We are proud to announce that Devsu's proprietary platform, Velx, has been recognized by Gartner as a Representative Vendor in their latest report. This significant recognition validates our belief: the future of software engineering is centered not merely on faster coding, but on achieving autonomous and predictable transformation.

For a long time, the "modernization tax" has been a silent obstacle to enterprise innovation. IT leaders have consistently faced the difficult choice of operating and maintaining existing legacy systems or undertaking risky transformations with unpredictable costs and timelines.

Our recognition underscores how this dilemma is now dissolving as the industry shifts past simple "copilots" toward Agentic AI, autonomous agents capable of executing end-to-end modernization tasks. Velx is leading the way in this new era of predictable transformation.

The $3 Billion Shift

The economics of IT transformation are being fundamentally reshaped. Gartner estimates the total addressable market for AI-augmented application modernization tools is around USD 2.5 to 3 billion.

What’s driving this massive investment? It’s no longer just about "lifting and shifting" workloads to the cloud. Enterprises are facing a perfect storm:

• Legacy Skill Attrition: The workforce capable of maintaining COBOL and other legacy languages is retiring.
• The "Burning Platform": Increasing regulatory pressure, especially in banking, financial services (BFSI), and the public sector, is making technical debt a liability that cannot be ignored.
• The Proliferation of Technical Debt: Organizations are increasingly recognizing that technical debt increases risk, complexity, and cost, leading to a lack of "business fit" for their core applications.

Gartner projects that organizations will use AI-augmented tools in 90% of software modernization projects by 2029, a staggering increase from less than 20% today.

What is Agentic AI in Modernization?

The term "AI-augmented" has evolved. While early tools focused on code completion and documentation, the market is now maturing toward autonomous AI agents. These agents are capable of planning and executing multi-step tasks—such as upgrading a Java version across thousands of files or porting Windows workloads to Linux—while ensuring functional equivalence.

Devsu’s Velx platform is at the forefront of this shift. By combining specialized AI agents with deterministic analysis, we help enterprises solve the primary modernization bottleneck: the lack of knowledge about legacy systems.

The Knowledge Bottleneck

A major hurdle in any modernization project is the loss of subject matter expertise for legacy systems. Meaningful documentation and business rules are often nonexistent. Agentic AI addresses this by:

1. Extracting Business Logic: Automatically extracting and documenting business rules, data flows, and system architecture directly from source code.
2. Architectural Observability: Creating a "digital twin" of the system to map dependencies and data flows before a single line of code is moved.
3. Migration Sequencing: Using AI to plan the detailed sequence of work and perform risk assessments, preventing the migration of technical debt.

The Devsu Human-in-the-Loop Governance

The Gartner report offers a critical reminder: AI can materially accelerate modernization, but it cannot yet fully automate it. Human oversight remains essential.

At Devsu, we advocate for a human-in-the-loop governance model; our focus extends beyond the mere velocity of automation. This ensures that expert human engineers provide critical validation while Velx handles the heavy lifting of code transformation, documentation, and unit test generation. 

This approach is vital for maintaining functional equivalence. By validating AI-generated code against existing legacy behavior through automated unit and regression testing, we help ensure the modernized application performs correctly, preserving core business logic and compliance integrity.

Why Now? The ROI of AI-Augmented Tools

For many organizations, the perceived risks and disruptions of modernization have historically outweighed the benefits. However, the 2026 Gartner findings suggest the ROI is becoming impossible to ignore:

Looking Ahead: A Roadmap for IT Leaders

The race for modernization will be won by those who move from reactive maintenance to proactive, AI-driven evolution. Gartner recommends that software engineering leaders start with "architectural observability". Before changing code, use AI analysis tools to map the entire application, identify dependencies and complexity hotspots, and create a data-driven modernization roadmap.

As a Representative Vendor in the 2026 Market Guide, Devsu is ready to partner with you on this journey. Our Velx platform is designed specifically for large-scale legacy modernization—including .NET, Java refactoring, and mainframe platforms—offering the precision and specialized AI agents that global enterprises demand.

Is your legacy system holding back your innovation?

Whether you are dealing with a "burning platform" of legacy skill attrition or looking to refactor monoliths into modern frameworks, the age of Agentic AI is here.

Learn more about how Devsu Velx can accelerate your modernization roadmap.