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Companies should not delay modernising applications: HP Malaysia

AvantiKumar | July 30, 2010
Hidden costs in legacy systems unsustainable'
KUALA LUMPUR, 29 JULY 2010 -- Malaysian companies should review the hidden costs of legacy systems and proceed to modernise these, says technology solutions giant HP Malaysia.

HP Malaysia country manager, software and solutions, HP enterprise business, Chong Wai Tuck, said the key challenges faced by Malaysian companies were to cut costs, further optimise business processes, as well as continue with the quest to align IT infrastructure to commercial objectives.

Speaking during the recent Softec2010 [Malaysian Software Testing Conference 2010] in Kuala Lumpur, Chong, said: "As business technology optimisation [BTO] provides essential automation coupled with business insights, companies in Malaysia and in Asia are actively reviewing current architectures, especially with the continuing upturn in the economy."

"Applications are core to the business," he said, citing global examples such as Amazon and Apple's iTunes. "Asia Pacific is going through a radical change. For instance, analyst firm Gartner forecasts the enterprise software market in the region to reach US$22.1 billion by 2010."

"Organisations now exist in an environment of constant change, driven by increased competition, new regulations, a return to growth, as well as evolving technological developments," said Chong.

"HP also announced enhancements to its Agile Accelerator solution, which helps customers increase the quality of their applications, enhance productivity, and respond to changing business scenarios quickly and cost-effectively," he said.

 The importance of application modernisation

Chong said the Asia Pacific is a design, manufacturing, and delivery centre for the global market. "This requires a continual review of business agility, which makes application modernisation a paramount requirement."

He said analyst firm Forrester showed that 59 per cent of respondents in a recent study rated application modernisation initiatives as 'important' or 'very important'.

"In addition, application modernisation is about moving applications from a siloed environment to more open, flexible processes, which are integrated and modular: an agile architecture with distributed personnel is the new norm," said Chong.

"The market can no longer tolerate development cycles of 12 to 18 months," he said. "There are now quicker cycles to market."

"In Malaysia, application modernisation projects are being undertaken by the FSI [financial services institutions], freight-forwarding/logistics, and telecommunications sectors," said Chong. "The SME [small and medium-sized enterprise] sector is showing signs of using IT to move into wider markets."