Modernize your tech stack, why is it so important?


How to stay scalable, competitive, and progressive?

Modern technological developments are rapidly succeeding one another, forcing companies to examine their IT landscape critically. The philosophy “standing still is going backwards” is more relevant than ever, and modernizing software, frameworks, and infrastructure (briefly summarized as modernize your ‘tech stack’) is not a luxury but an absolute necessity to stay competitive and relevant as a company.

Through this article, we share valuable insights, analyses, and best practices about the importance and how to modernize your tech stack. What are the main reasons for IT modernization? What are the risks associated with outdated infrastructure? How does an up-to-date solution help you to be and remain successful?

Small steps for great results 

We are all too familiar with the stories: modernization projects that fail miserably. Let’s go back to 2012 when the leading American securities trader Knight Capital Group implemented an update in the automated trading systems. However, a software error resulted in a loss of over 400 million euros in just a few minutes and nearly bankrupted the company.

But we also have examples closer to home, like million-dollar projects within the government that end up in disaster. These examples often instil fear in entrepreneurs to modernize, causing them to work for years on old, ‘trusted’ systems. According to Dick van Straaten (Director of Cloud & IoT at LINKIT), it is very risky: “Due to rapid technological developments, your company is increasingly lagging behind. The competitive position wavers, critical customer needs are at risk, and organizations become more susceptible to cybercrime. Besides, entrepreneurs often dread the size of the modernization project. At the same time, by taking small steps, you can streamline the process and guide it well. To Modernize your tech stack is not a one-time step, but a continuous process that never stops.”

“Modernizing your tech stack is not a one-time step, but a continuous process that never stops.”

“In the past, you bought Windows 95 and knew that Windows 98 would be out three years later. Now we live in a time when updates and patches almost appear daily. It presents challenges for the IT department, the business, and related processes. Companies are forced to make decisions faster: go or no-go.”

No longer sexy

By postponing modernization, companies increasingly fall behind in new techniques. Support falls away, licenses expire, security becomes weaker, and no more updates can be performed. In addition, the attractiveness of your company decreases when you work on old systems, Dick says. “Old technologies no longer appeal to the new generation, and as a company, you are no longer ‘sexy’ to work for. Often we see that companies like this have a higher-than-average turnover rate, creating a twofold problem. On the one hand, knowledge is leaving. On the other hand, it is tough to attract new talent for outdated technology.”

“Old technologies no longer appeal to the new generation, and as a company, you are no longer ‘sexy’ to work for.”

Modular structure

To keep up with daily changes, it is important that the tech stack is flexible and scalable so it grows with the company. Outdated systems limit the company’s growth and make adding new functionalities or adapting to changing (customer) needs difficult. Dick: “Modern tech stacks are often modular, making them easier to adapt, and new technologies can be integrated more easily. This way, companies can quickly respond to market changes, growing workloads, and new technologies, staying agile and competitive.”

Cloud computing also plays a role in this, continues Dick. “Modern solutions increasingly use managed cloud services. These services relieve and offer the possibility to scale resources, such as computing power and storage, automatically based on demand so that companies can operate more cost-effectively.”

Unwanted viewers

Another aspect highlighting the importance of modernization is cybersecurity. Outdated software and a ‘dusty’ IT landscape are vulnerable and pose a serious security risk for the organization. Dick explains: “The longer you as an organization wait to modernize your IT landscape, the greater the risks become, resulting in unplanned downtime, financial losses, or reputational damage.”

The longer you as an organization wait to modernize your IT landscape, the greater the risks become.”

But as logical as it may sound, the mindset is often different in practice, and Dick regularly comes across companies that do not see the risk. “Often, I hear from customers that they have never been hacked or don’t consider themselves interesting to cyber criminals. But how sure are they about that? With outdated software, there is no real-time control. Until they suddenly look in the logs and find out that someone has been ‘watching’ for years. Real-time monitoring, possible with modern software, is therefore strictly necessary.”

Lifeline of the company

In addition to attractiveness, flexibility, and security, a modern tech stack allows companies to streamline their processes and work more efficiently. Dick: “New technologies and frameworks provide better performance and faster processing speed of systems. In other words, companies can automate operational processes using workflows and scripts by replacing outdated software with modern alternatives. It reduces the chance of human errors and has a positive effect on cost savings, time gains, productivity, and thus the final service to customers.”

He concludes: “Companies can no longer avoid it: a modern tech stack is the company’s lifeline. If you want to be competitive, attractive, progressive, and successful, modern IT infrastructure is indispensable. Because only by innovating do you make a strategic step to stimulate your growth and lay a solid foundation for future success.”



Dick van Straaten

Microsoft Cloud Lead
+31302650265 linkedin

Dick van StraatenDirector Cloud & IoT (LINKIT)

Dick (54) has worked at LINKIT since 2021 and is ultimately responsible for the Cloud & IoT squad. He advises clients and partners on strategy and business issues with his team. He shares his deep cloud and Microsoft knowledge.

Want to know more? Follow Dick on LinkedIn, where he shares his valuable insights.

Do you want to modernize your tech stack and read more information about it? Read this article: