Why Organizations Add App Modernization to their CCOE

To adapt to the evolving market, businesses are increasingly modernizing their legacy applications by transitioning them to the cloud, a process that requires a structured framework like the Cloud Center of Excellence (CCOE). The CCOE, defined by Amazon Web Services as a cross-functional team responsible for cloud strategy, governance, and best practices, ensures the effective transformation of business operations through the cloud. Application modernization, a critical component of this strategy, involves restructuring legacy software into cloud-native architectures to capitalize on cloud ecosystems and managed services. Despite a historical failure rate of 74% for such projects, incorporating application modernization into the CCOE can mitigate common pitfalls and enhance success rates. This transformation necessitates not only technical expertise but also organizational restructuring to align with cloud-native patterns, in accordance with Conway’s Law. Successful examples, like those from Dow Jones and others, underline the importance of a dedicated CCOE/MCOE (modernization center of excellence) in guiding these efforts. As a best practice, companies are urged to either establish or enhance their CCOE/MCOE to provide authoritative leadership, supported by external expertise if necessary, to ensure that cloud and modernization initiatives are effectively governed and aligned with organizational goals.