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Importance of Data Modernization for Digital Transformation

As the industry emerges from the pandemic, we have witnessed the emergence of digital transformation in many places. The name of the IT industry is worth mentioning here, as it was still stuck with the legacy systems having outdated technology and producing a massive amount of data but not utilizing it correctly. Managing data day in and day out may give little value to an organization. But, data modernization can do wonders for the company. This blog will look at why data modernization is essential for digital transformation.

Achieving data-driven business opportunities  

We know today that data is the new oil – it’s one of the most critical assets that any organization can have. Therefore, you should be prepared to manage data and derive insights from it so it can deliver practical solutions and better end-user experiences. Today, the IT world is seeing an organic transition that is not just keeping the businesses running but is also helping businesses move forward with the next generation of IT solutions. Today, you should be able to upgrade the solutions without taking the whole system down. Thus, to survive in this competitive business world, you must modernize your assets & achieve more excellent data-driven business opportunities. 

Modernizing data silos  

Till now, organizations were using legacy data warehouses & data was scattered. Data modernization envisages modernizing & eliminating those data silos that were present in different databases & the ETL systems that were feeding those systems. These all need to go away & be consolidated into cloud-native solutions.  

Today, the cloud plays a crucial role for businesses that want to get rid of outdated technologies and large hardware or software solutions. They want to do away with unreliable legacy infrastructures that are occupying unnecessary & inefficient storage and finally adapt to the cloud.  

But why? – want the answer? Then look at the clouds; they are vast and limitless. Can you imagine having such a vast space to store data? Is not it fascinating? Storage is a valuable tool for any company as it helps host and protect data. Therefore, you must be able to manage and organize data, but then it should not take all your time as you look forward to managing the actual storage. 

Digital transformation with cloud computing  

According to a report in Gartner, around 45% of the tech companies who have invested in large infrastructure projects will move from traditional systems to cloud-based systems by 2025. Cloud computing has entirely changed the notion of digital transformation with the sustainability. The global end-user spending on cloud services is expected to grow 20% in 2022 to a total of $500 billion. By 2023, end-user spending will reach nearly $600 billion. 

Cloud migration drives the conception of remodelling your business strategy to experience the benefits of cloud computing. It helps move your assets to the digital world and also helps in reducing the total cost of assets. It also provides enhanced user experience, flexibility in integrating other software, data privacy, security, and better business decision-making ability using analytical tools.  

Critical challenges in legacy modernization 

Though there are perks in modernizing data, legacy or data modernization also has challenges. Many enterprises are not averse to using legacy systems as they think there is a risk of losing data or the high cost involved. Some of the challenges that businesses face in legacy modernization are: 

  • A key challenge is ensuring that the old data formats in the existing system are well-matched with the data format of the opted platform so that there is no disruption in the data while moving it from the legacy system to a cloud-based system.  
  • Another challenge is assuring data security because there is concern that the risk of cyber-attacks is higher on cloud data platforms than on-premise data.  
  • If there is a lack of expertise in data science, then simply having a tool for data analytics won’t give you the required business insights. You must know to draw out meaningful information to make sound decisions.

Ready to experience the full power of cloud technology?

Our cloud experts will speed up cloud deployment, and make your business more efficient.  

Data modernization is all about aggregating different data sources and bringing them together to upgrade business outcomes by anticipating market changes. We move a legacy system to a modern infrastructure to reduce IT costs, improve agility, and deliver good data experiences with valuable insights. Thus, by modernizing data the right way, businesses can advance the delivery of new products and services and adapt smartly to evolving business requirements. ISmile Technologies helps optimize your data to be trustworthy & business ready with DataOps managed services. Schedule a free assessment today.

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