Velox commentary
06 Oct 2022

Wrap, extend, and strangle

Capital Markets can learn a lot about tackling legacy from other industries.

Manufacturing for instance, has the issue of legacy, in spades, where components built today could be 30+ years more advanced than what’s currently in production.

Tight margins and massively complex upgrade challenges make it more difficult to upgrade the legacy system, so to accommodate, the manufacturing industry has become specialists in the wrap-extend and strangle patterns.

“Legacy equipment can be given similar capabilities by ‘wrapping’ with new functionality and connectivity, therefore extending its reach …increasing its functionality and extending its life because the machine can fulfil the company’s production requirements for a longer period of time before an upgraded replacement is needed.”

Wrap-and-extend-then-strangle are essentially the essence of modernizing.

> Wrap-and-extend greatly extend the life of the old kit, while allowing the new kit to be added and controlled in a consistent way with the old kit.

> Strangle describes how eventually over time new processing gets routed away from old to the new, while the old can be gracefully switched off.

Why’s the strangler called the strangler?

Link to the original article here.

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