So why aren’t more IT departments supporting business innovation effectively? Well to some extent we have already answered this question. Many CIOs and IT departments are busy just keeping IT running and measuring performance against vital key performance indicators. Often IT is seen as a cost centre that needs to be measured, optimized and controlled, rather than as the powerhouse of business innovation. And CIOs may have little time or budget to innovate, due to the fact that such a large chunk of existing IT budgets, resources and staff are committed simply to keeping legacy infrastructure running.

The scale of this problem was revealed in a recent white paper[1] by Erudine’s Dr Toby Sucharov and Philip Rice who noted that: “The cost of legacy systems [from industry polls] suggest that as much as sixty to ninety percent of IT budget is used for legacy system operation and maintenance.”

And not only is it expensive to maintain, but the “double whammy” of much legacy infrastructure is that it is no longer aligned to business need and impedes that much-needed innovation.

If you want to re-align your IT to business need you have two main choices: tactically managing the issue (for example, by extending systems or by partial replacement of infrastructure) or strategically redesigning your infrastructure. While the second approach will yield the most benefits in the long run, in practice it’s the first approach that most companies have taken. This is because migrating mission-critical applications and their associated data is risky and difficult, and such projects have a poor record of being delivered on time or to budget.

Many enterprises have therefore naturally shied away from attempting such projects, although the compounded effect of using a tactical approach to solve legacy IT problems over a number of years is the unbelievable complexity that is now responsible for sucking IT budgets dry.

This brings us back to the seemingly intractable ‘chicken or egg’ conundrum of innovation versus operation. A solution to this problem is offered by the new generation of application migration technology that is coming to market. So-called “third generation” migration solutions are very different from preceding generations of migration technology. Notably, they are highly adept at dealing with the thorny problem of business logic held in legacy systems and are flexible enough to enable “business-driven” migrations[2].

CIOs that have employed this technology have achieved business-driven application migration and consolidation projects on time and to budget. They are benefitting both from a lower legacy infrastructure cost and the ability to offer new products and services to their customers – supporting innovation and opening up new revenue streams. Take early adopter BT, for example, who wanted to migrate the legacy billing system that supported its Featurenet[3] customers to Convergys's Geneva system, but who also desired a "completely seamless transition" to the new system. It achieved a successful migration in just six months (a full 13 months ahead of schedule) using the Evolve tool from Celona Technologies. BT Retail has since credited the successful project with creating more than €148 million in new revenues, thanks to its ability to launch innovative new services to Featurenet customers.

Third-generation migration technology could be the CIOs best friend - the key to unlocking the budget and resources trapped in legacy systems, by enabling effective, low-risk application migration and consolidation. And, by significantly reducing both the risk and cost of consolidating and renewing legacy infrastructure, it allows more resources and effort to be targeted at innovation.