats application updates as an ongoing process rather than a one-off intervention. 

This approach involves: 

1. Creating a Dedicated Team: Establishing a standing application modernisation team with governance, funding, and capability. 

2. Prioritising Risks: Addressing critical risks early while allowing lower-risk applications to be updated over time. 

3. Building Reusable Patterns: Developing reusable frameworks for integration, compliance, and security. 

4. Engaging Business Owners: Continuously collaborating with stakeholders to ensure applications remain aligned with evolving needs. 

5. Replacing Uncertainty with Continuity: Shifting from reactive upgrades to proactive management reduces uncertainty while enabling continuous improvement. 

While this approach introduces new operational costs, it replaces unpredictable crises with manageable streams of work—allowing organisations to modernise incrementally while keeping pace with evolving technology demands. 

Key Takeaways: A Strategic Path Forward 

For Australian enterprises facing mounting pressure to modernise their applications: 

• Recognise that application modernisation is fundamentally about managing risk—not just reducing costs or upgrading technology. 
• Avoid delaying action due to fear of residual risks; instead, prioritise critical updates while planning for continuous improvement. 
• Shift from reactive crisis management to a proactive product-and-platform approach that enables incremental progress over time. 

By embracing continuous application modernisation as an ongoing strategy rather than a one-off project, organisations can reduce their most serious risks upfront while maintaining flexibility to adapt as needs evolve. 

Next Steps 

If your organisation is grappling with legacy system challenges or planning its application modernisation journey, Chamonix IT can help. Contact us today to discuss how we can support your risk management strategy with tailored solutions that align with your business goals.