Spotlight

Report:

The Forrester Wave™: Application Modernization And Migration Services, Q1 2024

How does Forrester define the Application Modernization And Migration Services market in 2024?

Cloud usage continues to rise post-pandemic with new interest in its role in AI. As direct lift-and-shift migration recedes, clients require modernization assistance as their primary need. Modernization services are on the precipice of a revolution brought by generative AI (genAI). Virtually every provider recognizes that genAI is the principal disruptor in the market. The impact of genAI on modernization remains in early phases, primarily in proof-of-concept rather than case history phase. Paired with increased automation, genAI, along with advanced team-based approaches and platform-based delivery, will transform the market for modernization services.

Key Facts for The Forrester Wave™: Application Modernization And Migration Services, Q1 2024 in 2024

How did the Application Modernization And Migration Services market evolve in 2024?

What product features are required to be included in this year's evaluation?

What are the common features of top products in the Application Modernization And Migration Services space?

No common features specified.

Scope Exclusions

Inclusion Criteria

Vendors must, among other requirements:

Offering Strengths — Relative Weighting

Strategy Strength — Relative Weighting

FAQs

Q: What does this research cover?

A: This research covers a 25-criterion evaluation of the top application modernization and migration services providers. It evaluates 15 providers across current offering capabilities, strategy, and market presence. The research examines providers' scale, vision for application modernization, investment in emerging technologies including genAI, conversance with modern software development processes, and their ability to deliver modernization and migration services effectively.

Q: Who should use this research?

A: Cloud and vendor management professionals should use this research to select the right application modernization and migration services provider for their needs. The report helps organizations identify providers with scale and strong vision, ability to invest in and effectively use emerging technologies like genAI, and conversance with modern software development processes including cloud-native development, product teams, platform teams, and site reliability engineering concepts.

Q: What are the mandatory features of vendors included in this market?

A: To be included in this Forrester Wave evaluation, vendors must have: (1) comprehensive services capabilities across all primary modernization and migration categories including assessment, execution, migration, development for replacement, and retirement/rationalization services; (2) significant scale with combined modernization and migration revenues exceeding $1 billion; (3) global reach with at least 15% of revenues from two major geographic regions; and (4) substantial mindshare among Forrester's enterprise clients as evidenced by frequent appearance in client inquiries, shortlists, consulting projects, and case studies.

Q: What are some reasons for not being included in this report?

A:

  • Combined modernization and migration revenues below the $1 billion threshold
  • Lack of comprehensive service offerings across all primary modernization and migration categories
  • Insufficient geographic breadth (less than 15% of revenues from two major regions)
  • Limited mindshare among Forrester enterprise clients
  • Lack of scale compared to major market players
  • Limited reach despite influence in specific scenarios (as noted with firms like Globant and Slalom)
  • Declining to participate in or contributing only partially to the evaluation process

Q: What should buyers consider when evaluating products in this market?

A:

  • Look for providers with scale and a strong vision for application modernization that aligns with your own journey
  • Evaluate the provider's ability to invest in and make effective use of emerging technologies, including genAI, through viable use cases
  • Assess conversance with modern software development processes including cloud-native development, product teams, platform teams, and site reliability engineering (SRE)
  • Consider whether the provider can demonstrate platform-based approaches featuring higher levels of automation
  • Look past incumbency in AMS relationships to evaluate possible alternatives with distinguishing visions
  • Evaluate the provider's ability to balance technical capability with business acumen and strategic partnership
  • Consider pricing flexibility, transparency, and the provider's willingness to engage in outcome-based agreements

Q: How has the Application Modernization And Migration Services market evolved in 2024?

A:

  • Generative AI (genAI) is the principal disruptor in the market and will transform modernization services
  • Direct lift-and-shift migration continues to recede as modernization becomes the primary client need
  • Increased automation paired with genAI will enhance productivity
  • Advanced team-based approaches including product teams and platform teams are dominating build activities
  • Platform-based delivery featuring higher levels of automation is emerging beyond traditional 'software factory' models
  • Modern software development processes including cloud-native development and site reliability engineering (SRE) are becoming standard
  • Providers are bringing modern teaming methods to cloud operations and AMS strategies
  • Cloud usage continues to rise post-pandemic with new interest in its role in AI

Q: What differentiates Strength of Offering vs. Strength of Strategy?

A: Current Offering (vertical axis) evaluates the strength of a vendor's present capabilities including scale in services capability, support for major hyperscaler platforms, support for legacy systems and COTS, personnel and organization, service capabilities, and customer success. Strategy (horizontal axis) evaluates the strength of vendors' future direction and execution plans including vision, pricing flexibility and transparency, innovation, community engagement, supporting services, global delivery, talent strategy, and partner ecosystem. Current Offering focuses on what vendors can deliver today, while Strategy assesses their roadmap and ability to evolve.

Reference

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