Updated Jan 24, 2026

40 Legacy Software Migration Trends for Enterprises in 2026 | Adalo

Table of Contents

With 70% of Fortune 500 software over 20 years old and technical debt consuming up to 40% of technology estate value, enterprises face mounting pressure to modernize—yet only 15% of migrations complete on time and budget.

Among the 40 trends reshaping legacy modernization, no-code platforms stand out as a strategic response to the projected 4-million developer shortage by 2026. Adalo is a no-code app builder for database-driven web apps and native iOS and Android apps—one version across all three platforms, published to the Apple App Store and Google Play—enabling enterprises to rapidly replace aging systems without traditional development bottlenecks.

These trends reveal how organizations are achieving faster time-to-market with MVPs, reaching broader audiences through app store distribution, and leveraging push notifications to drive engagement—all critical factors when modernizing legacy infrastructure under tight timelines.

Comprehensive data compiled from extensive research across enterprise modernization, cloud migration, and no-code platform adoption trends

Key Takeaways

Low-code platforms deliver strong ROI - OutSystems users achieve 506% ROI per Forrester TEI, while platforms enable 90% faster development
Federal IT spends 80% on maintenance - U.S. government allocates 80% of its $100+ billion IT budget to operations and maintenance
Developer shortage reaches crisis levels - With 4 million developer shortage by 2026, no-code platforms enable non-technical users to build applications
Citizen development transforms enterprises - 83% of tech leaders have programs empowering business users to create applications
Migration success remains challenging - Only 15% complete migrations on time and budget, requiring modern approaches
Technical debt impacts 20-40% of technology value - McKinsey estimates technical debt equals 20-40% of technology estate value
Industry leaders embrace low-code - 87% of enterprise developers use low-code platforms as the market grows rapidly

Current State of Legacy Systems & Technical Debt

70% of Fortune 500 software was developed 20+ years ago. McKinsey's 2026 analysis reveals the staggering age of enterprise systems, with most critical infrastructure predating cloud computing, mobile devices, and modern security standards. This aging technology creates massive vulnerabilities and prevents organizations from leveraging modern capabilities like AI and real-time analytics. Companies with modern systems generate significantly more revenue growth than those constrained by legacy infrastructure.
Technical debt costs reach approximately $300,000 annually per million lines of code. Organizations face significant accumulated technical debt, with recent 2026 research from Sonar showing annualized costs of approximately $300,000 per million lines of code. McKinsey notes that companies spend 10-20% of new product technology budgets managing this debt. Modern development approaches can help reduce but not eliminate technical debt accumulation.
80% of federal IT budget goes to operations and maintenance. The U.S. federal government allocates approximately 80% of its $100+ billion IT budget to operations and maintenance, leaving only 20% for innovation and modernization. Some agencies operate systems over 50 years old running on obsolete hardware no longer manufactured. This maintenance burden prevents government from delivering modern digital services citizens expect.
Technical debt represents 20-40% of entire technology estate value. McKinsey research shows technical debt now accounts for 20-40% of organizations' total technology value, effectively eroding billions in enterprise value. Companies divert 10-20% of new product technology budgets to managing this debt. This hidden liability impacts valuations, credit ratings, and acquisition potential while constraining strategic flexibility.
U.S. cost of poor software quality reaches $1.52 trillion. The Consortium for Information & Software Quality estimates the cost of poor software quality in the U.S. at $1.52 trillion, which includes technical debt among other quality issues. This spending generates zero business value while opportunity costs reach hundreds of billions in foregone innovation. Modern development practices can help manage software quality challenges.
78% of developers report legacy maintenance hurts morale. Developer surveys reveal that 78% find excessive legacy maintenance negatively impacts job satisfaction, contributing to 30% annual turnover rates in IT departments. Top talent increasingly refuses positions requiring legacy system work, creating recruiting challenges. Organizations using modern platforms report higher developer satisfaction.

Migration Trends & Success Rates

Only 15% of enterprises complete migrations on time and budget. Migration success remains elusive with just 15% of organizations completing projects within planned timelines and budgets, while 55% experience significant delays or cost overruns. Failed migrations cost enterprises millions in direct expenses plus opportunity costs. Modern platforms can improve success rates by reducing technical complexity.
Cloud Migration Services Market reaches $1.03 trillion by 2030. The global migration services market grows from $0.3 trillion in 2026 to $1.03 trillion by 2030, at 28.24% CAGR as enterprises accelerate modernization efforts. Modern migration approaches capture increasing market share by reducing costs while accelerating timelines.
Cloud adoption continues expanding across enterprises. McKinsey research shows enterprises increasingly moving workloads to cloud, with growing cloud investments and adoption rates. Early adopters report 20-30% cost reductions and 40% faster time-to-market. Organizations using modern platforms for cloud-native development can avoid complex migrations.
Organizations face 14% average annual cost overrun on migrations. Enterprises consistently underestimate migration costs, experiencing 14% budget overruns annually that translate to millions in unplanned expenses. Hidden costs include rearchitecting, data migration, and extended parallel operations. Platform approaches can provide more predictable costs through subscription models.
ROI timeline varies significantly by migration approach. While traditional migrations show varying payback periods, successful cloud migrations typically achieve positive ROI within 18-24 months. Top performers realize strong returns within three years through operational savings and new capabilities. Modern platforms can accelerate payback by reducing development costs.
73% of enterprises adopt hybrid cloud strategies. Hybrid cloud dominates enterprise architectures at 73% adoption according to Flexera's State of the Cloud Report, balancing security, compliance, and flexibility requirements. Organizations maintain an average of 2.1 cloud providers plus on-premises infrastructure. Modern platforms can operate across hybrid environments, providing unified development.

Low-Code Platform Performance & ROI

OutSystems delivers 506% ROI per Forrester TEI study. Forrester's Total Economic Impact study specifically for OutSystems reveals users achieve 506% ROI over three years with six-month payback periods. This return stems from development cost reduction and faster delivery for that specific platform. Different low-code platforms will have varying ROI profiles.
87% of enterprise developers use low-code platforms. Forrester research shows 87% of professional developers now utilize low-code tools for at least portion of development work, validating mainstream adoption. Even experienced programmers recognize productivity benefits of visual development. This trend indicates growing acceptance of low-code approaches.
Low-code development reduces costs significantly. Platform comparisons reveal low-code solutions can deliver substantial cost reductions versus traditional development for comparable applications. Specific savings vary by platform and use case. This cost reduction helps democratize software creation for organizations.
75% of large enterprises will deploy multiple low-code tools by 2026. Gartner predicts 75% of large organizations will use at least four low-code platforms for various development needs by 2026. This multi-platform approach addresses diverse use cases from mobile apps to workflow automation. Organizations evaluate platforms based on specific requirements.
Microsoft Power Apps TEI shows strong productivity gains. Microsoft Power Apps users in Forrester's TEI study report significant time savings through automated workflows and rapid development. The study showed 206% ROI for Power Apps specifically. Different platforms will deliver varying productivity improvements.
Platform ROI varies by vendor and use case. OutSystems' Forrester TEI documented 506% return on investment with six-month payback, representing one platform's performance. Returns vary based on platform selection, implementation approach, and organizational maturity. Organizations should evaluate platforms based on their specific needs.

Citizen Development Revolution

Citizen developers will outnumber professionals 4:1 by 2026. Gartner's prediction of 4:1 ratio between citizen and professional developers represents fundamental shift in software creation. This democratization enables more employees to become problem solvers. Organizations are investing in platforms that support citizen development.
83% of tech leaders have implemented citizen development programs. Research reveals 83% of technology leaders have formal citizen development initiatives, with 92% planning expansion in 2026. These programs aim to reduce IT backlogs while empowering business users. Success requires appropriate governance and platform selection.
Citizen developers increase application creation. Gartner research indicates citizen developers are becoming more productive as platforms improve and training expands. Productivity varies based on platform complexity and user training. Organizations report varying levels of citizen developer output.
92% of organizations say citizen development vital for transformation. Nearly all enterprises recognize citizen development as critical for digital transformation success, enabling scale beyond IT capacity alone. Citizen developers provide domain expertise traditional developers may lack. Success requires appropriate platform selection and governance.
Organizations with citizen development report innovation benefits. McKinsey research shows companies empowering citizen developers can achieve innovation improvements compared to traditional IT-centric organizations. Innovation acceleration comes from reducing barriers between ideas and implementation. Results vary based on organizational culture and platform selection.

Developer Shortage & Talent Crisis

Global developer shortage reaches 4 million by 2026. The worldwide developer deficit is projected to reach 4 million unfilled positions by 2026, creating challenges for digital transformation efforts. This shortage drives salaries up while creating project delays. Low-code platforms can help reduce dependency on scarce developer resources.
74% of companies experience talent shortages globally. ManpowerGroup's 2026 survey shows 74% of organizations struggle to find qualified talent, with technology roles among the hardest to fill. Critical skills like cloud architecture and AI development show high shortage rates. Platforms enabling non-technical users help address skills gaps.
Average time to hire developers extends 35-41 days. Organizations require 35-41 days average to hire software engineers, with senior positions taking longer. Total hiring costs reach $35,000 per developer including recruitment and onboarding. Low-code platforms can reduce hiring pressures by enabling existing staff.
Software developer salaries reach $133,080 median. U.S. Bureau of Labor Statistics reports median developer salary of $133,080, representing significant premium over national median wage. Total compensation including benefits exceeds this base salary. Platform subscriptions cost fraction of developer salaries.

Industry-Specific Migration Patterns

Banking sector prioritizes core system modernization. Financial services lead modernization with significant budget allocation to modernization initiatives, focusing on improved agility and customer experience. Legacy banking systems average 30+ years old with some dating to 1960s. Modern platforms enable development of new applications alongside legacy systems.
Healthcare IT market grows at 15.8% CAGR through 2030. The healthcare sector shows strong growth at 15.8% compound annual rate driven by interoperability requirements and patient expectations. Digital health venture funding in the U.S. reached approximately $10.1 billion in 2026 according to Rock Health, with global investments around $25 billion per industry trackers. Platform selection must consider healthcare-specific requirements.
86% of manufacturers prioritize digital transformation. Manufacturing sector faces competitive pressure with 86% of executives viewing digital solutions as critical to compete with digital-native entrants. Industry 4.0 adoption remains below 30% despite clear ROI potential. Modern platforms can accelerate manufacturing digitization.
Retail transformation drives omnichannel experiences. Retail modernization focuses on omnichannel strategies that improve customer retention, with successful implementations showing positive returns. E-commerce platform migrations require careful planning. Modern development approaches enable rapid deployment of retail applications.
U.S. federal government spends 80% of IT budget on operations and maintenance. The U.S. federal government allocates approximately 80% of its technology budget to operations and maintenance, with some systems operating since 1950s. Modernization could generate significant savings over time. Federal agencies explore modern platforms within budget constraints.

Technical Debt & Hidden Costs

U.S. cost of poor software quality reaches $1.52 trillion. The Consortium for Information & Software Quality estimates the cost of poor software quality in the U.S. at $1.52 trillion, which includes technical debt, failed projects, and operational software failures. Fortune 500 companies face significant portions of these costs. Modern development practices help manage software quality challenges.
Organizations spend 10-20% of budgets on technical debt. Companies dedicate 10-20% of new product technology budgets to technical debt management, with severely indebted organizations spending even more. This spending constrains innovation investment. Modern approaches can help reduce but not eliminate debt accumulation.
33% of developer time consumed by debt maintenance. Developers spend one-third of productive time addressing technical debt, impacting productivity significantly. This maintenance work provides limited career advancement opportunities. Modern platforms can reduce but not eliminate maintenance burden.
Data breach costs average $4.4 million per incident. IBM reports average data breach cost of $4.4 million in 2026, with recovery times averaging months. Legacy systems may face additional security challenges. Modern platforms should include enterprise security features.

Future Projections & Market Growth

Low-code market projected to reach approximately $30 billion by 2028. The global low-code market continues expanding rapidly, with Forrester's baseline forecast projecting approximately $30 billion by 2028, with potential upside scenarios approaching $50 billion. Growth reflects increasing enterprise adoption and platform maturity.
70% of new applications will use low-code by 2026. Gartner predicts 70% of new application development will utilize low-code platforms by 2026, up from 25% in 2020. This shift represents fundamental transformation in software creation. Platform selection becomes increasingly important.
95% of new workloads deployed cloud-native by 2026. Gartner forecasts 95% of new digital workloads will deploy on cloud-native platforms, reducing traditional on-premises deployments. This shift impacts application architecture decisions. Cloud-native platforms ensure applications remain current.
170 million new jobs created through digital transformation. World Economic Forum projects 170 million new jobs by 2030, with 92 million displaced for 78 million net new roles. Digital skills become increasingly important for workforce. Low-code skills rank among valuable capabilities.

Sources Used

FAQ

Question	Answer
Can I easily modernize legacy systems and reduce technical debt with a no-code solution?	Yes, with Adalo's No Code App Builder, you can easily modernize legacy systems and reduce technical debt. Instead of spending 80% of your IT budget on maintaining outdated systems, you can rapidly build modern, cloud-native applications that integrate with your existing infrastructure while providing the flexibility to innovate.
Why choose Adalo over other App Builder solutions?	Adalo is a no-code app builder for database-driven web apps and native iOS and Android apps—one version across all three platforms, published to the Apple App Store and Google Play. This unified approach means you avoid the complexity of managing multiple codebases while achieving the 90% faster development times that low-code platforms deliver. Publishing directly to app stores is crucial for marketing and distribution, which is often the hardest part of launching a new app or business—Adalo handles this complexity for you.
What's the fastest way to build and publish an enterprise modernization app to the Apple App Store and Google Play Store?	Adalo is the fastest way to build and publish an enterprise modernization app to the Apple App Store and Google Play. With No Code App Builder's drag-and-drop interface and AI-assisted building, you can go from idea to published app in days rather than months. Adalo handles the complex App Store submission process, so you can focus on your app's features and user experience instead of wrestling with certificates, provisioning profiles, and store guidelines.
How can citizen developers help address the 4 million developer shortage?	Citizen developers—business users who build applications without traditional coding—are projected to outnumber professional developers 4:1 by 2026. No-code platforms like Adalo empower these non-technical users to create functional applications, reducing dependency on scarce developer resources while enabling faster innovation and reducing IT backlogs.
What kind of ROI can organizations expect from low-code and no-code platforms?	Industry research shows low-code platforms can deliver significant ROI, with some platforms reporting 506% returns over three years and six-month payback periods. These returns come from dramatically reduced development costs, faster time-to-market, and the ability to build applications without expensive developer salaries that average $133,080 annually.
Can no-code platforms handle enterprise-grade applications?	Yes, modern no-code platforms are increasingly capable of handling enterprise requirements. With 87% of enterprise developers now using low-code tools and Gartner predicting 70% of new applications will use low-code by 2026, these platforms have matured to support complex database-driven applications, security requirements, and multi-platform deployment.
How does no-code development help with cloud migration challenges?	With only 15% of enterprises completing migrations on time and budget, no-code platforms offer a more predictable path to cloud-native applications. Instead of complex lift-and-shift migrations, organizations can build new cloud-native applications from scratch, avoiding the 14% average annual cost overruns associated with traditional migration approaches.