The significant barrier of messy, legacy data is being overcome by AI. Snowflake is developing "agent-driven migrations" that automate the process of moving data from old systems onto modern platforms. This drastically reduces project timelines from multiple years to just a few weeks.

For years, updating legacy systems like bank mainframes running COBOL was prohibitively expensive. Modern AI agents are now so proficient at code migration that these projects are finally feasible. One engineer migrated the entire Bun codebase to a new language in just 11 days, a task that previously would have taken a team a year.

Migrating from legacy enterprise systems was once a multi-year ordeal, creating powerful vendor lock-in. AI now automates the process by analyzing environments, converting code, and validating results. This has reduced migration timelines to as little as 30 days, dramatically lowering switching costs for large companies.

What was once a significant moat for SaaS companies—complex data migration—is collapsing. An AI agent, '10k', completed the core lift of a 10-year Marketo data migration, a project quoted at $100k and one year by a human agency, in a single hour for just $14.21 in compute costs.

AI-driven approaches dramatically reduce the time and cost of modernizing legacy systems. What was once a multi-year, multi-million dollar mainframe project can now be completed in as little as 90 days, fundamentally altering the ROI for tackling technology debt.

The primary moat for many SaaS companies was the complexity and high cost of migrating away from their product. AI agents can now automate this process, eroding that advantage, increasing competition, and giving buyers significant leverage to renegotiate contracts.

Enterprises are trapped by decades of undocumented code. Rather than ripping and replacing, agentic AI can analyze and understand these complex systems. This enables redesign from the inside out and modernizes the core of the business, bridging the gap between business and IT.

Archaic legacy systems like COBOL, AS400, and Lotus Notes historically remained trapped in backlogs due to prohibitive multi-year modernization estimates. AI has transformed the economics of legacy rewrites by accelerating code comprehension, translating legacy operations into agentic workflows, and automating testing, enabling enterprises to compress six-year migration plans down to six-month executions.

Enterprises are finding immediate, high return on investment by using AI to port legacy codebases (like COBOL) to modern languages. This mundane task offers a 2x speed-up over traditional methods, unlocking significant infrastructure savings and even driving new developer hiring.