The landscape of software development is rapidly evolving, with new tools and approaches emerging to meet the demands of modern businesses. One such innovation is Application Factory, a game-changing approach to automating and industrializing the software development process.

In this episode of CloudStream, host Riz Haque from CGI Global Intellectual Solutions and Innovation sits down with Mikolas Hämäläinen, Cloud Transformation Architect at CGI Finland, to explore how Application Factory is transforming the way businesses approach software development and modernization.

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The Concept of Application Factory

At its core, Application Factory is a conveyor belt for software. But, as Mikolas Hämäläinen explains, building a factory requires careful planning and automation.

“To run a factory, you need to have a lot of things in place, especially automation,” Mikolas begins. “Factories are automated, and in the case of Application Factory, we leverage AI to support the automation process.”

The concept is built on a platform engineering approach, where pre-made architectures, frameworks, templates, and processes are developed to streamline the entire software lifecycle—from product development to application management.

Rather than relying on a “co-pilot” approach or having an assistant help with coding, Application Factory represents the industrialization of software. “It’s not about having an assistant code for you; it’s about automating the complex parts of the process,” Mikolas explains.

AI and Automation as Key Drivers

A key differentiator in Application Factory is its integration with AI as it brings in AI and automation to modernize legacy systems and create new, scalable software solutions. AI helps automate many of the traditionally manual steps in software development, making the process faster and more predictable.

“AI plays a huge role in the factory. It’s about using AI to automate tasks and accelerate decision-making, making the software development process much more efficient.”

Application Factory in Action: How Clients Benefit

For clients, the benefits of Application Factory are clear. The platform allows businesses to revamp their legacy systems and transition to a more modern software environment. “Many of our big customers have legacy systems that need updating,” says Mikolas. “Application Factory helps us operate efficiently, even in these cases. We can take existing documentation and utilize AI to analyze and process it, resulting in faster development times and more predictable outcomes.”

But how do clients actually engage with Application Factory? Mikolas explains that the process is largely automated but still requires a shift in mindset from clients.

“For many clients, it’s about trusting the process. It’s like buying fast food. You know what you want, you know how much it costs, and you know it will be delivered fast with consistent quality.”

The Role of Application Factory in Cloud Journeys

Application Factory is a cloud-native set of tools that plays an essential role in supporting cloud journeys.

“Application Factory is a service that automates software development. It integrates cloud-native components and runs on standardized tools, offering a coherent approach to the entire process,” Mikolas states.

The combination of cloud technology and automation makes Application Factory an integral part of the larger cloud transformation process, allowing businesses to scale faster, improve software quality, and enhance their development capabilities.

Looking Ahead: The Future of Application Factory

As the world of technology continues to evolve, so too will Application Factory. Mikolas sees rapid advancements in AI as a driving force behind future development. “AI is changing quickly, and we need to adapt by incorporating more advanced AI tools into the factory,” he notes.

Looking forward, Mikolas is optimistic about the continued success of Application Factory and its ability to meet the growing demands of clients. “We’re on the right path. We’ve already seen a lot of success in the last few quarters, and as we scale, we’ll only get better at delivering high-quality software solutions.”

Overcoming Challenges and Learning from Failures

Like any complex project, Application Factory has faced its share of challenges. Mikolas recalls a recent setback where AI struggled to understand the intricacies of certain legacy systems.

“We had some trouble a few months ago with the AI not quite understanding what we were trying to do with older systems,” he shares. “But that’s the nature of innovation. Every time we encounter a problem, we invest in fixing it, and everyone benefits in the long run.”

Despite the challenges, Mikolas sees the evolution of Application Factory as a key success story. “We’ve learned a lot from our failures, but we’ve also seen some remarkable successes. Right now, we’re working on some projects that are delivering great results, and even the developers are surprised at how well things are working.”

Application Factory: A Game Changer for Software Development

For Mikolas, Application Factory represents a significant shift in how businesses approach software development. “It’s a game changer because it changes the way you buy software, the way you expect software development to work, and the way we think about scaling these processes,” he explains.

Ultimately, the success of Application Factory relies on a combination of AI, automation, and the talent of the people driving it. “It’s not just about machines; it’s about the people who make the magic happen,” Mikolas concludes.

As businesses continue to navigate their digital transformation journeys, Application Factory is poised to be a key enabler in delivering faster, more efficient, and predictable software development.

Application Factory is more than just a tool—it's a paradigm shift in software development, one that leverages automation, AI, and cloud technology to drive transformation. As Mikolas Hämäläinen explains, the future of software development lies in scaling these processes, and Application Factory is at the forefront of this change.

As organizations continue to embrace cloud transformation, those that adopt industrialized, automated software solutions like Application Factory will be better positioned for success in the ever-evolving digital landscape.