Although the Cloud trend has been underway for many years now, the migration opportunity is still massive.
As CNBC reports in an interview with AWS CEO Adam Selipsky, only 10% of IT has moved to the Cloud thus far.
Vantage reports the Cloud Migration market will grow from $92.4 Billion in 2021 to $340.7 Billion by 2028.
An especially potent sub-sector within the Cloud Migration market is the need for Legacy Modernization, referring to the software rejuvenation of older platforms like COBOL mainframes to new technologies such as Java. For many organizations they are harnessing the drive to Cloud as an opportunity to simultaneously also modernize the software too.
Notable examples include the USA and UK Governments.
As The Register writes the UK government has committed to ending its reliance on legacy applications by 2025, describing how the costly issue of technical debt had been allowed to build up over multiple financial cycles and was now a barrier to the delivery of policy and services. Rishi Sunak blamed legacy IT for his decision not to increase social security payments.
In the US, according to a report by the GAO, the government spent over $100bn on IT in 2021, most of it operating and maintaining legacy systems.
The GAO analyzed 65 federal legacy systems, and identified systems that were eight to 51 years old, with three agencies – the Department of Education, the Department of Health and Human Services, and the Department of Transportation – having no documented plans to modernize.
US senators Maggie Hassan and John Cornyn are attempting to get the US to bring some transparency to its own legacy goverment IT problem with the Legacy IT Reduction Act of 2022.
A keynote partner program relevant to this market includes the AWS Mainframe Modernization competency. Partners include Astadia, TSRI and Micro Focus.