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System architecture diagram basics & best practices

architecture diagram

Explaining a complex software system to your team or stakeholders can be challenging, especially in fast-paced agile environments where systems evolve rapidly and during cloud migrations when change is constant. Architecture diagrams give a clear way to represent system structures, relationships, and interactions, making it easier to understand, monitor architectural drift, and communicate your ideas. The right tools keep the diagram in sync with the implementation, fostering alignment across teams even in the midst of rapid releases and dynamic microservices architectures. 

Capturing the actual architecture is essential before cloud migration to identify the best path for modernization. It remains just as important afterward, in a microservices world, to prevent drift and the return of architectural technical debt.

In this guide, we’ll explore the importance of software architecture diagrams, outline common types, and offer practical advice to create diagrams that enhance collaboration and decision-making even as evolving functionality reshapes existing architecture. Whether troubleshooting a legacy system or designing something new, you’ll walk away with actionable insights to communicate your ideas effectively and keep your entire team aligned and informed.

What is an architecture diagram?

An architecture diagram is a blueprint of a software system, showcasing its core components, their interconnections, and the communication channels that drive functionality. Unlike flowcharts that describe behavioral control flows, architecture diagrams capture the structural aspects of the system, including modules, databases, services, and external integrations. This comprehensive overview enables developers, architects, and stakeholders to grasp the system’s organization, identify dependencies, and foresee potential challenges. Because architecture diagrams provide a clear snapshot of the system’s design, they are essential tools for planning, development, and ongoing cloud maintenance. Modern approaches emphasize structural aspects, because the core architecture of a system tends to evolve gradually, providing a stable foundation, while the behavior of individual components and their interactions are constantly changing as new features and updates are introduced.

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Key features and purpose

Architecture diagrams show how a software system is structured by focusing on key elements like components, connectors, and relationships.

  • Components: These represent the system’s fundamental building blocks, such as individual modules, databases, services, and external systems. For instance, in a web application, components include mobile and web based clients, authentication service, load balancers, and database engines.
  • Relationships: These define how components are related and interact with each other at the logical level. Architecture diagrams help establish relationships between components, making it easier to identify dependencies and communication pathways. For example, a mobile client app may use an identity provider service for single sign-on using an SDK.  Understanding these relationships helps identify dependencies and potential bottlenecks within the system. 
  • Connectors: These depict the messaging interactions and data flow channels between components. Connectors can show various communication protocols, such as HTTP requests between a front-end application and an API server or database connections between an application and its database.

Architecture diagrams are visual tools that help explain the structure of a system, making it easier for stakeholders to understand how everything fits together. They break down complex systems at varying abstraction levels, making the information more accessible to people with different levels of technical knowledge. These diagrams are important documentation and a reference for building and maintaining the system over time. They also play a key role in decision-making because they provide a clear view of the system’s design, which can be helpful when it comes to planning for scalability, performance, and other technical details. Architecture diagrams are invaluable for troubleshooting because they help identify potential issues or bottlenecks.

During the planning phase, they guide the design process, offering a roadmap for scalability and modularity. They also ensure the system meets security and regulatory standards by showing how data moves and where sensitive information is stored or processed.

Why architecture diagrams matter in system design

Modern software systems are increasingly complex, often involving many components, services, and integrations. While advanced tools such as Microsoft Copilot, Sonarqube/cloud, APMs and others are valuable to ensure code quality and performance, they don’t replace the need to visually represent the system’s architecture.

Keeping diagrams updated to accurately reflect the system’s architecture is essential for risk mitigation and effective communication throughout development.

enterprise architecture cartoon

The importance of visual system design includes the following key aspects:

Enabling informed decision-making

A comprehensive architecture diagram allows developers and architects to understand the overarching system at a glance. For example, when deciding between a microservices architecture and a monolithic design, a detailed diagram can highlight how services interact, helping stakeholders assess scalability, maintainability, and deployment implications.

Accelerating development time

With a clear architectural blueprint, development teams can work more efficiently. The diagram is a reference point that reduces ambiguity, aligns team members on system components, and streamlines the development process. This clarity minimizes misunderstandings and rework, thereby shortening development cycles.

Enhancing system maintainability

Maintenance and updates are inevitable in software development. Architecture diagrams make it easier to identify which components may be affected by a change. For instance, if a particular service needs an update, the diagram can help determine its dependencies, ensuring that modifications do not inadvertently disrupt other parts of the system.

At the end of the day, architecture diagrams are more than just visual aids; they facilitate better design, efficient development, cloud migration and modernization strategy, and smoother maintenance of the systems they describe. By clearly depicting the system, they help teams navigate complexities and collaborate effectively to build robust software solutions.

Common types of architecture diagrams

No single architecture diagram can capture every aspect of a system’s complexity. Different types of architectural diagrams are intended to highlight a viewpoint about the system’s components, interactions, and perspectives. Below are some of the most common types of architecture diagrams and their unique applications.

Architecture diagrams in UML

Unified Modeling Language (UML), defined by the Object Management Group (OMG), remains one of the most widely used modeling standards in software engineering. It is a staple in software engineering education, supported by numerous tools, and many methodologies have adopted a subset of its diagrams, making it a versatile choice for system design. Some of the tools are open source (like PlantUML) and some are commercial tools (like MagicDraw and Rhapsody) with advanced capabilities like code generation, simulation and formal verification of models.

Of UML’s 14 diagram types, class and object diagrams are among the most commonly used, often combined into a single diagram to describe architecture at different abstraction levels. These diagrams define relationships between classes and objects, such as association, aggregation, composition, inheritance, realization, and dependency, which can be further customized using UML profiling extensions. UML class diagrams are commonly used to define data models, representing how data is organized and related within the system. While UML allows for semantically precise specifications, it can also introduce complexity or potential over-specification, potentially causing confusion among stakeholders.

Here is an example UML class diagram along with an explanation of its various elements.

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uml class diagram

Source: https://www.uml-diagrams.org/class-diagrams-overview.html

And here is an example object diagram from the same source:

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object diagram

While developers use component and deployment diagrams less frequently in UML, these diagrams play a crucial role in showcasing high-level architectural elements. The following is an example of a deployment diagram:

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deployment diagram

In summary, UML architectural diagrams are among the most expressive and detailed tools for conveying complex system designs. They are best suited for technical stakeholders, such as architects conducting deep-dive reviews or developers optimizing an architecture based on detailed requirements. However, effectively using UML requires a solid understanding of the language and a well-defined methodology, contributing to its declining adoption.

C4 model

The C4 model, created by Simon Brown between 2006 and 2011, builds on the foundations of UML as a lean, informal approach to visually describe software architecture. Its simplicity and practicality have made it increasingly popular since the late 2010s.

Unlike UML, the C4 model focuses on the foundational building blocks of a system — its structure — by organizing them into four hierarchical levels of abstraction: context, containers, components, and code. This organization provides a clear, intuitive way to understand and communicate architectural designs. Some of the UML tools, like PlantUML, also support C4 diagrams, but C4 is still not as widely accepted as UML and has less tool support overall.

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c4 model

This context diagram (shown at the highest level of abstraction) represents an Internet Banking System along with its roles and the external systems with which it interacts.

system context diagram for internet banking system

This container diagram “zooms in” on the Internet Banking System from the context diagram above. In C4, a container represents a runnable or deployable unit, such as an application, database, or filesystem. These diagrams show how the system assigns capabilities and responsibilities to containers, details key technology choices, maps dependencies, and outlines communication channels within the system and with external entities like users or other systems.

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container diagram internet banking system

Below is a component diagram that zooms in on the API application container from the above container diagram. This diagram reveals the internal structure of the container, detailing its components, the functionality it provides and requires, its internal and external relationships, and the implementation technologies used.

component diagram for internet banking system
Diagram source: https://github.com/plantuml-stdlib/C4-PlantUML/blob/master/samples/C4CoreDiagrams.md

C4 introduces a clear and intuitive hierarchy, where container, component, and code diagrams provide progressively detailed “zoom-in” views of entities at higher abstraction levels. This structure offers a straightforward and effective way to design and communicate architecture. 

In summary, C4 offers standardized, tool- and method-independent views, making it versatile for communicating designs to various stakeholders. However, it lacks the level of detail and richness that UML provides for intricate specifications.

Architectural diagrams for designing cloud solutions

Cloud vendors like AWS, Azure, and Google provide tools for creating architecture diagrams to design and communicate solutions deployed on their platforms. These diagrams often use iconography to represent various cloud services and arrows to illustrate communication paths or data flows. They typically detail networking elements such as subnets, VPCs, routers, and gateways since these are crucial for cloud architecture. Additionally, cloud architecture diagrams often illustrate the physical layout of hardware and software resources to optimize deployment and communication between components.

Here is an example diagram from AWS:

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aws example diagram

A typical pattern which is shown in the above diagram is to add numbered labels on the lines (as shown above) and have a list describing a main interaction across the components (as shown here)

Free drawing tools such as https://app.diagrams.net/ enable drawing these diagrams by having the icons of the various cloud services out of the box. Other more cloud-specific commercial tools like Cloudcraft and Hava.io offer various automations such as diagram synthesis from an existing cloud deployment, operational costs calculation and more.

It is nearly impossible to design and communicate cloud solutions without visualizing the architecture. Unlike UML and C4, cloud architecture diagrams focus on the deployment of cloud services within the cloud infrastructure, illustrating their configuration, interactions, and usage in the system.

System and application architecture diagrams

Other widely used diagrams include system architecture and application architecture diagrams. System architecture diagrams provide a high-level overview of an entire system, showcasing its components—hardware, software, databases, and network configurations—and their interactions. In contrast, application architecture diagrams focus on a specific application within the system, highlighting internal elements such as the user interface, business logic, and integrations with databases or external services. These diagrams offer stakeholders valuable insights into the overall system structure, operational flow, and application-specific details.

Benefits of using architecture diagrams

Architecture diagrams are essential tools that bring significant value throughout the software development lifecycle. By providing a clear visual representation of system components, interactions, and dependencies, they help streamline communication, identify risks early, and support informed decision-making. Here are some of the key benefits:

Enhancing collaboration and communication

Architecture diagrams are a visual tool that connects technical and non-technical stakeholders. By illustrating the system’s structure and components, they help everyone—developers, designers, project managers, and clients—understand how the system works. This clarity reduces misunderstandings and ensures that everyone stays aligned throughout the development process.

Risk mitigation and issue identification

Visualizing the system’s architecture early in the process makes identifying potential risks, bottlenecks, and design flaws easier. Spotting these issues upfront allows developers to address them proactively, preventing problems from escalating during development or after deployment. This leads to more reliable and robust systems.

Streamlining scalability and efficiency

Architecture diagrams help teams understand system dependencies and interactions, which is crucial for planning cloud migration, future scalability, and maintaining efficiency. By visualizing how components interact, developers can make well-informed decisions about scaling, optimizing performance, and planning for growth.

In short, architecture diagrams play a crucial role in creating better software by improving communication, minimizing risks, and supporting scalability and efficiency. By integrating them into your development process, you can build systems that are more reliable, maintainable, and better equipped to grow with your business and meet the evolving needs of your users.

Challenges with traditional architecture diagrams

While architecture diagrams are vital tools for planning and communication, they often face a significant challenge: keeping up with the pace of modern software development. Diagrams are typically created during the initial design and development stages when teams map out how they expect the system to function. However, as the software evolves—through updates, new features, and shifting requirements—the reality of the system’s architecture can drift far from the original design.

This architectural drift occurs because manual updates to diagrams are time-consuming, easily deprioritized, and prone to oversight. The result is a disconnect: diagrams remain static artifacts while the software grows more dynamic and complex. Teams are left relying on outdated visuals that fail to reflect the actual architecture, making it harder to troubleshoot issues, onboard new developers, or plan for scalability.

This challenge is especially acute after cloud migration and modernization. As organizations modernize applications—often transforming monoliths into microservices—they gain development velocity. But without capturing and monitoring the architecture, that speed can quickly accelerate architectural drift.

In the early 2000s, some UML modeling tools, like IBM Rhapsody, attempted to tackle this challenge with features like code generation (turning models into code) and round-tripping (syncing code back into models). They even integrated these modeling capabilities into popular integrated development environments (IDE) like Eclipse, allowing developers to work on both models and code as sort of different views in a single environment. However, this approach didn’t catch on. Many developers found the auto-generated code unsatisfactory and opted to write their own code using various frameworks and tech stacks. As a result, the diagrams quickly became irrelevant.

Bridging the gap: The need for dynamic, real-time architecture

Modern tools and practices must move beyond static representations to deliver value and real-time architectural insights. Automated solutions can continuously monitor and visualize system components and interactions as they change, ensuring diagrams stay accurate and actionable. Tools such as vFunction automatically document your live application architecture, before cloud migration and post modernization, generating up-to-date visualizations that reflect the actual system and its runtime interactions, not just the idealized design. By ensuring architecture diagrams keep pace with the working system, teams can make informed decisions, uncover hidden dependencies, and confidently manage complexity as their software evolves post modernization.

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DevOps and integration: The evolving role of architecture diagrams

As software development evolves with the rise of DevOps practices and microservices architecture, the role of architecture diagrams has expanded to meet new challenges. DevOps architecture diagrams are now vital for visualizing the components of a DevOps system and illustrating how these components interact throughout the entire pipeline—from code integration to deployment. These diagrams help development teams understand the flow of processes, pinpoint areas for automation, and ensure that the devops system operates smoothly and efficiently.

Integration architecture diagrams, meanwhile, focus on how different components interact with each other and with external systems. By highlighting the protocols and methods used for integration, these diagrams make it easier to identify potential issues, streamline communication, and ensure seamless data flow across the system. In environments built on microservices architecture, integration architecture diagrams are especially valuable for mapping out the complex web of service interactions and dependencies.

Architecture diagrams provide a common language for development teams, stakeholders, and even external partners, ensuring that everyone has a shared understanding of how the system works. By visually representing how components interact, these diagrams facilitate collaboration, reduce misunderstandings, and help teams build more resilient and adaptable software systems.

Step-by-step guidelines for creating and using architecture diagrams

Architecture diagrams, including the above mentioned types, cannot be formally validated (except in some advanced UML cases with specialized tools). To avoid confusion, follow a systematic approach when creating and using these diagrams. For instance, inconsistencies or duplications between diagrams can lead to misunderstandings, as can ambiguous notations. Be cautious with elements like colors, which may not have a universally understood meaning, or arrows and lines that could be misinterpreted, such as representing data flows instead of dependencies. A clear and consistent approach ensures better communication and understanding among stakeholders.

Before we go into the step-by-step procedure, here are a few guidelines:

  1. Using standardized symbols and notations: Using standardized symbols and notations is a way to avoid misinterpretations. If you draw a cloud architecture, make sure to use the correct icons and labels by selecting them from a catalog. If you are using C4, make sure to follow the notation and use the right terminology, if you are using UML make sure to follow the standard and opt to use a tool that can check and enforce semantic correctness. This will also save lengthy explanations when presenting to stakeholders familiar with the language.
  2. Focusing on clarity and simplicity: Keeping your architecture diagrams clear and simple is essential for effective communication. It’s best to avoid too many details that can make the diagram confusing. Instead, focus on the key components and their interactions. For example, when mapping out a web application’s architecture, focus on the frontend, backend, database, and external APIs without including every minor module. Use concise, clear labels and consistent symbols to ensure everyone can easily understand the system’s structure. Deployment architecture diagrams should also clearly indicate deployment environments, such as development, staging, and production, to facilitate planning and optimization.
  3. Selecting the right diagram type and tool: As discussed earlier, each diagram type serves a specific purpose. Select the type that best suits your needs and the information you want to convey. Leverage diagramming tools with helpful features like automated layouts, version control, and collaboration options. These tools can make the diagramming process more efficient and improve the quality of your diagrams.
  4. Make the diagrams visually appealing: Aesthetic diagrams are easier to communicate and appeal more to stakeholders, in the same way that aesthetic presentations and documents are better received by stakeholders.

Here is a high-level step-by-step procedure to design an architecture of a new system:

Step 1: Choose the right tool and language according to your purpose

The stakeholders and purpose of the diagram should determine the language and tool used for the specification. For cloud architecture use tools that support the iconography and conventions of your cloud provider such as draw.io, lucidchart, etc. For high level architectural specification use one or more of the C4 diagrams, a list of available tools is specified here. For detailed technical specifications for technical stakeholders use UML, which has a wide set of tools. For a list of UML tools click see this Wikipedia page.

Step 2: Start from the system context and elaborate the internal structures

When specifying a new architecture, it is recommended to start the specification with the roles and external entities and the relationship with the system as a whole and then elaborate the subsystems and their components and then zoom in to the components internal structure. Capturing user interactions in architecture diagrams is important for understanding how user actions trigger events and system responses, especially in event-driven architectures. This is consistent with the C4 approach of context->containers->components->code, but the same holds for cloud architecture diagrams and UML diagrams.

If needed, include non-functional elements or resources that are key to the architecture such as subnets, protocols and databases. 

Step 3: Verify the architecture with a few scenarios

Choose a few main scenarios and verify that the components and the relationships support them. This will also help in reviewing the architecture with others. You can do it at the system context level as well as at the detailed design level. A common technique to do this is to label the steps on top of the relationships and describe the interaction. Another way is to use UML sequence diagrams to describe the interactions across the components and ensure that every communication between lifelines has a supporting relation in the architecture. Sequence diagrams provide the means to include details such as alternative and parallels interactions, loops and more and are frequently used for detailed designs. Sequence Diagrams are useful in defining APIs as well as serving as a basis for the definition of unit, integration and system tests. 

Step 4: Review, annotate and iterate

Once you have a baseline architecture, always review it with relevant stakeholders, add their comments on top of the diagrams and make the necessary refinements based on their feedback. Some tools have built in collaboration features that include versioning, annotations and more.

Creating an architecture diagram for an existing system

Designing architecture diagrams for new systems is straightforward, but understanding and communicating the architecture of an existing complex system—whether monolithic or distributed—can be significantly more challenging. Reverse-engineering code to create diagrams is difficult, especially in distributed applications with multiple languages and frameworks. Even tools like Enterprise Architect or SmartDraw often produce outputs that are overly complex and hard to interpret.

The C4 model simplifies software visualization with context, container, component, and code diagrams. Using OpenTelemetry, vFunction analyzes distributed architectures and allows teams to export live architecture into C4 container diagrams for visualization with tools like PlantUML. This approach helps engineers conceptualize, communicate, and manage architectures more effectively, especially in a post-modernization distributed environment.

vFunction can also import C4 container diagrams as a reference architecture and create TODO items (tasks) based on its analysis capabilities to bridge the gaps between the current architecture and the to-be architecture.

With its “architecture as code” capability, vFunction aligns live systems with C4 reference diagrams, detecting architectural drift and ensuring real-time flows match the intended design. It helps teams understand changes, maintain architectural integrity, and keep systems evolving cohesively in the cloud.

microservices architecture mapped in vfunction
Microservices architecture visualized in vFunction and exported as “architecture as code” to PlantUML using the C4 framework.
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plant uml

The critical role of architecture diagrams in software development

In software development, systems can become so complex that explaining ideas through words or traditional documentation often falls short. Architecture diagrams simplify this complexity, providing a clear and concise way to communicate intricate concepts, including your system’s structure, components, and interactions. For these diagrams to truly add value, they must break out of the ivory tower—evolving from static, theoretical artifacts into dynamic, living tools that accurately reflect the current state of your software on premise or in the cloud..

Keeping these diagrams accurate with minimal effort from developers allows them to integrate into day-to-day workflows seamlessly. This enables teams to foster collaboration, uncover hidden issues, and ensure systems evolve with clarity and purpose. You can build more efficient, maintainable, and scalable software by incorporating these diagrams into your development toolkit. To learn more about how vFunction helps keep architecture diagrams aligned with real-time applications, visit our architectural observability for microservices page or contact us.

The 5 Don’ts of Legacy Application Migration

Companies today depend on legacy applications for some of their most business-critical processing. Many businesses rely on these systems to support essential business processes and daily operations. Legacy software and existing applications often present significant challenges for organizations seeking to modernize their IT environments.

In many cases, these apps still perform their intended functions quite well. However, to retain or expand their value in this era of accelerated innovation, they must be fully integrated into today’s dominant technological environment: the cloud. Digital transformation is a key driver for organizations to migrate legacy applications, enabling them to stay competitive and agile. Legacy application migration refers to the process by which organizations migrate their legacy applications—moving outdated software to modern platforms or cloud platforms — to enhance performance, security, and scalability.

Legacy systems struggle, and that’s why legacy application migration has become a high priority for so many organizations. Migrating to cloud platforms and modern platforms offers benefits such as cost savings, reduced operational costs, improved performance, and improved efficiency, making it a strategic move for businesses. A recent survey reveals that 48% of companies planned to migrate at least half of their apps to the cloud within the past year.

Yet for many organizations, the ROI they’ll reap from their legacy application migration efforts will fall short of expectations. Maintenance costs, the need for significant code changes, and ensuring data integrity during migration are common challenges. According to PricewaterhouseCoopers (PwC), “53% of companies have yet to reap substantial value from their cloud investments.” And McKinsey estimates that companies will waste approximately $100 billion on their application migration projects between 2021 and 2024.

Why Legacy System and Application Migration Falls Short

Why does legacy application migration so often fail to provide the expected benefits? In many cases, it’s because companies believe the quickest and easiest way to modernize their legacy apps is to move them to the cloud as-is, with no substantial changes to an app’s architecture or codebase. However, significant changes to the application architecture or code may be necessary to ensure compatibility with modern platforms and fully realize the benefits of migration.

However, that methodology, commonly referred to as “lift and shift,” has proven to be fundamentally inadequate for fully leveraging the benefits of the cloud. Yet companies often adopt it as the foundation for their app modernization efforts based on some widespread but fallacious beliefs about the advantages of that approach. A thorough assessment process should include analyzing the application architecture, reviewing existing applications, and evaluating the current system and existing systems to identify limitations and plan for modernization.

In this article, we want to examine some of the most pernicious lift and shift fallacies that frequently lead companies astray in their efforts to modernize their legacy app portfolios. Outdated legacy software, old system architectures, and old systems often present challenges such as high maintenance costs, integration issues, and technical debt. Migrating to the cloud can help reduce operational costs, lower maintenance costs, and deliver improved performance and improved scalability. The legacy application migration process should be carefully planned to ensure minimal disruption, maintain data integrity, and follow a solid modernization strategy. Let’s start with an issue that’s fundamental to the inadequacy of lift and shift as a company’s primary method for moving apps to the cloud: technical debt.

Understanding Business Needs

Before initiating any legacy system migration, it’s essential to have a clear understanding of your organization’s business needs and objectives. The migration process should be driven by specific goals—whether that’s improving efficiency, reducing operational costs, enhancing security, or enabling access to data on mobile devices. Begin by thoroughly assessing your current legacy system, examining its architecture, functionality, and performance to identify areas that require improvement and to determine the optimal migration strategy for your business.

A successful legacy system migration strategy also requires a careful evaluation of how the migration will impact ongoing business operations. Consider potential downtime, service disruptions, and the need for high data protection measures, especially if your organization handles sensitive information or faces significant security threats. By aligning the migration process with your business needs, you can ensure that the new system not only meets current requirements but is also flexible enough to adapt to future demands.

Taking the time to understand your business needs helps you avoid common pitfalls, such as migration fails or unexpected operational costs. It also enables you to select the best migration strategy—one that supports business continuity, minimizes risk, and delivers measurable value. Ultimately, a well-planned migration process tailored to your organization’s unique needs is the foundation for a smooth transition to a modern, secure, and efficient new system.

Pre-Migration Considerations

Migrating legacy applications to a new environment is a complex undertaking that requires careful planning and preparation. One of the first and most critical decisions is selecting the right cloud platform, as compatibility with your existing legacy system can vary significantly between providers. Evaluating the strengths and limitations of different cloud services, including cloud native applications and hybrid cloud solutions, will help you choose a cloud solution that aligns with your technical and business requirements.

Data migration is another key consideration. Protecting against data loss and security issues is paramount, especially when dealing with outdated technology that may not meet modern security standards. Develop a comprehensive migration plan that outlines a clear timeline, budget, and allocation of resources. This plan should also address user training needs to ensure a smooth transition for your team and minimize operational disruptions.

Business continuity should remain a top priority throughout the migration process. Strategies for minimizing downtime and maintaining essential business operations are necessary to avoid costly interruptions. Additionally, consider whether your migration project requires specialized knowledge or expertise, particularly if your legacy applications are built on outdated technologies that may present unique technical challenges.

By addressing these pre-migration considerations, organizations can set the stage for a successful legacy migration. Careful planning, risk assessment, and the right mix of cloud services will help ensure a seamless transition to a new system, allowing your business to fully leverage the benefits of modern technology while avoiding common pitfalls associated with legacy system migration.

The Role of Technical Debt

The greatest hindrance to a company fully benefiting from the cloud is the failure to modernize their applications . Monolithic applications carry a large amount of architectural technical debt that make integrating them into the cloud environment a complex, time-consuming, risky, and sometimes nearly impossible undertaking. And that, in turn, can negatively impact a company’s long-term marketplace success. A McKinsey report on technical debt puts it this way:

“Poor management of tech debt hamstrings companies’ ability to compete. The complications created by old and outdated systems can make integrating new products and capabilities prohibitively costly.”

But what, exactly, is technical debt? Here’s a concise yet informative definition:

“Technical debt is the cost incurred when poor design and/or implementation decisions are taken for the sake of moving fast in the short-term instead of a better approach that would take longer but preserve the efficiency, maintainability, and sanity of the codebase.”

By modern design standards, legacy apps are, almost by definition, permeated with “poor design and/or implementation decisions.” For example, such apps are typically structured as monoliths, meaning that the codebase (perhaps millions of lines of code) is a single unit with functional implementations and dependencies interwoven throughout. 

Such code can be a nightmare to maintain or upgrade since even small changes can ripple through the codebase in unexpected ways that have the potential to cause the entire app to fail.

Related: Eliminating Technical Debt: Where to Start?

Not only does technical debt make legacy code opaque (hard to understand), brittle (easy to break), and inflexible (hard to update), but it also acts as a drag on innovation. According to the McKinsey technical debt report, CIOs say they’re having to divert 10% to 20% of the budget initially allocated for new product development to dealing with technical debt. On the other hand, McKinsey also found that by effectively managing technical debt, companies can free their engineers to spend up to 50% more of their time on innovation.

The Fallacies of Lift and Shift

Because it involves little to no change to an app’s architecture or code, lift and shift typically moves apps into the cloud faster and with less engineering effort than other legacy application migration approaches. However, the substantial benefits companies expect to reap from that accomplishment rarely materialize because those expectations are often based on flawed assumptions about the actual benefits of simply migrating legacy apps to the cloud.

Let’s look at some of those fallacies.

Fallacy #1: Lift and Shift = Modernization

Companies often migrate their legacy apps to the cloud as a means, they think, of modernizing them. But in reality, simple as-is migration (which is what lift and shift is all about) has very little to do with true modernization. To see why, let’s look at a definition of application modernization from industry analyst David Weldon:

“Application modernization is the process of taking old applications and the platforms they run on and making them ‘new’ again by replacing or updating each with modern features and capabilities that better align with current business needs.”

Lift and shift migration, which by definition transfers apps to the cloud with as little change as possible, does nothing to update them “with modern features and capabilities.” If the app was an opaque, brittle, inflexible monolith in the data center, it remains exactly that, with all the disadvantages and limitations of the monolithic architecture, when lifted and shifted to the cloud. That’s why migration alone has little chance of substantially improving the agility, scalability, and cost-effectiveness of a company’s legacy apps.

True modernization involves refactoring apps from monoliths to a cloud-native microservices architecture. Only then can legacy apps reap the benefits of complete integration into the cloud ecosystem. In contrast, lift and shift migration only defers the real work of modernization to some future time.

Fallacy #2: Lift and Shift Is Faster

It’s true that lift and shift migration is usually the quickest way to get apps into the cloud. But cloud migration is often not the quickest way of making apps productive in the cloud. That’s because cloud management of apps that were never designed for that environment, and that retain all the technical debt and other issues they had in the data center, can be a complex, time-consuming, and costly process.

The ITPro tech news site provides a good example of the kind of post-migration issues that can negate or even reverse the supposed speed advantage of lift and shift:

“Compatibility is the first issue that companies are liable to run into with lift-and-shift; particularly when dealing with legacy applications, there’s a good chance the original code relies on old, outdated software, or defunct libraries. This could make running that app in the cloud difficult, if not impossible, without modification.”

To make matters worse, the complexity and interconnectedness of monolithic codebases can make anticipating potential compatibility or dependency issues prior to migration extremely difficult.

Fallacy #3: Lift and Shift Is Easier

In the past, architects lacked the tools needed for generating the hard data required for building a business case to justify complex modernization projects. This made lift and shift migration appear to be the easiest path toward modernization.

But today’s advanced AI-based application modernization platforms provide comprehensive analysis tools that enable you to present a compelling, data-driven business case demonstrating that from both technical and business perspectives, the long-term ROI of true modernization far exceeds that of simple migration.

Fallacy #4: Migration Is Cheaper

Because lift and shift migration avoids the costs associated with upgrading the code or structure of monolithic legacy apps, it seems to be the least expensive alternative. In reality, monoliths are the most expensive architecture to run in the cloud because they can’t take advantage of the elasticity and adaptability of that environment.

Related: Migrating Monolithic Applications to Microservices Architecture

Migrated monolithic apps still require the same CPU, memory, and storage resources they did in the data center, but the costs of providing those resources in the cloud may be even greater than they were on-prem. IBM puts it this way:

An application that’s only partially optimized for the cloud environment may never realize the potential savings of (the) cloud and may actually cost more to run on the cloud in the long run.

IBM also notes that because existing licenses for software running on-site may not be valid for the cloud, “licensing costs and restrictions may make lift and shift migration prohibitively expensive or even legally impossible.”

Fallacy #5: Migration Reduces Your Technical Debt

As we’ve seen, minimizing technical debt is critical for effectively modernizing legacy apps. But when apps are simply migrated to the cloud, they take all their technical debt with them and often pick up more when they arrive. For example, some migrated apps may develop debilitating cloud latency issues that weren’t a factor when the app was running on-site.

So, migration alone does nothing to reduce technical debt, and may even make it worse.

How to Truly Modernize

In a recent technical debt report, KPMG declared that “Getting a handle on it [technical debt] is mission-critical and essential for success in the modern technology-enabled business environment.”

If your company relies on legacy app processing for important aspects of your mission, it’s critical that you prioritize true modernization; that is, not just migrating your essential apps to the cloud, but refactoring them to give them full cloud-native capabilities while simultaneously eliminating or minimizing technical debt.

The first step is to conduct a comprehensive analysis of your legacy app portfolio to determine the amount and type of technical debt each app is carrying. With that data, you can then develop (and justify) a detailed modernization plan.

Here’s where an advanced modernization tool with AI-based application analysis capabilities can significantly streamline the entire process. The vFunction platform can automatically analyze the sources and extent of technical debt in your apps, and provide quantified measures of its negative impact on current operations and your ability to innovate for the future.

If you’d like to move beyond legacy application migration to true legacy app modernization, vFunction can help. Contact us today to see how it works.

Tools to Make the Transformation from Monolith to Microservices Easier

The choice to move on from outdated legacy software is by no means a small feat. And yet, in many cases it’s essential. According to a 2022 survey, 79% of IT leaders find themselves held back in their digital transformation processes by outdated technology. Whether you want to move to modularized versions of monoliths or microservices, the best time to start is now. The migration process begins with assessing your existing architecture as the starting point for transformation. If you decide that cloud-based microservices is best for your organization, here’s how you can transform your monoliths into microservices.

Building a better software architecture comes with a wide range of benefits, from more efficient software builds and functionality to easing the strain on your technical personnel. But it cannot happen automatically. The process typically involves moving from a monolithic architecture to a microservices-based approach.

Instead, you need a strategic and comprehensive process that addresses how to transform monoliths to microservices. Initial planning is crucial before starting the transformation, as it helps establish migration patterns and strategies for a successful transition. That process, in turn, relies in large part on the right tools to help you succeed.

So let’s get started. In this guide, we’ll cover both the basics of a monolith-to-microservices transformation and the tools that can help with that process — including some tips on how to select a tool specifically designed to help your transformation succeed.

Just the Basics: How to Transform Monoliths to Microservices Architecture

Designed as a solitary, internally focused system, monolith architecture includes everything the user needs—from a database to interfaces. But it also lacks flexibility, which can make microservices a more attractive option for smaller teams moving to more agile alternatives. But of course, unless you’re starting from scratch, you cannot simply turn the page to this more dynamic environment. Instead, you need to know how to transform monoliths to microservices.

Related: Is Refactoring to Microservices the Key to Scalability?

While the nuances of that process go beyond the scope of this guide, it bears mentioning just what steps are involved in it—and where the right tools to deliver that transformation enter the equation.

  1. Assess your current software architecture. While it can be difficult to dig to the bottom of years-old monoliths, architectural observability can play a key role in this step.
  2. Determine your migration approach. There are several routes you can take here. Familiarize yourself with the Seven R’s of Cloud Migration—your approach will also determine what tools you need.
  3. Establish continuous modernization. A successful migration from monolith to microservices is not a one-time effort. Instead, it’s only the start of an ongoing effort to keep optimizing your architecture over time.

Each of these steps takes significant time, expertise, and strategy. Each of them, though, can be improved and streamlined with the right tools.

Domain-Driven Design: Laying the Foundation for Microservices

Domain-Driven Design (DDD) is a foundational approach when transitioning from a monolithic system to a microservices architecture. By focusing on the core business domain and its underlying logic, DDD enables teams to break down complex applications into well-defined, manageable components. Through the creation of a domain model, developers can map out the essential entities, value objects, and aggregates that represent the heart of the business. This model not only clarifies the business logic but also guides the decomposition of the monolithic system into independent microservices, each responsible for a specific business capability.

Applying domain driven design ensures that each microservice is closely aligned with the business domain, reducing unnecessary dependencies and making the architecture more adaptable to change. DDD also fosters a common language among developers, architects, and business stakeholders, streamlining collaboration and ensuring that the microservices architecture remains in sync with evolving business goals. By laying this groundwork, organizations can create a robust, scalable, and maintainable microservices architecture that genuinely reflects their business priorities.

Four Types of Tools You’ll Need to Ease the Monolith to Microservices Transformation

Across industries, a number of tools have established processes that can help with the transition from a monolith architecture to microservices. Each of them covers different areas of the process, ultimately working together to help you build a successful transformation process.

1. Architectural Observability Tools

Architectural observability is a crucial first step in any microservices transformation. As mentioned above, it allows you to get a full picture of the current monolith to be transformed, which establishes the baseline and steps you need to take. Especially for complex platforms, that process can be immensely cumbersome—until you find the right tool for it.

Observability tools are centralized platforms that visualize the data streaming from your application. Based on that data, you can better understand the nature of the software, including anything from its behavior to the infrastructure that led to the data delivery to begin with.

Unlike APM and observability tools that focus on understanding metrics, logs, and traces, architectural observability focuses on the foundational pieces of your software. With the right tools, you will be able to incrementally identify and address architectural drift while also managing the accumulation of architectural components, decisions, and drift that can make monoliths so difficult to manage. 

The right tools for architectural observability can help establish the foundation for how to transform monoliths to microservices. Only full observability allows you to understand just where—and how—you can begin your transformation process.

2. Software Replatforming Tools

Replatforming is the process of taking legacy software and shifting it to a cloud environment. But it’s not just a one-to-one replacement; instead, some modifications are made to optimize the platform. While not a true transformation from monolith to microservices, some of these modifications can still move your architecture in the right direction. Replatforming can also lay the groundwork for continuous deployment by modernizing the underlying infrastructure, making it easier to adopt rapid and independent deployment cycles in the future.

You’ll find a plethora of tools that help with this process. For example, Azure Migrate is a Microsoft service designed to move your software to the Azure platform, with optimization steps included in the process. AWS Application Migration and Google Cloud Migration Tools achieve a similar goal.

Related: The Best Java Monolith Migration Tools

Each of these tools, of course, is optimized to migrate your architecture to the cloud system to which they’re attached. In their goal of streamlining that migration, they offer some optimization, but the process still falls short of a complete monolith to microservices transformation—which is where refactoring tools enter the equation.

3. Software Refactoring Tools

Among the Seven R’s of Cloud Migration, refactoring offers the best mix of streamlining the migration and creating a true transformation from monolith to microservices. It focuses on changing the fundamental code of your application—without changing its core functionality. This process can quickly become resource-intensive, and it can also increase code complexity, making it essential to manage and monitor the system carefully. Refactoring tools can make it a more realistic and efficient option.

The right refactoring tools will take on multiple dimensions. The process begins with dynamic observations that track exactly how the current architecture operates, which then identifies the ways in which a monolith can split into multiple microservices. It all happens dynamically, maximizing the accuracy of the analysis to avoid potential pitfalls or blind spots static analytics might miss.

And that’s just the beginning. The right tool takes that analysis and begins to split up services while minimizing dependencies. When planning migration strategies, it’s crucial to consider both reversible and irreversible decisions, as reversible decisions enable easier risk management and correction of mistakes. Much of that migration to a more modern framework can happen automatically and with minimal manual inputs required. Engineering teams can instead focus on testing the newly created microservices to ensure the new and modified source code functions as well as and better than the monolith it replaces. In this context, implementing a fallback mechanism is crucial to enable safe rollbacks to the previous version if issues are detected with the new microservices.

4. Continuous Modernization Tools

Finally, it’s crucial to acknowledge the fact that microservices, unlike monoliths, are not static. Their distributed nature often means they run across multiple machines, which introduces unique management and debugging challenges. Instead, they are at their best when continually optimized and modernized to keep improving efficiency and productivity for the business.

That, in turn, means finding a tool that can help take an iterative approach to app modernization. It needs to account for release cycles and sprints, along with insights taken from ongoing architectural observability, that underlie the analysis of where modernization continues to be beneficial. During this process, it’s important to use tools that can synchronize data across services, ensuring data consistency and reducing downtime as you modernize.

Look for tools that offer self-service modernization options. The right tool can help you continually track your inefficiencies and architectural tech debt, which in turn creates a roadmap for where you can continue to improve. Connect it with your refactoring tool, and you get a modernization engine designed to keep optimization and efficiency at the forefront of all your software engineering and operations.

Database Decomposition: Breaking Up the Monolith’s Data Layer

One of the most challenging aspects of migrating from a monolithic system to microservices architecture is decomposing the data layer. In a monolithic application, the database is often a single, tightly coupled entity, making it challenging to perform application and database decomposition without risking data integrity. However, leveraging proven database decomposition patterns—such as the database wrapping service pattern—can help organizations break up the monolith’s data layer into smaller, service-aligned databases.

The database wrapping service pattern acts as an intermediary, allowing new microservices to interact with the existing monolithic database through a well-defined interface. This approach helps maintain both referential and transactional integrity during the migration, ensuring that data remains consistent and reliable across the entire system. As each microservice gradually takes ownership of its data, dependencies between services are reduced, and the risk of breaking referential or transactional integrity is minimized. Ultimately, database decomposition empowers each microservice to manage its data lifecycle, paving the way for a more resilient and scalable microservices architecture.

Pattern Spotlight: Strangler Fig Applications for Incremental Migration

Although multiple migration patterns can be helpful in the process, the Strangler Fig application pattern offers a proven method for incremental migration from a monolithic system to microservices architecture. Rather than attempting a risky, all-at-once migration, this pattern allows organizations to build new microservices alongside the existing monolithic system. Over time, new functionality is routed to the microservices, while legacy components are gradually retired. In short, the implementation generally looks like this:

  • Identify the legacy component to be replaced (e.g., service, module, or endpoint)
  • Isolate functionality using a facade, proxy, or API gateway
  • Implement new functionality alongside the legacy system
  • Gradually route traffic to the new implementation
  • Incrementally replace legacy features with modern equivalents
  • Remove legacy code once it’s fully deprecated and unused

This approach is especially valuable for legacy systems where a complete rewrite is impractical or too disruptive. By enabling incremental migration, the Strangler Fig pattern allows teams to maintain business as usual while steadily introducing new, modernized components. This reduces the risk of downtime and provides opportunities to test and validate new microservices in production before fully decommissioning the monolith. For organizations seeking a low-risk, flexible path to microservices architecture, the Strangler Fig pattern is an insightful migration pattern that supports continuous improvement and adaptation.

Managing Distributed Transactions: Sagas and Saga Rollbacks

As organizations adopt microservices architecture, managing distributed transactions across multiple services becomes a critical challenge. Traditional monolithic systems often rely on single, atomic transactions, but in a distributed environment, this approach is no longer feasible. The saga pattern provides a tested solution for coordinating distributed transactions, allowing each service to execute its part of a business process independently while maintaining overall consistency.

A saga is composed of a series of local transactions, each managed by a different microservice. If any step in the saga fails, saga rollbacks are triggered, executing compensating actions to undo the changes made by previous steps. This ensures that the system can recover gracefully from failures, maintaining data integrity without relying on complex distributed transactions. By implementing sagas and robust rollback mechanisms, organizations can build resilient, fault-tolerant microservice architectures that handle failures gracefully and keep business processes running smoothly across multiple services.

Security Considerations in Microservices Transformation

Security is paramount when transforming a monolithic system into a microservices architecture. Unlike monolithic applications, where security controls are often centralized, microservices require each service to implement its own security measures, including authentication, authorization, and secure communication protocols. This distributed approach introduces new challenges, such as managing credentials across multiple services and ensuring that data exchanged between services is encrypted and protected from unauthorized access.

Organizations must also address the unique risks associated with distributed systems, such as increased attack surfaces and the potential for lateral movement by malicious actors. Adopting security best practices—like using strong encryption, implementing service-to-service authentication, and regularly auditing access controls—helps safeguard sensitive data and maintain compliance. By prioritizing security throughout the migration process, organizations can ensure that their new microservices architecture is not only agile and scalable but also robust against evolving cyber threats.

How to Select the Right Tool to Transform a Monolith to Microservices

For each of the categories mentioned above, you will find multiple tools that claim to help you in the process. Selecting the right one, as a result, can be surprisingly challenging. A few tips can help:

  • Look for tools that prioritize refactoring over simpler alternatives like replatforming. It’s the only way to ensure that your outcome is a truly agile and future-focused software architecture.
  • Look for tools that can combine at least some of the functions above. A refactoring tool will be helpful on its own, but that helpfulness gets magnified when it also integrates with your architectural observability and continuous modernization engine.
  • Look for tools with an established track record. Case studies and references can help you understand whether the claims made on the website or in an exploratory call can be backed up with real-world successes. Tools that provide numerous illustrative examples are especially valuable, as they clarify complex migration processes and strategies.
  • Look for tools with intuitive user interfaces to ensure ease of use and adoption by your team.
  • Consider advanced tool capabilities, such as a mapping engine, support for database views and the database view pattern, handling split table scenarios, managing foreign key relationships, working with a shared database, supporting newly extracted service transitions, enabling change data capture, and facilitating message interception. These features are crucial for complex migrations and ensuring data integrity.
  • When evaluating risk and planning your migration, consider failure modes to ensure reliable process execution.
  • Be mindful of the sunk cost fallacy and avoid continuing with ineffective strategies simply because of prior investment.

Ultimately, the right tool can help you understand how to transform monoliths to microservices. Even better, a tool that matches all of the above criteria can significantly streamline the process, saving you time and resources while improving the outcome.

vFunction’s suite of tools, from our Architectural Observability Platform to the Code Copy feature and continuous optimization abilities, can help you get there. Request your demo today to learn how our platform can move your software out of legacy systems and into a modern, future-facing software architecture.

What is technical debt? Definition, examples & types

what is technical debt

When it comes to building software, technical debt is a significant challenge that can impede progress, limit innovation, and potentially derail projects. Like financial debt, technical debt refers to future costs. While sometimes necessary, technical debt can accumulate over time, creating a drag on development and leading to a host of problems down the line.

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In this blog, we’ll explain technical debt, explore its various forms, understand its causes and impact, and provide actionable insights to help you manage this inevitable aspect of software development. Whether you’re a developer, engineering manager, or executive, understanding technical debt is crucial to navigating the complexities of modern software projects and ensuring their long-term success.

What is technical debt?

The term “technical debt” was first coined by Ward Cunningham, a renowned software developer and one of the creators of the Agile Manifesto. He drew a parallel between taking shortcuts in software development and incurring monetary debt. Like financial debt, technical debt can provide short-term benefits (speedy delivery, reduced initial cost) but incurs interest in the form of increased complexity, reduced maintainability, and slower future changes.

At its most basic, technical debt can be defined as the cost of rework required to bring a software system to its ideal state. However, a more nuanced definition acknowledges that not all technical debt is equal. Some might be strategic and intentional debt, while others might be accidental or negligent. Is tech debt bad? Martin Fowler’s ‘Technical Debt Quadrant’ categorizes different types of technical debt based on intent and context. Some forms of tech debt, particularly those taken on recklessly or without a repayment plan, should be avoided at all costs.

tech debt quadrant
Tech Debt Quadrant Credit: Martin Fowler

Alternative terminology and usage

In tech circles, technical debt is sometimes referred to by other names, such as “code debt,” “design debt,” or even “cruft.” These terms generally refer to specific aspects of technical debt but share the core concept of accumulating problems due to past decisions.

Impact on software development and project timelines

Technical debt manifests in various ways, especially in legacy code. It might slow down feature development as developers navigate a tangled codebase. It could lead to more bugs and production issues due to fragile or poorly understood code. In extreme cases, technical debt can render a system unmaintainable, forcing a complete rewrite or system replacement. These impacts inevitably affect project timelines and can significantly increase costs in the long run.

Perspectives from industry experts and academics

Industry experts and academics have extensively studied and debated the concept of technical debt. Some, like Martin Fowler, emphasize distinguishing between intentional and unintentional debt. Others highlight the role of communication and transparency in managing technical debt. Regardless of their perspective, all agree that technical debt is unavoidable in software development and must be carefully managed.

Types of technical debt

Technical debt comes in different forms, each with unique characteristics and implications. Recognizing these types is crucial to effectively managing and addressing technical debt in your projects.

  • Architecture debt, often named as the most damaging type of tech debt, refers to compromises or suboptimal decisions made at a system’s architectural level. It might involve using outdated technologies, creating overly complex structures, or neglecting scalability concerns. Architectural debt can be particularly costly as it often requires significant refactoring or a complete system redesign.
ranking tech debt survey
1,000 respondents to a recent vFunction survey rank tech debt.
  • Code debt: This is perhaps the most common type of technical debt and encompasses many issues within the code. It might involve poorly written or convoluted code, lack of proper documentation, or insufficient testing. This can lead to increased maintenance efforts, a higher likelihood of bugs, and difficulty adding new features.
  • Design debt: This relates to shortcomings or inconsistencies in the design of the software. It might involve poor user interface design, inadequate error handling, or lack of modularity. Design debt can impact user experience, system reliability, and the ability to adapt to changing requirements.
  • Documentation debt: This refers to the lack of or outdated documentation for a software system. It can make it difficult for new developers to understand the codebase, increase onboarding time, and hinder maintenance efforts.
  • Infrastructure debt: This type of debt relates to the underlying infrastructure on which the software runs. It might involve outdated hardware, misconfigured servers, or neglected security updates. Infrastructure debt can lead to performance issues, security vulnerabilities, and downtime.
  • Test debt: This occurs when insufficient testing or outdated test suites are in place. It can lead to undetected bugs, regressions, and a lack of confidence in deploying new code.

Understanding the different types of technical debt helps identify and prioritize improvement areas. It also allows for more informed decision-making when weighing the short-term benefits of shortcuts against the long-term costs of accumulating debt.

Technical debt examples

Technical debt can manifest in numerous ways, often with far-reaching consequences. Let’s look at a few real-world examples:

The outdated framework

A company builds an application using a popular framework, such as .NET or the latest JDK (Java Development Kit). A few years later, the framework becomes outdated, and security vulnerabilities are discovered. However, updating the framework would require extensive code changes, leading to significant delays and costs. The company decides to postpone the update, accumulating technical debt in the form of a security risk.

The rushed release

Under pressure to meet a tight deadline, a software development team cut corners on testing and documentation. The product was released on time, but users quickly discovered bugs and usability issues. Fixing these problems becomes a constant drain on resources, hindering the development of new features.

The legacy system

A company inherits an extensive legacy system written in an outdated programming language. The system is critical to business operations but challenging to maintain and modify. Every change is risky and time-consuming. The company faces a dilemma: continue struggling with the legacy system or invest in a costly rewrite.

Short-term vs. long-term impacts

The examples above illustrate the trade-offs inherent in technical debt. In the short term, taking shortcuts or making compromises can lead to faster delivery or reduced costs. However, the long-term impacts can be severe.

As more debt piles up, it becomes a drag on your development efforts. Maintenance costs skyrocket, agility plummets, and the overall quality of your software suffers. Bugs become more frequent, performance issues crop up, and security vulnerabilities emerge. And let’s not forget the impact on your team. Developers can become frustrated and demotivated when constantly wrestling with a complex and fragile codebase.

Cost of technical debt

While technical debt might seem like a harmless trade-off in the short term, it can have a significant financial impact in the long run if there is no debt reduction strategy. Let’s break down some of the ways it affects your bottom line:

  • Development slowdown: As technical debt builds up, developers spend more and more time navigating complex code, fixing bugs, and working around limitations. This translates into longer development cycles, delayed releases, and missed market opportunities.
  • Increased maintenance costs: Maintaining and modifying a system burdened with technical debt requires more effort and resources. Refactoring, bug fixes, and workarounds contribute to higher maintenance costs, diverting resources from new development.
  • Opportunity cost: The time and resources spent dealing with technical debt could be invested in developing new features, improving user experience, or exploring new markets. Technical debt can stifle innovation and limit your ability to compete.

Technical bankruptcy: In extreme cases, technical debt can accumulate to the point where a system becomes unmaintainable. This can lead to a complete system rewrite, a costly and time-consuming endeavor that can disrupt business operations.

cost of tech debt
Professor Herb Krasner reported in 2022 the cost of technical debt to be $1.52T. Krasner now believes technical debt has climbed to $2T.

It’s essential to recognize that technical debt isn’t just a technical problem—it’s a business problem. The costs of technical debt can directly impact your company’s profitability and competitiveness, making managing technical debt a critical priority for many organizations.

What is technical debt in software development? 

Technical debt isn’t simply an unavoidable consequence of software development. It often arises from specific causes and contributing factors that, if understood, can be mitigated or even prevented.

Common causes and contributing factors

Let’s break down some of the most frequent offenders:

  • Pressure to deliver quickly: The demand for faster time-to-market can lead to shortcuts and compromises in the development process. Rushing to meet deadlines often results in code that’s less than ideal, tests that are skipped, and documentation that’s incomplete or non-existent.
  • Lack of precise requirements or shifting priorities: Ambiguous or constantly changing requirements can lead to rework and a system that struggles to adapt to evolving business needs.
  • Inadequate testing: Insufficient testing can allow bugs and vulnerabilities to slip through the cracks.
  • Lack of technical expertise or experience: Inexperienced developers might inadvertently introduce technical debt due to a lack of understanding of best practices or design patterns.
  • Outdated technologies or frameworks: Relying on obsolete technologies or frameworks can lead to maintenance challenges, compatibility issues, and security vulnerabilities. Legacy codebases are usually impacted by this type of debt.
  • Poor communication and collaboration: When software development teams don’t communicate effectively or collaborate efficiently, it can lead to misunderstandings, duplicated efforts, and inconsistent code.

Recognizing these causes empowers proactive debt management. Identifying risks early lets you take steps to minimize their impact and keep projects healthy.

How technical debt occurs during the software development lifecycle

Technical debt can creep into your project at any stage of the software development lifecycle. Let’s look at some common scenarios:

  • Requirements gathering: Ambiguous or incomplete requirements can lead to rework and code that doesn’t fully meet user needs, contributing to design and code debt.
  • Design phase: Rushing through the design phase or neglecting to consider scalability and maintainability can lead to architectural debt that becomes increasingly difficult to address later.
  • Development: Tight deadlines, lack of code reviews, and inadequate testing can result in tech debt in messy, buggy, and poorly documented code.
  • Testing: Insufficient testing or relying on manual testing can allow bugs to slip through.
  • Deployment: Rushing to deploy without proper planning and automation can lead to infrastructure debt, misconfigured servers, and potential downtime.
  • Maintenance: Neglecting to refactor and update code regularly can accumulate tech debt over time, making the system increasingly difficult and expensive to maintain.

It is crucial to recognize these potential pitfalls at each stage of the development lifecycle. Proactive measures like thorough requirements gathering, robust design practices, comprehensive automated testing, and regular refactoring help prevent technical debt from becoming unmanageable.

How vFunction can help

Managing and addressing technical debt can be daunting, but it’s essential for maintaining the long-term health and sustainability of your software systems. That’s where vFunction comes in.

manage techical debt with vfunction
vFunction helps customers measure, prioritize and remediate technical debt, especially the sources of architectural technical debt, such as dependencies, dead code, and aging frameworks.

vFunction’s platform is designed to help you tackle technical debt challenges in complex, monolithic applications and in modern, distributed applications. Our AI-powered solution analyzes your codebase and identifies areas of technical debt. This allows teams to communicate technical debt issues effectively and provide actionable insights to guide modernization efforts.

Here are some key ways vFunction can help you:

  • Assess technical debt: vFunction comprehensively assesses your technical debt, highlighting areas of high risk and complexity.
  • Prioritize refactoring efforts: vFunction helps you identify the most critical areas to refactor first, ensuring that your modernization efforts have the greatest impact.
  • Automate refactoring: vFunction automates many of the tedious and error-prone tasks involved in refactoring, saving you time and resources.
  • Reduce risk: vFunction’s approach minimizes the risk of introducing new bugs or regressions while modernizing legacy systems.
  • Accelerate modernization: vFunction enables you to modernize your legacy applications faster and more efficiently, unlocking the benefits of cloud-native architectures.

With vFunction, you can proactively manage technical debt, improve software quality, and accelerate innovation.

Conclusion

Technical debt is inevitable in software development, but it doesn’t have to be a burden. By understanding its causes and proactively managing its impact, you can ensure that technical debt doesn’t derail your projects or hinder your innovation.

Remember, technical debt is not just a technical issue; it’s a business issue. The costs associated with accumulated technical debt can significantly impact your company’s bottom line. Investing in strategies and tools to manage technical debt is an investment in your company’s future.

Solutions like vFunction can provide invaluable support in managing your tech debt load. By leveraging AI and automation, vFunction can help you assess, prioritize, and tackle technical debt efficiently, allowing you to focus on delivering value to your customers and achieving your business goals.

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Microservices architecture and design: A complete overview

microservices architecture design

Microservices continue to gain traction as the go-to architecture for cloud-based enterprise applications. Their appeal lies in scalability, flexibility, selective deployability, and alignment with cloud-native design. Often viewed as an evolution of service-oriented architecture (SOA), a microservices approach allows each service to be developed, tested, and deployed independently.

But the benefits aren’t automatic. To truly realize the promise of microservices, teams must follow sound design principles and architectural practices. This is especially true when breaking a monolith into microservices—a step often taken during cloud migration. Organizations expect the cloud to deliver agility, velocity, elasticity, and cost savings, yet those outcomes rarely materialize without a well-designed microservices architecture.

Let’s take a closer look at how microservices architecture works and what makes it effective.

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What is microservices architecture?

Microservices architecture, or simply microservices, comprises a set of focused, independent, autonomous services that make up a larger business application. The architecture provides a framework for independently writing, updating, and deploying services without disrupting the overall functionality of the application. Within this architecture, every single service within the microservices architecture is self-contained and implements a specific business function. For example, building an e-commerce application involves processing orders, updating customer details, and calculating net prices. The app will utilize various microservices, each designed to handle specific functions, working together to achieve the overall business objectives.

microservice architecture
Credit: Microsoft Azure, microservice architecture style.

To fully understand microservices, it’s helpful to contrast them with monolithic architecture.

Benefits of microservices

Adopting a microservices architecture brings a range of benefits that can transform how organizations build and operate software. One of the primary advantages is the ability to scale individual services independently, which helps optimize resource usage and eliminates bottlenecks that can affect the entire application. This independent scalability also means that development teams can deploy services independently, reducing the risk of system-wide outages and enabling continuous delivery of new features. Deployments can be performed with one service at a time or span multiple services, depending on the specific needs of the deployment.

Microservices architectures promote faster development cycles, as teams can focus on specific business functions without waiting for changes to the entire system. It also means that teams can choose their preferred programming language to build with, allowing different programming languages to be used across the application as a whole. This approach also enhances system resilience, as failures in one service are less likely to impact the entire system. By empowering teams to innovate and experiment with new features and technologies, microservices foster a culture of agility and continuous improvement, enabling organizations to respond quickly to evolving market demands.

Monolith vs. microservices architecture

Traditionally, software applications were built as monoliths (3-tier architectural style) – single units containing all business logic, which simplified deployment to on-premise infrastructure. As applications grew more complex, these monoliths became difficult to maintain, test, and scale effectively. The advent of cloud computing and containerization enabled a new approach: breaking applications into smaller, independent services. This microservices architecture allowed teams to develop, deploy, and scale components independently, fostering innovation and agility. Success stories from early adopters drove widespread industry adoption of microservices as the preferred architecture for modern cloud applications. Here is a brief overview of the critical differences between the monolithic and microservices architectures.

MonolithsMicroservices
StructureMonoliths bundle all functionality into a single executable.Microservices are a collection of independent, lightweight applications that work together.
DevelopmentMonoliths have a tightly coupled codebase, making changes risky and complex.Microservices are a set of independent codebases, allowing for easier updates and faster development cycles.
ComplexityMonoliths can become massive and complex to manage.Microservices decompose complexity into smaller, more manageable units.
ResilienceA single point of failure in a monolith can bring down the entire system.Microservices isolate faults, preventing system-wide outages.
ScalabilityMonoliths scale vertically by adding more resources to a single instance.Microservices scale both vertically and horizontally, allowing for more efficient resource utilization.
Team StructureMonolithic teams are often organized by technology (e.g., frontend team, backend team, database team).Microservice teams are organized around business capabilities, each owning a specific service.
DevelopmentDue to their complexity and risk, monoliths are typically deployed infrequently.Microservices leverage CI/CD for frequent and reliable deployments.
Technology choiceMonoliths have a single technology stack as they are deployed as a single runnable unit.Microservices support polyglot development allowing teams to choose the best technology stack for their specific service.

While monoliths can be suitable for smaller applications, microservices offer the agility, resilience, and scalability required for complex applications in dynamic environments. 

Key microservices architecture concepts

While every microservices architecture is unique, they share common characteristics that enable agility, scalability, and resilience. When you examine the concepts that encapsulate a microservices architecture, it resonates as a more modern approach to building and scaling applications. Let’s look at the core concepts in more detail below.

  • Cloud-native: Microservices are ideally suited for cloud environments. Their independent nature enables the efficient use of cloud resources, allowing for scalability on demand and cost-effectiveness through pay-as-you-go models. This avoids over-provisioning resources and paying for unused capacity, as would be the case with a monolithic application that requires more extensive, dedicated infrastructure.

    Additionally, this implies that microservices are inherently ephemeral, meaning they can be created and terminated easily without affecting the overall system. Therefore, they should be as stateless as possible, meaning each service instance should avoid storing information about user sessions or other temporary data. Instead, state information should typically be stored in caches and datastores that are external to the services themselves for easier independent scaling.
  • Organized around business capabilities: Teams are structured around business domains, owning the entire lifecycle of a service—from development and testing to deployment and maintenance. This fosters a sense of ownership and accountability, streamlines development by reducing dependencies between teams, and ultimately improves the quality of the service. This domain-focused approach aligns with Domain-Driven Design (DDD) principles, where the software’s structure reflects the business’s structure.
  • Automated deployment: Microservices rely heavily on automated CI/CD pipelines, enabling frequent and reliable deployments with minimal manual intervention. Automation accelerates the delivery of new features and updates, reduces the risk of errors, and enables faster feedback loops. With mature CI/CD pipelines, organizations can deploy changes multiple times daily, increasing agility and responsiveness to customer needs.
  • Intelligence at the endpoints: Microservices favor “smart endpoints and dumb pipes.” Intelligence resides within each service, enabling them to operate independently and communicate through simple protocols or lightweight message buses, such as Kafka. This promotes loose coupling, reduces reliance on centralized components, and allows for greater flexibility in technology choices and data management.
  • Decentralized control: Teams can select the best technologies and tools for their specific service. This encourages innovation and enables teams to optimize for performance, scalability, or other relevant factors. The freedom to choose the right tool for the job, known as polyglot programming, can lead to more efficient and effective solutions than a monolithic architecture, where a single technology stack is mandated.
  • Designed for failure: Microservices are designed with fault tolerance in mind, recognizing that failures are inevitable in complex systems. Observability is ensured through robust monitoring, logging, and automated recovery mechanisms, which promote resilience. By isolating failures and enabling quick recovery, microservices minimize disruptions and maintain the application’s overall health.

By embracing these concepts, organizations can leverage microservices to build highly scalable, resilient, and adaptable applications that thrive in dynamic environments.

What is microservices architecture used for?

Microservices have become an extremely popular architectural tool for building applications, offering several benefits, including faster development, deployment, and scalability. It’s important to note that many times adopting microservices architecture is an evolutionary process and very few large scale applications were born as microservices. Many times applications are lifted and shifted to the cloud as monoliths and only later are rearchitected and transformed into microservices that allow organizations to take advantage of advanced cloud services, like serverless computing.

Let’s consider some real-world use cases for a microservices architecture:

  • E-commerce platforms
    E-commerce platforms benefit from microservices by breaking down functionalities such as product catalogs, payment processing, order management, and user profiles into independent services. This allows teams to update specific features, like checkout or search, without affecting other parts of the application, resulting in faster deployments and more reliable scaling during high-traffic events, like holiday sales.
  • Streaming services
    On streaming platforms, microservices can independently handle various functionalities, such as video streaming, user recommendations, search, and user profiles. This enables personalized experiences by allowing the recommendation service to quickly update suggestions based on viewing history while the streaming service handles high data loads. It also improves fault isolation, ensuring that an issue with one component doesn’t disrupt the entire service.
  • Banking and financial applications
    Banks and financial institutions utilize microservices to separate services such as account management, transaction processing, customer support, and fraud detection. Microservices help ensure that critical services like transaction processing remain available and performant, while allowing other system components to evolve independently. This approach provides better security, compliance, and a faster time-to-market for new features.

Key technologies supporting microservices

Microservices adoption necessitates specific tools for effective management, orchestration, and scaling. The following key technologies, though not comprehensive, are crucial for deploying robust microservices architectures that enhance application agility and efficiency.

  • Containers (e.g., Docker): Containers package applications and their dependencies into isolated units, ensuring consistent runtime environments across different underlying virtual environments and simplifying deployment and management. This isolation benefits microservices, allowing independent development, testing, and deployment.
  • Orchestration platforms (e.g., Kubernetes): Kubernetes automates the deployment, scaling, and management of containerized applications. It handles tasks like load balancing, rolling updates, and self-healing, freeing developers to focus on application logic.
  • Service mesh (e.g., Istio): A service mesh enhances communication between microservices, providing features like traffic management, security, and observability. It acts as a dedicated infrastructure layer for inter-service communication, improving resilience and reducing development overhead.
  • Serverless computing (e.g., AWS Lambda): Serverless platforms abstract away infrastructure management, allowing developers to focus solely on code. This model can be highly cost-effective for microservices, as resources are consumed only when needed, and scaling infrastructure like this is seamless.
The case for migrating legacy java applications to the cloud
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When to use microservices

Despite their benefits, microservices aren’t always the universal solution, especially if a current monolith fulfills business requirements. Experts like Martin Fowler and Sam Newman recommend adopting microservices only when they address specific, unmet needs. 

Consider transitioning to a microservices architecture if you:

  • Aim for scalability, swift deployments, faster time-to-market, or enhanced resiliency.
  • Require the ability to deploy updates with minimal downtime, crucial for SaaS businesses, by updating only the affected services.
  • Handle sensitive information necessitating strict compliance with data protection standards (GDPR, SOC2, PCI), achievable through localized data handling within specific microservices.
  • Seek improved team dynamics, as microservices support the “two-pizza team” model, meaning teams no larger than those that can be fed by two pizzas, promoting better communication, coordination, and ownership.

Microservices and Java

Cloud-native applications, with their well-known benefits, have rapidly shifted the software development lifecycle to the cloud. Java, in particular, is well-suited for cloud-native development due to its extensive ecosystem of tools and frameworks, such as Spring Boot, Quarkus, Micronaut, Helidon, Eclipse Vert.x, GraalVM and OpenJDK. This section will delve into cloud-native Java applications.

A typical cloud-native Java application stack

Here is a simplified view of a Java cloud-native applications stack: Spring, Maven or Gradle, JUnit, Docker, and others. Although only one option is mentioned at each step, several alternatives exist:

Critical steps to decompose a monolithic app into microservices

Converting an existing monolithic application to a microservices architecture is called app modernization. While there are many ways of doing this, broadly, the process followed would be:

  1. Identify functional domains in the application. Group these domains into the minimum number of modules that need to be independently scalable. 
  2. Choose a module and refactor it to disentangle it from other modules such that it can be extracted out into an independently deployable unit. This refactoring should include the removal of method calls to classes and database table access in other modules. Additionally, refactor unnecessary dependencies and dead code out to have focused business logic necessary in it. 
  3. Extract this module out with its corresponding library dependencies into a new codebase from the monolith
  4.  Develop synchronous and asynchronous APIs for client interactions and create corresponding clients (e.g., in the User Interface, other modules, other applications, etc.) 
  5. Optionally, upgrade its technology stack to the latest libraries and frameworks as appropriate. 
  6. Compile, deploy, and test this module as a service in the target environment of choice.
  7. Repeat the last five steps until the monolith has been decomposed into a set of services.
  8. Split the monolithic database into databases/schemas per service
  9. Plan the transition to be iterative and incremental.
The easy way to transition from monolith to microservices
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Best practices in microservices development

We have seen that microservices architecture can provide several benefits. However, those benefits will only accrue if you follow good design and coding principles. Let’s take a look at some of these practices.

  • You should model your services on business features and not technology. Every service should only have a single responsibility.
  • Decentralize. Give teams the autonomy to design and build services.
  • Don’t share data. Data ownership is the responsibility of each microservice, and should not be shared across multiple services to avoid high latency.
  • Don’t share code. Avoid tight coupling between services to avoid inefficiencies in the cloud.
  • Services should have loose logical coupling but high functional cohesion. Functions likely to change together should be part of the same service.
  • Use a distributed message bus. There should be no chatty calls between microservices.
  • Use asynchronous communication to handle errors, isolate failures within a service, and prevent them from cascading into broader issues.
  • Determine the correct level of abstraction for each service. If too coarse, then you will not reap the benefits of microservices. If too fine, the resulting overabundance of services will lead to an operational nightmare. Practically, it is best to start with a coarse set of services and make them finer-grained based on scalability needs.

How big should a microservice be?

The size of a microservice, measured in lines of code, isn’t the main concern; instead, each microservice should manage a single business feature and be sized appropriately to fulfill this responsibility effectively.

This approach raises the question of defining what a business feature includes, which entails establishing service boundaries. Utilizing Domain-Driven Design (DDD), we define the ‘bounded context’ for each domain, a key concept in DDD that sets clear limits for business features and scopes individual services. With a well-defined bounded context, a microservice can be updated independently of others without interference.

Microservices design patterns

Microservices architecture is difficult to implement, even for experienced programmers. Using the following design patterns can reduce the complexity.

Ambassador

Developers use the Ambassador design pattern to handle common supporting tasks like logging, monitoring, and security.

Anti-corruption

This is an interface between legacy and modern applications. It ensures that the limitations of a legacy system do not hinder the optimum design of a new system.

Backends for front-ends

A microservices application can serve different front-ends (clients), such as mobile and web. This design pattern concerns itself with designing different backends to handle the conflicting requests coming from different clients.

Bulkhead

The bulkhead design pattern describes allocating critical system resources such as processor, memory, and thread pools to each service. Further, it isolates the assigned resources so that no entities monopolize them and starve other services.

Sidecar

A microservice may include some helper components that are not core to its business logic but help in coding, such as a specialized calendar class. The sidecar pattern specifies deploying these components in a separate container to enforce encapsulation.

The Strangler pattern

To transition from a monolith to microservices, follow these steps: First, develop a new service for the desired function. Next, configure the monolith to bypass the old code and call the new service. Then, ensure the new service operates correctly. Finally, eliminate the old code. The Strangler design pattern–based on the lifecycle of the strangler fig plant described by Martin Fowler in this 2004 blog post–helps implement this approach.

Microservices architecture patterns

We have seen some patterns that help in microservices design. Now let us look at some of the architectural best practices.

Dedicated datastore per service

It’s best not to use the same data store across microservices because this will result in a situation where different teams share database elements and data. Each service team should use its own database that is the best fit for it rather than sharing it to ensure performance at scale.

Don’t touch stable and mature code

If you need to change a microservice that is working well, it is preferable to create a new microservice, leaving the old one untouched. After testing the new service and making it bug-free, you can merge it into the existing service or replace it.

Version each microservice independently

Build each microservice separately by pulling in dependencies at the appropriate revision level. This makes it easy to add new features without breaking existing functionality.

Use containers to deploy

When you package microservices in containers, all you need is a single tool for deployment. It will know how to deploy the container. Additionally, containers provide a consistent runtime environment to microservices irrespective of the underlying hardware infrastructure they are deployed on.

Remember that services are ephemeral

Services are ephemeral, meaning they can be scaled up and down. Therefore, do not maintain stateful sessions or write to the local filesystem within a service. Instead, use caches and persistent datastores outside the container to hydrate a service with the required state. 

Other patterns

We have covered the simplest and most widely used patterns here. Other patterns are available, including Auto Scaling, Horizontal Scaling Compute, Queue-Centric Workflow, MapReduce, Database Sharding, Co-locate, Multisite Deployment, and many more.

strangler fig pattern

Gateway aggregation

This design pattern merges multiple requests to different microservices into a single request. This reduces traffic between clients and services.

Gateway offloading

The gateway offloading pattern deals with microservices offloading common tasks (such as authentication) to an API gateway. Clients call the API gateway instead of the service. This decouples the client from the service.

Gateway routing

Gateway routing enables several microservices to share the same endpoint, freeing the operations team from managing many unique endpoints.

Adapter pattern

The adapter pattern acts as a bridge between incompatible interfaces in different services. Developers implement an adapter class that joins two otherwise incompatible interfaces. For example, an adapter can ensure that all services provide the same monitoring interface. So, you need to use only one monitoring program. Another example is ensuring that all log files are written in the same format so that one logging application can read them.

Design of communications for microservices

To deliver a single business functionality, multiple microservices might collaborate by exchanging data through messages, preferably asynchronously, to enhance reliability in a distributed system. Communication should be quick, efficient, and fault-tolerant. We will explore issues related to microservices communication.

Synchronous vs. asynchronous messaging

Microservices can use two fundamental communication paradigms for exchanging messages: synchronous and asynchronous.

In synchronous communication, one service calls another service by invoking an API that the latter exposes. The API call uses a protocol such as HTTP or gRPC (Google Remote Procedure Call). The caller waits until a response is received. In programming terms, the API call blocks the calling thread.

In asynchronous communication, one service sends a message to another but does not wait for a response and is free to continue operations. Here, the calling thread is not blocked on the API call.

Both communication types have their pros and cons. Asynchronous messaging offers reduced coupling, isolation of a failing part, increased responsiveness, and better workflow management; however, if not set up with the understanding that system design will be different, you may experience disadvantages like increased latency, reduced throughput, and tighter coupling on a distributed message bus.

Distributed transactions

Distributed transactions with several operations are common in a microservices application. This kind of transaction involves several microservices, each executing some steps. In some cases, transactions are successful only if all the microservices correctly execute the steps they are responsible for; here, if even one microservice fails, the transaction fails. In other cases, such as in asynchronous systems, sequence is of lower consequence.

A failure could be transient. An example is a timeout failure due to resource starvation, which might result in long retry loops. A non-transient failure is more serious. In this case, an incomplete transaction results, and it may be necessary to roll back, or undo, the steps that have been executed so far. One way to do this is by using a Compensating Transaction.

compensation logic
Compensation logic used in booking travel itinerary.
Credit: Microsoft Azure.

Other challenges

An enterprise application may consist of multiple microservices, each potentially running hundreds of instances, which can fail for various reasons. To build resilience, developers should retry API calls.

For load balancing, Kubernetes uses a basic random algorithm. A service mesh can provide sophisticated load balancing based on metrics for more advanced needs.

When a transaction spans multiple microservices, each maintains its own logs and metrics. Correlating these in the event of a failure is achieved through distributed tracing.

Considerations for microservices API design

Many microservices “talk” directly to each other. All data exchanged between services happens via APIs or messages. So, well-designed APIs are necessary for the system to work efficiently.

Microservices apps support two types of APIs.

  • Microservices expose public APIs called from client applications. An interface called the API gateway handles this communication. The API gateway is responsible for load balancing, monitoring, routing, caching, and API metering.
  • Inter-service communication uses private (or backend) APIs.

Public APIs must be compatible with the client, so there may not be many options here. In this discussion, we focus on private APIs.

Based on the number of microservices in the application, inter-service communication can generate a lot of traffic. This will slow the system down. Hence, developers must consider factors such as serialization speed, payload size, and chattiness in API design.

Here are some of the backend API recommendations and design options with their advantages and disadvantages:

REST vs. RPC/gRPC:

REST is based on HTTP verbs and is well-defined semantically. It is stateless and, hence, freely scalable but does not always support the data-intensive needs of microservices. RPC/gRPC might lead to chatty API calls unless you design them correctly, yet this interface is potentially faster in many use cases than REST over HTTP.

Message formats

You can use a text-based message format, such as XML or JSON, or a binary format. Text-based formats are human-readable but verbose.

Response handling

Return appropriate HTTP Status Codes and helpful responses. Provide descriptive error messages.

Handle large data intelligently

Some requests may result in a large amount of data returned from the database query. Engineering teams may not need all the data; hence, processing power and bandwidth are wasted. Teams can solve this by passing a filter in the API query string, using pagination, compressing the response data, or streaming the data in chunks.

API versioning

APIs evolve. A well-thought-out versioning strategy helps prevent client services from breaking because of API changes.

Convert your monolithic applications to microservices

The benefits of a microservices architecture are substantial. If your aging monolithic application hinders your business, consider transitioning to microservices and taking advantage of the microservices infrastructure that public clouds offer.

However, adopting microservices involves effort. It requires careful consideration of design, architecture, technology, and communication. Tackling complex technical challenges manually is risky and generally advised against.

vFunction understands the constraints of costly, time-consuming, and risky manual app modernization. To counter this, vFunction’s AI-driven architectural modernization platform automates cloud-native modernization through a scalable factory model that leverages code assistants. It is the only platform that feeds architectural context based on runtime analysis into code assistants.

automate extractions
Once your team decomposes a monolith with vFunction, it’s easy to automate extraction to a modern platform.

Leveraging automation, GenAI, and data science, the platform enables smart transformation of complex Java monoliths into microservices. It stands as the unique and pioneering solution in the market.

Manage existing microservices

If you already have microservices, vFunction can help you manage complexity, prevent architectural drift, and enhance performance. With AI-driven architectural observability, vFunction provides real-time visibility into service interactions, revealing anti-patterns and bottlenecks that impact scalability. Its governance features set architectural guardrails, keeping microservices aligned with your goals. This enables faster development, improved reliability, and a streamlined approach to scaling microservices with confidence.

architectural governance
vFunction supports governance for distributed architectures, such as microservices, to help teams move fast while staying within the desired architecture framework.

To see how top companies use vFunction to manage their microservices, contact us. We’ll show you how easy it is to transform your legacy apps or complex microservices into streamlined, high-performing applications.

Learn more about using vFunction to manage your microservices
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How to manage technical debt in 2025

User browsing through vfunction site

For any software application that continually evolves and requires updates, accumulating at least some technical debt is inevitable. Unfortunately, similar to financial debt, its downsides can quickly become unsustainable for your business when tech debt is left unmanaged. Developers, architects, and others working directly on the code will quickly feel the impact of poorly managed technical debt.

Looking to get a handle on your current technical debt? Analyze and reduce it using vFunction.
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With its omnipresence, managing technical debt is a big problem for today’s companies. A 2022 McKinsey study found that technical debt amounts to up to 40 percent of their entire technology estate. Meanwhile, a 2024 survey of technology executives and practitioners found that for more than 50% of companies, technical debt accounts for greater than a quarter of their total IT budget, blocking otherwise viable innovations if not addressed.

It’s not a new issue, either. As a 2015 study by Carnegie Mellon University found, much of the technical debt currently present has been around for a decade or more. The study found architectural issues to be the most significant source of technical debt. A challenging problem to fix when many of the issues are rooted in decisions and code written many years prior. Effective and strategic ways to manage technical debt, specifically architectural debt, must be critical to your IT management processes.

ranking sources of technical debt
A Carnegie Mellon study found that architectural issues are the most significant source of technical debt.

As time passes, technical debt accumulates, spreading through the foundations of your technology architecture. After all, the most significant source of technical debt comes from bad architecture choices that, if left untreated, affect the viability of your most important software applications. In this blog, we look at how you can make 2025 the year you get a handle on your technical debt and overall technical debt management.

Understanding Technical Debt

Technical debt is a concept that draws a parallel between the shortcuts taken during software development and the idea of financial debt. When software developers cut corners, whether by writing quick solutions, skipping tests, or neglecting documentation, to meet delivery deadlines, they create a form of “debt” that must be repaid in the future. Just like financial debt, technical debt accrues “interest” over time, making future changes more difficult, time-consuming, and costly.

The causes of technical debt are varied. It can stem from poor code quality, rushed development cycles, lack of proper testing, or even the need to quickly adapt to changing business requirements. Sometimes, technical debt is the result of taking shortcuts to deliver features more quickly; at other times, it’s due to legacy systems or outdated technologies that are difficult to maintain. If left unmanaged, technical debt can slow down development teams, increase the risk of bugs, and make it harder to add new features or scale the software.

By understanding what technical debt is and how it accumulates, development teams can take effective steps to manage it. This means not only addressing existing debt but also making conscious decisions to avoid unnecessary shortcuts in the future, ensuring that unintended technical debt remains at minimal levels.

Managing technical debt at the architectural level

Not all technical debt is created equal. Using the broad term alone can be surprisingly misleading, as not all technical debt is inherently bad. Due to deadlines and the implementation needs of any software build, some debt is inevitable or can be a valid trade-off for getting good software in place on time. Perfection, after all, can be the enemy of good.

technical debt trade-offs
Some debt can be a valid trade-off to getting good software in place on time.

The problem becomes significant when technical debt is unintentionally introduced or built into the software’s architecture. Technical debt that goes unmanaged can become legacy technical debt, remaining at the core of your IT infrastructure for years. Over time, the debt begins to cause architectural drift, where the application architecture’s current state moves away from the target state, continuing to harm your overall infrastructure.

Is all technical debt bad?
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At the architectural level, managing technical debt becomes essential. Other types of debt, such as code quality issues, bugs, performance problems, and software composition issues, can be addressed. However, when the debt is built into the software architecture, it becomes a deep-seated issue challenging to solve or manage without significant investment and time.

The core problem is that architectural debt tends to be more abstract. Its design isn’t based on a few lines of code that can be fixed, but is layered into the architecture. These issues are often caused by shortcuts, prioritizing convenience, and concerns around speed to market during the initial build; their unintentional nature can cause significant liabilities that fester for the longer term.

Five steps to manage architectural technical debt in 2025

Fortunately, difficulty in managing technical debt at the architectural level does not mean the process is impossible. It just means taking a more intentional and strategic approach to an issue that likely has been spreading quietly in your software architecture.

That process takes time, effort, and organization-wide buy-in. However, with the right approach and steps, any technical leader can achieve it. Let’s examine five critical steps in managing architectural technical debt in 2025.

1. Make technical debt a business priority

As devastating as architectural debt can be, an unfortunate truth remains. The above-mentioned Carnegie Mellon University study found that most management is mainly unaware of the dangers of technical debt or the value of finding more effective ways to manage it. That, in turn, makes building buy-in on any effort to address technical debt a necessary first step.

As a recent article by CIO points out, that process has to begin with treating architectural debt as the danger it is for your business. The article cites Enoche Andrade, a digital application innovation specialist at Microsoft, who emphasizes the need for all executives to be aware of the issue:

“CIOs have a critical responsibility to raise awareness about technical debt among the board and leadership teams. To foster a culture of awareness and accountability around technical debt, companies should encourage cross-functional teams and establish shared goals and metrics that encourage all groups to work together toward addressing technical debt and fostering innovation. This can include creating a safe environment for developers to experiment with new approaches and technologies, leading to innovation and continuous improvement.”

Enoche Andrade, Digital Application Innovation Specialist at Microsoft

But in reality, that process begins even earlier. In many cases, simply citing the potential costs and risks of existing debt and failure to manage that debt can perk up ears. 

A recent report by Gartner emphasizes just how important incorporating architectural technical debt (ATD) as a strategic priority can become for your organization. It’s a crucial first step to ensure that any actions taken and resources invested have the full support of the entire enterprise.

2. Systematically understand and measure technical debt

Although getting buy-in is a challenge, you must rely on a solid foundation to understand your architectural debt to be effective in getting buy-in and remedying technical debt issues. This is a critical component of a comprehensive technical debt management strategy. Understanding and analyzing its scope as it relates to your software architecture has to be among the earliest steps you take.

Unlike identifying code-level technical debt, this step is more complicated for architectural technical debt. Since it is far from straightforward, this type of debt is often difficult to reconcile. This is especially true considering that, depending on your operation and industry, your architecture may look very different from the many case studies you find online, making it difficult to follow a simple template.

 

The key, instead, is to prioritize and systematize architectural observability—to understand and analyze your digital architecture at its most fundamental level. Insights into architectural drift and other issues can lead to incremental plans designed to improve the software at its most fundamental level.

The more you can build architectural observability into your regular quality assurance process, the easier it will be to find hidden dangers in the architecture that underpins your apps.

3. Prioritize your fixes strategically

With a solid understanding of your architectural debt, it’s time to begin building a strategy to manage that technical debt. As with many IT problem-solving processes, the two key variables are the potential impact of the issue and the time it would take to fix it:

  • The higher the potential negative impact of the architectural debt on your software, the more urgent it becomes to fix it comprehensively.
  • The easier an architectural debt issue is to fix, the faster you can begin eliminating or mitigating its potential harm to your software architecture.

Building the correct priority list to reduce technical debt is as much art as science. At worst, you might have to rebuild and modernize your entire software architecture. The right architectural observability tools can help you build that priority list based on your findings, providing a more precise roadmap to solve the issues at their root.

vfunction to-dos
Example of a prioritized list of to-dos based on vFunction’s AI-driven analysis.

4. Be intentional about any new technical debt

As mentioned above, some technical debt is intentional due to trade-offs your development team is willing to make. Architectural debt, however, should not generally fall into this category. The negative impact of its deep roots is too significant for any speed or convenience trade-off to be worth it in the long term.

Architectural Technical Debt and Its Role in the Enterprise
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The key is being intentional about any technical debt you take on. As Mike Huthwaite, CIO of Hartman Executive Advisors, points out in the CIO article,

“Intentional technical debt has its place and has its value; unintentional technical debt is a greater problem. When we don’t track all the technical debt, then you can find you’re on the brink of bankruptcy.”

That, in turn, means educating your entire team on the dangers of technical debt and becoming more intentional about understanding its potential occurrences and implications. At its best, this means limiting its use where possible and avoiding the more abstract and deep-rooted architectural debt altogether.

5. Establish a roadmap to manage technical debt over time systematically

Finally, any effort to manage technical debt on the architectural level has to be ongoing. Simply analyzing your software once and running through the priority list from there is not enough as you look to optimize your software infrastructure and minimize the potential fallout of architectural debt over time. Every time additions and updates happen within an application, architectural drift and unintentional technical debt can occur.

Instead, plan to build the debt management process into your ongoing development workflow. Incorporating routine maintenance as a proactive, scheduled activity is essential for preventing larger technical debt issues before they arise. Continue to analyze the debt via architectural observability, prioritizing where you can pay it down, perform the actual work, and repeat the process. At its best, it becomes a cycle of continuous improvement, each turn improving your architecture over time.

Managing technical debt with AI

With the latest wave of AI coding tools, technical debt management has become even easier. Previously, when technical debt was identified, you’d need to go through an extensive assessment, planning, and find time within the developers’ schedule to work on the issues. Now, by creating detailed prompts that outline the issues and preferred remediation, if known, and utilizing the latest iterations of AI coding tools, such as Cursor and Windsurf, teams can enable AI to perform high-complexity refactoring of technical debt.

With these AI tools, workflows can go from technical debt identification to remediation in potentially a matter of minutes. Some of this can even be done in an automated fashion with tools like Devin and Tembo, where Jira and Linear tickets with tech debt tasks are automatically picked up, fixed, and pull requests are automatically raised for review and testing by developers before being pushed into production. This is where tools like vFunction can help the team identify these issues, allowing them to be addressed by the AI tools.

vFunction and architectural observability: The key to architectural technical debt management in 2025

Managing architectural tech debt is a complex process, but it doesn’t need to be impossible. Much of that complexity can be managed through a strategic investment in architectural observability. Knowing how to manage technical debt effectively will empower your organization to maintain a healthy and efficient IT infrastructure. Once you can identify technical debt and prioritize where to begin minimizing it, taking action becomes much more straightforward and can be performed continuously. A robust technical debt management strategy will ensure your architectural improvements are sustainable and constantly optimized. To get there, the right software is critical. vFunction can help with a platform designed to analyze, prioritize, and pay down your architectural debt over time.

vfunction platform determine application complexity
vFunction analyzes applications and then determines the level of effort to rearchitect them.

When it comes to using vFunction to discover and manage technical debt, architectural observability can bring a few key advantages. These include:

  • Engineering velocity: vFunction dramatically speeds up the process of improving an application’s architecture and application modernization, such as moving monoliths to microservices, if that’s your desired goal. This increased engineering velocity translates into faster time-to-market for products and features and a modernized application.
  • Increased scalability: By helping architects view and observe their existing architecture as the application grows, application scalability becomes much easier to manage. Scaling is more manageable by seeing the application’s landscape and helping improve each component’s modularity and efficiency.
  • Improved application resiliency: vFunction’s comprehensive analysis and intelligent recommendations increase your application resiliency and architecture. By seeing how each component is built and interacts with each other, teams can make informed decisions favoring resilience and availability.

Using vFunction, you can establish a current picture of your application’s architecture, understand areas of existing technical debt, and continuously observe changes as the application evolves.

Conclusion

Software development is rarely a linear process, and because of this, introducing technical debt is part of the normal development cycle. Avoiding technical debt is almost impossible, so it is critical to track technical debt and reduce it when it is not intentional. Managing technical debt is a fact of life for developers, architects, and other technical members of a project’s development team, and getting the right tools in place to observe and remedy it when needed is essential.

When it comes to understanding and monitoring technical debt at the most crucial level, within the applications architecture, vFunction’s architectural observability platform is an essential tool. Contact our team to understand more about how vFunction can help your team with technical debt reduction and manage it moving forward.

Mind the gap: Exploring software architecture in the UK

After spending time on the ground in the U.K. for vFunction’s recent application modernization workshops with AWS and Steamhaus, I was struck by how smoothly things run. The Tube was fast and reliable. The flat, walkable streets—and the refreshing mix of people—were a welcome break from San Francisco’s hills and familiar routines. And the Eurostar? A game-changer. International travel that felt as easy as a BART ride across the Bay.

In that spirit of cultural comparison and exploration, we wanted to take a closer look at how engineering teams in the U.K. are approaching software architecture, especially in contrast to their peers in the U.S. To explore that shift, we pulled U.K.-specific insights from our 2025 Architecture in Software Development Report, which surveyed 629 senior technology leaders and practitioners across the U.S. and U.K. The U.K. edition reflects 314 respondents across industries including software and hardware, financial services, manufacturing, and others, from CTOs and heads of engineering to architects and platform leads.

While both regions are navigating the same wave of AI acceleration, their strategies reveal meaningful differences. As AI reshapes how software is built, shipped, and scaled, well-managed architecture is more important than ever for application resilience and innovation. Without continuous oversight, architectural complexity can quietly erode stability, delay delivery, and heighten risk, a reality many U.K. teams are now confronting. It’s a critical time to focus not just on architectural outcomes, but on the processes and tools that uphold them through rapid change.

What stood out? Three differences between the UK and the US

A revealing picture emerged where U.K. organizations are advancing and where they’re struggling. Here are three key differences between the U.K. and the U.S.

1. Greater operational challenges in the U.K.

Despite the striking efficiency of systems in cities like London—from public transport to international rail—many U.K. organizations are hitting bumps in the road when it comes to their software. Managing software becomes especially difficult when the underlying architecture isn’t stable. Without a sound architectural backbone, teams struggle to deliver consistent value, meet customer expectations, and scale effectively.

Software stability remains elusive for many U.K. companies. A vast majority—95%—report some form of operational difficulty tied to architectural issues. Compared to their U.S. counterparts, U.K. organizations face significantly higher rates of service disruptions, project delays, rising operational costs, and application scalability challenges. They also report more security and compliance issues (54% vs. 46%), which may further compound instability and risk.

While no region is immune, the data suggests U.K. teams are grappling with more entrenched and complex software challenges, often the downstream effects of architectural drift.

2. Higher OpenTelemetry adoption

While U.K. organizations face steeper software challenges, the data also shows they’re taking steps to confront them head-on. One key example: higher adoption of OpenTelemetry, the open standard for collecting telemetry data across distributed systems. OTel has been implemented in full or in part by 64% of U.K. respondents, compared to 54% in the U.S.

That puts U.K. teams in a stronger position to move beyond basic performance monitoring and toward real-time architectural insight, especially when paired with a platform like vFunction. With the ability to visualize service flows, detect architectural drift, and understand how systems evolve over time, these teams are laying the groundwork for greater visibility and control. A growing focus on advanced observability is becoming a critical foundation for both operational recovery and long-term resilience.

3. Architecture integration in the SDLC improves with scale in the U.K.

Despite persistent challenges, larger U.K. organizations report greater architecture integration across the software development lifecycle than smaller firms, an encouraging contrast to the U.S., where smaller companies tend to show stronger alignment than their larger peers.

This suggests that while U.K. enterprises may be grappling with deeper architectural complexity, they’re also taking more deliberate steps to embed architecture throughout development as they scale. In many cases, integration isn’t just a function of growth—it’s a necessary response to it.

While U.K. teams may be experiencing the impact of architectural challenges more acutely, they’re also laying the groundwork for more sustainable, architecture-led software practices.

And there’s more. Get the full report.

Want to know which industries are leading—or where the biggest risks still lie?

The full U.K. report dives deeper into how documentation, SDLC integration, and observability intersect across software, financial services, and manufacturing. It also explores how leadership and practitioners perceive architecture differently, and how AI is reshaping complexity—along with what U.K. teams are doing to stay ahead.

📥 Download the U.K. edition of the 2025 Architecture in Software Development Report.
And see how your architecture strategy compares.

Enterprise software architecture patterns: The complete guide

When assessing software, we often consider whether it is “enterprise-ready,” evaluating its scalability, resilience, and reliability. Achieving these criteria requires consideration of best practices and standards, centered around technology and architecture.

Enterprise software architecture is the backbone of digital transformation and business agility, providing proven structural frameworks for building scalable and resilient applications. Rooted in industry experience, these patterns offer standard solutions to common challenges. This guide explores essential enterprise architecture patterns, their pros and cons, and practical advice for selecting the right option. Understanding these patterns is key to creating high-quality software that is fit for enterprise use.

What are enterprise architecture patterns?

Enterprise architecture patterns are standardized, reusable solutions for common structural issues in organizational software development. While smaller-scale design patterns target specific coding problems, enterprise architecture patterns tackle broader, system-wide concerns such as component interaction, data flow, and scalability for enterprise demands. 

These conceptual templates provide guidance to developers and architects in structuring applications to meet complex business requirements while maintaining flexibility for future growth. Just as building architects use established designs, software architects use these patterns to make sure their applications can withstand changing business needs. Enterprise architecture patterns typically address:

  • System modularity and organization
  • Component coupling and cohesion
  • Scalability and performance
  • Maintainability and testability
  • Security and compliance
  • Integration with other enterprise systems

Why architecture patterns matter in enterprise software

System design and implementation often present various problems, and there are usually multiple solutions to choose from. This abundance of options can be overwhelming. Architecture patterns are important because they provide architects and developers with a strategic advantage by helping them understand various approaches. Following these patterns offers several benefits across different areas. Here’s why knowing and applying enterprise architecture patterns is crucial: 

Reduced technical risk: Well-established patterns have been battle-tested across multiple implementations, reducing the likelihood of structural failures in critical business systems. This proven track record gives stakeholders confidence in the system.

Faster development: Patterns provide ready-made solutions to common architectural problems, so development teams can focus on business-specific requirements rather than solving fundamental structural problems from scratch. This can speed up development cycles.

Better communication: Patterns create a shared vocabulary among development teams, so it’s easier to discuss and document system design. When an architect says “microservices” or “event-driven architecture”, the whole team knows what they mean.

Easier maintenance: Following established patterns results in more predictable, structured codebases that new team members can easily understand and modify. This reduces the learning curve and keeps development velocity even as team composition changes.

Future proofing: Well-chosen patterns provide flexibility for growth and change, so systems can adapt to changing business requirements without requiring complete rewrites. This is especially important in today’s fast-paced business world.

Cost efficiency: By preventing architectural mistakes early in the development process, patterns avoid costly rework and refactoring later. According to industry studies, architectural errors found in production can cost up to 100 times more to fix than those found during design.

With the rapid digital transformation in various industries, the significance of architecture patterns in enterprise software increases. So, what are some common enterprise architecture patterns? You may be familiar with many of the ones we will discuss below. Let’s delve in.

Common enterprise architecture patterns

Here are some common types of enterprise software architectures. 

Layered architecture

The layered architecture pattern, also known as n-tier architecture, organizes components into horizontal layers, each performing a specific role in the application. Typically, these include presentation, business logic, and data access layers.

Simple diagram of a layered architecture

The key attributes of this architecture are:

  • Components only communicate with adjacent layers
  • Higher layers rely on lower layers, not the other way around 
  • Each layer has a distinct responsibility

This pattern is commonly suited for traditional enterprise applications, particularly those with intricate business rules but straightforward scalability needs. For example, a banking system might have a web interface layer, a business rules layer for transaction processing, and a data access layer for talking to the core banking database.

Microservices architecture

In recent years, the popularity of this pattern has surged because of its numerous advantages.  Microservices break down applications into small, independent services that can be developed, deployed, and scaled individually. Each service focuses on a specific business capability and talks to other services through well-defined APIs.

Diagram of a simple microservices architecture

The key attributes of this pattern include:

  • Services are loosely coupled and independently deployable
  • Each service owns its data storage and business logic
  • Services communicate via lightweight protocols (often REST or messaging)
  • Enables polyglot programming and storage

Although it brings many advantages, taking a microservices approach and managing it successfully requires a mature DevOps culture, strong observability tools (monitoring, logging, tracing), and careful data consistency strategies to manage the increased complexity and ensure resilience. The distributed nature of microservices introduces challenges in transaction management, service discovery, and failure handling that must be explicitly addressed.

Microservices architectures are ideal for large applications with many different functionalities that benefit from independent scaling and deployment of components. An e-commerce platform is a good example of using microservices. When divided into microservices, this type of system would have separate microservices to manage functionalities for user profiles, product catalog, order processing, and recommendations. Since each is managed separately, different teams can maintain each microservice if desired.

Event-driven architecture

Many modern enterprise applications, especially those dependent on real-time actions, depend on event-driven architectures. Event-driven architecture revolves around the production, detection, and consumption of events. Components communicate by generating and responding to events rather than through direct calls. Much of the time, the underlying services that handle the events leverage the last pattern we chatted about: microservices.

Example diagram of an event-driven architecture

The key attributes  of this pattern include:

  • Loose coupling between event producers and consumers
  • Asynchronous communication model
  • Can use event mediators (event brokers) or direct publish-subscribe mechanisms
  • Naturally accommodates real-time processing

As mentioned, this pattern is really well suited for systems requiring real-time data processing, complex event processing, or reactive behavior. For example, a stock trading platform might use events to notify various system components about price changes, allowing each component to react appropriately without tight coupling.

Service-oriented architecture (SOA)

Although a bit dated and not as popular as it once was, service-oriented architectures are still commonly used, especially in the .NET and Java realms. SOA structures applications around business-aligned services that are accessible over a network through standard protocols. It emphasizes service reusability and composition. Like microservices, the services in SOA are not as detailed as those in a typical microservices architecture. 

Diagram of a sample SOA architecture

The key attributes of this pattern include:

  • Services expose well-defined interfaces
  • Services can be composed to create higher-level functionality
  • Often includes a service bus for mediation and orchestration
  • Typically more coarse-grained than microservices

Over the years, SOA  has morphed from traditional SOA to a more modern approach. Traditional SOA uses an Enterprise Service Bus (ESB); modern SOA overlaps with microservices but retains the traditional SOA’s principles of service reuse and contract standardization. Modern SOA is lightweight, service-to-service communication, unlike a central bus that is typically used in a traditional architecture.

Regardless of the approach, this pattern can work well for enterprises with multiple applications that can share services and standardized integration. For example, an insurance company might expose claim processing, policy management, and customer information as services that can be reused across multiple applications.

Domain-driven design (DDD)

DDD itself is not an architectural pattern, but it guides architectural decisions by highlighting domain boundaries and the importance of business logic. It frequently influences patterns like microservices or modular monoliths.

A diagram showing how different contexts work with a DDD architecture

The key attributes of DDD that make it applicable in this context include: 

  • Bounded contexts with clear boundaries
  • Aligns software models with business domain models
  • Uses ubiquitous language shared by developers and domain experts
  • Separates core domain logic from supporting functionality

This approach works well for complex business domains where model clarity and business rules are key. For example, a healthcare system might have separate models for patient records, billing, and medical procedures. Using DDD to design and implement such a system would be well-suited.

Hexagonal architecture (ports and adapters)

Sometimes, older patterns are bundled together with more modern ones. One such pattern is the hexagonal architecture, which separates the core application logic from external concerns by defining ports (interfaces) and adapters that implement those interfaces for specific technologies. This is often used in conjunction with microservices.

Example of how hexagonal architectures work. Original courtesy of Netflix Tech Blog 

The key attributes  of the hexagonal architecture pattern include:

  • Business logic has no direct dependencies on external systems
  • External systems interact with the core through adapters
  • Facilitates testability by allowing external dependencies to be mocked
  • Supports technology evolution without impacting core functionality

Using this pattern is typically helpful for systems that need to integrate with multiple external systems or where technology choices may evolve over time. For example, a payment processing system might define ports for different payment providers. Following this pattern would allow new providers to be added without changing the core payment logic.

CQRS (Command Query Responsibility Segregation)

CQRS (Command Query Responsibility Segregation) has been widely used since it was introduced by Greg Young in 2009. It separates read and write operations into separate models for independent optimization. It is commonly paired with Event Sourcing in an event-driven architecture. 

Simple diagram of how the CQRS pattern works

The key attributes of this pattern include:

  • Separate models for reading and updating data
  • Can use different data stores optimized for each purpose
  • Often paired with event sourcing for audit trails and temporal queries
  • May involve eventual consistency between read and write models

The pattern itself offers some good flexibility when implemented. CQRS can be simplified by using the same database with different models instead of separate data stores. This approach is more straightforward for systems that don’t need full auditability or extreme performance optimization. It offers a range of implementation options, from logical separation to complete physical separation.

Systems with intricate domain models, high read-to-write ratios, or collaborative domains prone to conflicts are best suited for this pattern. For instance, an analytics platform could benefit from a customized read model for complex queries alongside a basic write model for data input.

Software architecture patterns vs. design patterns

While related, software architecture patterns and design patterns address different levels of abstraction in software development. Understanding the distinction helps development teams apply each of them appropriately.

Architecture patterns

Architecture patterns operate at the highest level of abstraction, defining the overall structure of an application or system. They determine how:

  • The system is divided into major components
  • These components interact and communicate
  • The system addresses qualities like scalability, availability, and security

Architecture patterns affect the entire application and typically require significant effort to change once implemented. They’re usually chosen early in the development process based on business requirements and quality attributes.

Design patterns

Design patterns, popularized by the “Gang of Four,” operate at a more detailed level, addressing common design problems within components. They provide:

  • Solutions to recurring design challenges in object-oriented programming
  • Best practices for implementing specific functionality
  • Guidelines for creating flexible, maintainable code

Unlike architecture patterns, design patterns apply to specific parts of the system and can be implemented or changed without affecting the overall architecture. Examples include Factory, Observer, and Strategy patterns.

The complementary relationship 

Architecture and design patterns complement each other when building enterprise systems. Here’s how:

  • Architecture patterns establish the overall structure
  • Design patterns help implement the details within that structure
  • Multiple design patterns can be used within a single architecture pattern
  • Some patterns (like model-view-controller) can function at both levels, depending on the scope

When developers understand both types of patterns, architecture, and design, and how they interrelate, they can create well-structured systems at both macro and micro levels.

Comparative analysis of enterprise architecture patterns

Digging back into the particulars of the enterprise architecture patterns we covered above, understanding the benefits and challenges of each helps to choose which to apply and when. To do this, selecting the correct architecture pattern requires understanding each pattern’s trade-offs. Let’s compare the major enterprise architecture patterns across several dimensions:

PatternScalabilityFlexibilityComplexityDeployment
LayeredModerateLowLowMonolithic
MicroservicesHighHighHighIndependent services
Event-DrivenHighHighHighVaries
SOAModerateModerateModerateService-based
HexagonalModerateHighModerateVaries
CQRSHighModerateHighSeparate read/write

Performance considerations

Between the different patterns, performance varies greatly.

Layered Architecture: Can introduce performance overhead due to data passing between layers. Vertical scaling is typical.

Microservices: Enables targeted scaling of high-demand services but introduces network latency between services. Distributed transactions can be challenging.

Event-Driven Architecture: Excels at handling high throughput with asynchronous processing but may face eventual consistency challenges.

SOA: The Service bus can become a bottleneck under high load. More coarse-grained than microservices, potentially limiting scaling options.

Hexagonal Architecture: Performance depends on implementation details and adapter efficiency, but generally supports optimization without affecting core logic.

CQRS: Can dramatically improve read performance by optimizing read models, though synchronization between models adds complexity.

Maintenance and evolution

Similar to performance, Long-term maintainability varies by pattern:

Layered Architecture: Easy to understand, but can become rigid over time. Changes often affect multiple layers.

Microservices: Easier to maintain individual services, but requires advanced operational infrastructure. Service boundaries may need to evolve over time.

Event-Driven Architecture: Flexible for adding new consumers, but event schema changes can be hard to propagate.

SOA: Service contracts provide stability but can become outdated. Service versioning is key.

Hexagonal Architecture: Highly adaptable to changing external technologies while keeping core business logic.

CQRS: Separate read and write models allow independent evolution, though synchronization logic requires careful management.

In reality, many enterprise applications use hybrid architectures, combining elements of different patterns to address specific needs. For example, a system might use microservices overall, but CQRS within specific services or event-driven principles are used for integration, while using a layered architecture within components.

How to choose the right architecture pattern for enterprise

Selecting the appropriate architectural pattern is a crucial decision that significantly influences the future of your application. It is essential to thoroughly consider and carefully select the architectural pattern that best suits your use case. Follow the steps below to ensure that all aspects are thoroughly assessed and that the chosen pattern aligns with the application’s requirements.

1. Identify key requirements and constraints

Start by clearly defining what your system needs to do. This includes looking at factors such as:

  • Functional requirements: The core capabilities the system must provide
  • Quality attributes: Non-functional requirements like performance, scalability, and security
  • Business constraints: Budget, timeline, and existing technology investments
  • Organizational factors: Team size, expertise, and structure

The insights from this assessment usually help to quickly narrow things down. However,  it’s important to remember that no architecture can optimize for all of these qualities at the same time.

2. Assess your domain complexity

Next, consider the nature of your business domain, as it will also influence your choice of architecture.  Simple domains with well-known, stable requirements might benefit from simple layered architectures, while complex domains with evolving business rules often benefit from Domain-Driven Design, potentially combined with microservices. Data-intensive applications might use CQRS to separate reading and writing. Integration-heavy scenarios usually require service-oriented or event-driven approaches. Having a good understanding of the domain complexity will give further insights into what architecture patterns will and won’t work well for the system at hand.

3. Consider organizational structure

Conway’s Law says systems tend to reflect the communication structures of the organizations that design them. Large teams with specialized skills can work well with microservices, each owned by a cross-functional team. Small teams might struggle with the operational complexity of highly distributed architectures. Geographically distributed teams might benefit from clearly defined service boundaries and interfaces. Organizational structure can definitely make certain patterns easier to implement and to maintain in the long term.

4. Evaluate the technology ecosystem

Unless you are starting a project entirely from scratch, certain technologies will likely already be ingrained within your engineering organization. Therefore, both existing and planned technology investments should play a role in shaping your architectural decisions. For example, legacy system integration requirements might favor SOA or hexagonal architecture, cloud-native development often aligns well with microservices and containerization, and real-time processing needs point toward event-driven architectures. More than anything else on this list, the technology ecosystem you’re playing within can be one of the largest factors in dictating which patterns are feasible.

5. Plan for growth and change

While current requirements are crucial, it is equally important to consider the future needs of the system. Ensure that the selected patterns can support future functionalities. Changing the underlying architecture of an application is a complex process, so it is essential to carefully consider the following before making a final decision :

  • Scale: Will you need to support 10x or 100x growth in users or transactions?
  • Agility: How often do you expect major feature additions or changes?
  • Regulatory landscape: Are compliance requirements going to change significantly?

With these and other potential factors in mind, you can then test your patterns of choice to make sure that they can support the future needs of your business without a massive overhaul.

6. Leverage architectural observability with vFunction

For enterprises with existing applications, the journey from the current architecture to the target state requires an understanding of the current state. This is where architectural observability through vFunction comes in.

vFunction helps architects and developers understand the patterns used within their applications

vFunction helps organizations modernize existing applications by providing AI-powered analysis and modernization capabilities. The platform helps with:

Architectural discovery: vFunction analyzes application structure and dependencies, creating a comprehensive map of your current architecture that serves as a foundation for modernization planning.

Service identification: The platform identifies service boundaries within monoliths, so architects can determine the best decomposition into microservices or other modern architectural components.

Refactoring automation: vFunction provides specific guidance and automation for extracting and refactoring code to match your target architecture pattern, reducing the risk and effort of modernization.

For example, Turo used vFunction to enable the car-sharing marketplace to speed up its monolith to microservices journey, improve developer velocity, and prepare its platform for 10x scale. By providing architectural observability, vFunction bridges the gap between architectural vision and reality, making modernization projects more predictable and successful.

7. Implement incrementally

Lastly, once you’ve chosen a pattern, consider an incremental implementation. Compared to a big-bang implementation, where everything is deployed immediately, rolling things out incrementally is a better option that is less risky. Of course, this depends on your chosen architecture having the flexibility to support it. You’ll need to:

  • Start small and apply the pattern to a small scope first to validate assumptions.
  • Leverage the Strangler pattern to gradually migrate functionality from legacy systems to the new architecture.
  • Continuously evaluate and regularly check if the chosen architecture is delivering expected benefits.

Following these steps, from deciding on the architecture to implementing it, the chances of success are much higher than going into this type of project without a plan.

Conclusion

Enterprise software architecture patterns provide proven blueprints for building complex systems that can withstand the test of time and changing business needs. By understanding the strengths, weaknesses, and use cases for each pattern, architects can make informed decisions that align technology with business goals.

The most successful enterprise architectures rarely follow a single pattern dogmatically. Instead, they thoughtfully combine elements from different patterns to address specific requirements, creating hybrid approaches tailored to their unique context. This pragmatic approach, guided by principles rather than dogma, tends to yield the best results.

As digital transformation accelerates, the ability to choose and implement the right architecture patterns becomes more critical for business success. Organizations that master this skill will build systems that are not just functional today but adaptable to tomorrow’s challenges.

Whether you’re building new enterprise systems or modernizing legacy applications, investing time in architectural planning pays off in reduced development costs, improved maintainability, and greater business agility. And with vFunction, the journey to modern architectures is more accessible even for organizations with large legacy codebases.

The right architecture won’t just solve today’s problems — it will create a foundation for tomorrow’s innovations. Choose wisely.Ready to modernize your enterprise application architecture? Learn more about how vFunction can help you get there faster with AI-powered analysis and automated modernization. Contact our team today to find out more.

What is real-time software architecture? Learn the essentials

Unlike past systems that relied on asynchronous and batch processing, real-time software architecture is now essential in today’s fast-paced digital world, where instant information processing is the norm. Speed, reliability, and predictability are key in real-time applications, from e-commerce platforms responding to customer actions to financial systems executing transactions in microseconds. This is where real-time software architecture comes in to make these applications and levels of performance possible.

The term “real-time” means systems that must respond within strict timeframes or deadlines. For architects and developers, understanding how to design these systems is crucial for building solutions that meet the demands. This blog delves into core principles, performance metrics, cost management, and real-world case studies, providing essential insights for mastering real-time systems. Let’s begin with the basics of real-time architecture. 

What is real-time software architecture?

In real-time software architecture, time is of the essence. It’s not just about producing the right result—it’s about doing so within a strict deadline. Even a correct output can be useless if it arrives too late.

Real-time software architecture is the design of systems where producing the right result at the right time is critical. These systems must respond to events within strict deadlines, delays can make outputs inaccurate, ineffective, or even harmful. Real-time systems fall into three categories:

  • Hard real-time systems: Missing a deadline is a system failure. Examples include industrial control systems and trading platforms where transaction timing is critical.
  • Firm real-time systems: Missing a deadline degrades service quality but doesn’t cause system failure. Examples include video conferencing, where occasional frame drops are annoying but don’t end the call.
  • Soft real-time systems: The result’s usefulness degrades after its deadline, but the system continues to function. Examples include content recommendation engines where slightly delayed personalization is still valuable.

In order to accommodate these different expectations, the target application must be engineered and designed with real-time performance in mind. Regardless of the expected timeframe for results, a well-built, real-time architecture manages resources, task scheduling, communication, and error handling to ensure timing constraints are met for its specific category.

Real-time vs. non-real-time software architecture

It’s also important to understand what does and doesn’t fall under real-time software architecture. Batch processing, which handles data in bulk at scheduled intervals, is a classic example of a non-real-time system. Although real-time architecture is a common route to go, not all use cases and scenarios require such capabilities. Here is a quick breakdown to help you understand the differences in approach and use cases.

AspectReal-time software architectureNon-real-time software architecture
Typical use sasesFraud detection, real-time personalization, live monitoring, trading appsPayroll, report generation, batch imports, content publishing
Success criteriaDepends on both the accuracy and timeliness of resultsDepends solely on accuracy, regardless of when result arrives
Application designEvent-driven, reactive, non-blocking, time-aware componentsSynchronous, request/response, blocking flows acceptable
Code structurePrioritizes predictable execution paths, minimal GC (garbage collection) impact, async I/OPrioritizes maintainability or throughput over timing precision
Technical debt impactArchitectural technical debt creates latency, unpredictability, and missed deadlines—disastrous for real-time systems. Even small inefficiencies, like blocking calls or unbounded queues, can break SLAs or trigger cascading failures.Debt slows delivery, increases maintenance costs, and may degrade performance, but rarely causes immediate failure. Deadlines are flexible.

Why do you need real-time software architecture?

Not long ago, the question was, “Why do we need real-time results?” but now real-time is the default. Nearly all applications include real-time components alongside historical data analysis. This shift highlights the essential role of real-time software and data architectures in modern applications, driven by key factors that include the following: 

Business-critical operations

For many systems, timing impacts business outcomes. Numerous applications and industries rely on genuine real-time systems to deliver outstanding customer experiences and boost revenue. Some examples of this are:

  • E-commerce platforms: Real-time inventory updates, personalization, and transaction processing directly impact conversion rates and customer satisfaction.
  • Financial services: Trading platforms, payment processing, and fraud detection systems require millisecond-level responsiveness to work.

Better user experience

As we’ve discussed, the expectation of “instantaneous” service is a challenging one to meet. True instant feedback is achievable only through the integration of real-time capabilities into the underlying services. For instance, users anticipate instantaneous feedback when utilizing: 

  • Web and mobile applications: Responsive interfaces with sub-second load times and instant updates (e.g., social feeds, collaborative editing) are now the norm.
  • Streaming services: Content delivery with minimal buffering and adaptive quality requires real-time decision making.

Data-driven decision making

In legacy systems, businesses would sometimes wait hours or even days for large batches of data to be processed and deliver insights. Now, relying on this approach would put you well behind competitors. This is why businesses use real-time analytics for instant insights, such as:

  • Customer engagement platforms: Real-time analysis of user behavior enables dynamic personalization and targeted interventions.
  • Business intelligence: Dashboards with live data visualization allow immediate response to changing conditions.

Event-driven systems

There has been a massive shift towards event-driven systems and architectures. In these cases, real-time architecture is the core component that makes the whole system tick. Modern distributed systems often rely on real-time event processing:

  • Microservices: Event-driven communication between services requires timely message delivery and processing.
  • IoT applications: Processing sensor data streams in real-time enables responsive automation and monitoring.

Whenever timing impacts business value, user satisfaction, or operational effectiveness, real-time software architecture is needed. So, what are the core principles that take a business need into reality when it comes to implementing real-time systems? Let’s delve deeper.

Core principles of real-time software architecture

If someone says that they require “real-time capabilities”, what is the rubric that we, as developers and architects, should adhere to? In this regard, certain key areas enable a real-time application to truly be considered one. Real-time software must adhere to core principles and criteria, from its code performance to the required infrastructure. 

1. Timeliness and predictability

The most important piece is that the system must guarantee tasks are completed within specified deadlines. This means predictable algorithms, bounded execution paths, and appropriate event prioritization. For example, a payment processing service must validate, process, and confirm transactions within milliseconds to maintain throughput during peak shopping periods.

2. Resource management

To hit these deadlines, system resources must be allocated efficiently to prevent contention that could lead to missed deadlines. This means focusing on:

  • Memory management with minimal garbage collection pauses
  • CPU scheduling that prioritizes time-critical operations
  • Network bandwidth allocation for critical data flows

3. Concurrency control

Many real-time systems handle continuous massive read and write operations, requiring efficient management of concurrent operations to uphold performance. To do this, applications must:

  • Use non-blocking algorithms where possible
  • Leverage efficient synchronization mechanisms with bounded waiting times
  • Use thread pool optimization for predictable execution

4. Fault tolerance

If a system misses a deadline, it is an issue; a critical real-time system going down is even more catastrophic. Real-time systems need rapid failure detection and recovery mechanisms in place. Typically, this involves: 

  • Circuit breakers to prevent cascading failures
  • Fallback mechanisms with degraded but acceptable performance
  • Health monitoring with rapid failure detection

5. Data consistency models

Depending on the type of data and decisions being derived from it, many real-time systems relax strict consistency for performance. In these cases, you’ll typically see:

  • Eventually consistent models for non-critical data
  • Conflict resolution strategies for concurrent updates for maintaining data integrity
  • CQRS (Command Query Responsibility Segregation) patterns to separate read and write operations

6. Event-driven design

Asynchronous, event-driven architectures often form the core of real-time systems. This means that code and architectural components of the system will include:

  • Message brokers like Kafka or RabbitMQ for reliable, ordered event delivery
  • Event sourcing patterns for auditable state changes
  • Stream processing for continuous data analysis

By following these principles, developers can build systems that meet the real-time needs of their use cases. These six principles make up the core requirements when designing and implementing real-time applications and services. Furthermore, understanding the various aspects of performance is crucial for a real-time system. This will be the focus of our next discussion. 

Performance metrics in real-time systems

“Fast”, “instant”, and other descriptions for performance don’t truly encompass the different ways that developers and architects need to address performance within real-time systems. In real-time systems, specific performance metrics help measure whether the system meets its timing requirements from various angles. Next, we will examine the key metrics to consider when determining the required system performance and evaluating your implementation. 

MetricDefinitionImportanceExample
Response time (latency)Time from event to system responseMust be within specified deadlinesAn e-commerce checkout must complete payment authorization in two seconds to minimize cart abandonment
ThroughputNumber of events or transactions per unit timeMeasures system capacity while meeting deadlinesA message broker must handle 100,000+ events per second during peak
JitterVariance in response timesHigh jitter means an unpredictable user experienceIn video conferencing, consistent frame timing is as important as raw speed
Scalability under loadHow metrics change as system load increasesReal-time systems must meet deadlines at peak capacityA real-time bidding platform must meet millisecond response times during high-traffic events
Recovery timeTime to recover from failureLong recovery times may violate SLAsA payment gateway should recover from node failures in seconds to maintain transaction flow

Although response time is usually the first place we start, there are several metrics beyond this to consider. Defining and monitoring these metrics ensures real-time systems meet the required level of timeliness and reliability that users expect. Next, let’s look at the architectural considerations for building and scaling these systems.

Architectural considerations for real-time systems

As architects and developers, we often have a playbook for how we build applications. In a traditional three-tier application, we focus on the presentation tier, or user interface; the application tier, where data is processed; and the data tier, where application data is stored and managed. Real-time requirements still follow these architectural patterns, but they demand specific technologies to support timely execution and responsiveness. Let’s look at the several architectural components and patterns that support real-time performance:

Message brokers and event streaming platforms

Apache Kafka, Amazon Kinesis, and similar platforms are the foundation for many real-time systems. They provide:

  • High-throughput, low-latency message delivery
  • Persistent storage of event streams
  • Partitioning for parallel processing
  • Exactly-once delivery

For example, a retail company may use Kafka to ingest and process customer clickstream, inventory updates, and order events across its digital platform.

In-memory data grids

Technologies like Redis, Hazelcast, and Apache Ignite enable ultra-fast data access. The benefits of using these technologies include:

  • Sub-millisecond read/write operations
  • Data structure support beyond key-value
  • Distribution and replication
  • Eventing for change notifications

Stream processing frameworks

Frameworks like Apache Flink, Kafka Streams, and Spark Streaming support real-time data processing. These frameworks provide:

  • Windowing operations for time-based analytics
  • Stateful processing of streaming data for complex event detection
  • Exactly-once processing guarantees
  • Low-latency aggregations and transformations

Reactive programming models

Beyond infrastructure-level components, reactive approaches to programming through frameworks like Spring WebFlux, RxJava, and Akka provide the application-level implementations for responsive systems. These languages/frameworks provide:

  • Non-blocking I/O to maximize resource utilization
  • Backpressure handling to manage overload conditions
  • Compositional APIs for complex asynchronous workflows
  • Thread efficiency through event loop architectures

Microservices and API gateway patterns

Real-time systems often leverage microservices architectures that align with best practices. This allows the deployed microservices to deliver:

  • Service isolation that prevents performance issues from spreading
  • Circuit breakers to handle degraded dependencies
  • Request prioritization at API gateways
  • Latency-aware load balancing

Caching strategies

Strategic caching is generally also required to improve response times for frequently accessed data. This takes into consideration factors such as:

  • Multi-level caching (application, distributed, CDN)
  • Cache invalidation strategies that balance freshness and performance
  • Predictive caching based on usage patterns
  • Write-through vs. write-behind approaches

Database selection and configuration

Lastly, the chosen database or data warehouse technologies must be able to accommodate real-time performance. These databases include:

  • NoSQL options like Cassandra or MongoDB for consistent write performance
  • Time-series databases for sensor or metrics data
  • The ability to create read replicas to scale query capacity
  • Support for appropriate indexing strategies to help with scalable read operations

Using these architectural components, developers can design and implement real-time systems. Much of the real-time capabilities rely on data infrastructure components. With the increasing popularity of real-time technologies, there are now technologies available to support every part of the real-time data stack. However, the numerous required components can lead to rising costs. Hence, effective cost management is crucial. 

Cost management in real-time architectures

Software is already expensive to build, but real-time software, with its added complexity and scalability demands, can quickly become a heavy burden.That being said, there are some strategic approaches that can be used to help tame those costs. Let’s look at the different categories, details, and potential strategies for cost savings for each.

Cost categoryDescriptionCost considerations
Infrastructure costsReal-time systems often require more infrastructureRight-sizing: Balance between peak capacity needs and average utilizationCloud vs. on-premises: Evaluate TCO considering performance requirementsHybrid approaches: Use cloud bursting for peak demand while maintaining baseline capacity
Development complexityReal-time requirements increase development effortSpecialized skills: Developers with experience in asynchronous programming, performance optimizationTesting infrastructure: Load testing tools and environments that can simulate production conditionsMonitoring solutions: Comprehensive observability platforms with sub-second resolution
Operational considerationsOngoing costs for maintaining real-time systems24/7 support: Real-time systems often support critical business functions requiring constant availabilityPerformance tuning: Continuous optimization as usage patterns evolveScaling costs: Ensuring capacity for growth and peak demand
Strategic approachesCost-effective implementation strategiesTiered architecture: Apply real-time only where neededGradual migration: Move components to real-time architecture incrementallySaaS options: Consider managed services for message brokers or stream processing

Balancing these factors helps you implement cost-optimized real-time capabilities. There would generally be trade-offs, such as using a managed instance of Kafka versus hosting your own. In this case, using the managed version may allow the team to get to market quicker and forgo the maintenance on the Kafka clusters, but this may come at a high infrastructure cost. However, you’ll need to balance the total cost of ownership of such a component to see if the savings from engineering effort would offset the increased cost. This is just one example of the mindset that architects and developers should use when looking at how to optimize costs for these systems. Last but not least, let’s take a look at where these real-time systems are being used.

Case studies and real-world applications

Given the prevalence of real-time applications in today’s world, we may not fully recognize the various areas where we encounter these capabilities daily. Real-time software architecture drives numerous business applications in various industries, such as: 

E-commerce: Dynamic pricing and inventory

Modern e-commerce platforms use real-time architecture to optimize customer experience and revenue.

  • Why real-time is required: Product pricing adjusts based on demand, competitor pricing, and inventory levels. Available-to-promise inventory updates across all sales channels.
  • Technology used: Kafka for event streaming, Redis for in-memory data storage, and microservices for scalable processing.
  • Real-world example: Amazon’s real-time pricing and inventory management set the standard for the industry, allowing it to maximize revenue while keeping customers happy with accurate availability information.

Financial services: Payment processing

Payment systems process millions of transactions, with varying levels of complexity and regulatory checks, and with tight timing requirements.

  • Why real-time is required: Authorization, fraud detection, and settlement must be completed in milliseconds to seconds.
  • Tech used: In-memory computing grids, stream processing for fraud detection, active-active deployment for resilience.
  • Real-world example: Stripe’s payment infrastructure processes transactions in real-time across multiple payment methods and currencies, with sophisticated fraud detection that doesn’t add noticeable latency.

Media: Content personalization

Streaming platforms deliver personalized experiences through real-time systems, helping to drive user engagement and satisfaction.

  • Why real-time is required: Content recommendations update based on viewing behavior, A/B testing of UI elements occurs on-the-fly, and video quality adapts to network conditions.
  • Tech used: Event sourcing for user activity, machine learning pipelines for recommendation generation, CDN integration for content delivery.
  • Real-world example: Netflix’s recommendation engine processes viewing data in real-time to update content suggestions, reportedly saving them $1 billion annually through increased engagement.

B2B platforms: Supply chain management

Modern supply chains rely on real-time visibility and coordination to ensure operations are running smoothly and revenue is not impacted.

  • Why real-time is required: Inventory levels, shipment tracking, order status, and demand forecasting all update continuously.
  • Tech used: IoT data ingestion, event-driven microservices, real-time analytics dashboards.
  • Real-world example: Walmart’s supply chain system processes over a million customer transactions per hour, with real-time updates flowing to inventory management, forecasting, and replenishment systems.

These examples show how real-time software architecture delivers business value across different domains. As user expectations for responsiveness increase, the principles and patterns of real-time architecture will play an important role in enhancing digital experiences.

Using vFunction to build and improve real-time architectures

Achieving real-time performance often requires transitioning from monolithic applications to event-driven, microservices-based architectures. vFunction accelerates this application modernization process with targeted capabilities:

  • Eliminate architectural technical debt to improve performance and reliability vFunction uses data science and GenAI to identify hidden dependencies and bottlenecks, then generates precise, architecture-aware prompts to automatically remediate issues that impact latency and responsiveness.
  • Identify and extract modular services optimized for real-time performance, and automatically generate APIs and framework upgrades to support scalable modernization. 
  • Modernize incrementally by prioritizing the components that matter most for real-time performance—vFunction guides you through gradual, low-risk transformation without the need for full rewrites.

The Trend Micro case study illustrates how vFunction’s AI-driven platform facilitated the seamless transformation of monolithic Java applications into microservices. Similarly, vFunction supported Turo in reducing latency by transforming its monolithic application into microservices. This resulted in faster response times, improved sync times, and enhanced code deployment efficiency for Turo.

By providing data-driven architectural insights, vFunction helps organizations build and maintain the responsive, scalable systems that real-time applications demand.

Conclusion

Real-time software architecture has evolved from a niche need in embedded systems to a mainstream approach for modern applications. As businesses strive to deliver data-driven experiences, the ability to process and respond in real time has become a key competitive advantage.

This blog explored the fundamentals of real-time systems: their classification (hard, firm, soft), guiding principles, and key performance metrics like latency, jitter, throughput, and recovery time.

Modern real-time architectures rely on technologies like event streaming platforms (Kafka), in-memory data stores, reactive programming models, and cloud-native patterns. When combined thoughtfully, these components enable scalable systems that meet strict timing guarantees. But great software isn’t just about the technology, it’s about how it’s architected.

To meet the demands of real-time systems, architects need continuous visibility into how applications are built and behave. vFunction surfaces architectural technical debt, identifies bottlenecks, and guides modernization—while enabling ongoing governance to monitor drift, enforce standards, and maintain performance over time.

Whether you’re migrating to microservices, meeting real-time SLAs, or preparing for growth, vFunction helps you move faster. Get in touch to see how architectural observability can help you build and maintain real-time software architecture that’s responsive, resilient, and ready to scale with your business.

.NET microservices architecture explained: A complete guide with examples

The shift from monoliths to microservices is one of the biggest paradigm shifts in modern software development. This technical evolution has led to a fundamental reimagining of how applications are designed, built, and maintained. This shift offers advantages for organizations using Microsoft’s .NET platform while presenting some unique implementation challenges.

Using a microservices architecture isn’t new. Companies like Netflix, Amazon, and Uber have famously used this approach to scale their applications to millions of users. But what has changed is the availability of the tools and frameworks to implement microservices effectively. .NET Core 1.0 (now just .NET) marked the release of a cross-platform, high-performance version of .NET perfect for building microservices.

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Ever wonder about the relevancy of .NET? Here is its ranking according to RedMonk’s 2024 Programming Language Rankings (hint: in the upper left-hand corner)

In this guide, we will cover the key concepts, components, and implementation strategies of .NET microservices architecture. We’ll look at why organizations are moving to this architectural style, how various .NET frameworks (not to be confused with .NET Framework) support microservices, and practical approaches to designing, building, and running microservices-based systems. Let’s begin by looking at things starting at the ground level, digging further into what microservices are.

What is microservices architecture?

At its core, microservices architecture is an approach to developing applications as a collection of small, independent services. Unlike monolithic applications, where all functionality is bundled into a single codebase, microservices break applications into smaller components that communicate through well-defined APIs.

From monoliths to microservices

Traditional monolithic applications bundle all functionality into a single deployment unit. The entire application shares a single codebase and database, and any change to one part of the application requires rebuilding and redeploying the whole system. While this simplifies initial development, it becomes a problem as applications grow in size and complexity.

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Consider a typical e-commerce application built as a monolith. The product catalog, shopping cart, order processing, user management, and payment processing all exist in a single codebase. A small change to the payment processing module requires testing and redeploying the entire application, increasing risk and slowing down the development cycle.

Microservices address these challenges by breaking the application into independent services, each focused on a specific business capability. Each service has its own codebase, potentially its own database, and an independent deployment pipeline. The key benefits of this isolation are that it allows teams to work independently, deploy frequently, and scale services based on specific requirements and usage rather than scaling the entire application.

Now, when it comes to deciding on what to build your microservices with, there are a massive number of languages and frameworks that can be used. However, if you’re here, you likely have already decided to move forward with .NET (and what a great choice that is!).

Choosing the right .NET tech stack

Although .NET existed well before the advent of microservices, the .NET ecosystem offers several advantages that make it perfect for microservices development. Much of the core building blocks of .NET lend themselves well to building scalable microservices easily. Let’s look at some of the highlights around why .NET makes a really great choice for developers and architects looking to build microservices:

Cross-platform

With .NET Core (now just .NET), Microsoft turned a Windows-only framework into a cross-platform technology. This is critical for microservices, which often need to run on different platforms, from Windows servers to Linux containers.

.NET applications now run on Windows, Linux, and macOS, giving organizations flexibility in their deployment environments. This cross-platform capability allows teams to choose the most appropriate and cost-effective hosting environment for each microservice, whether it’s Windows IIS, Linux with Nginx, or containerized environments orchestrated by Kubernetes. Of course, the ability to specifically support Linux gives those working in .NET the ability to use industry-preferred Linux containers that are liked for their small size and cost efficiency.

Performance optimizations

Performance is key for microservices, which often need to handle high throughput with minimal resource consumption. .NET has had significant performance optimizations over the years and is one of the fastest web frameworks available.

The ASP.NET Core framework includes high-performance middleware for building web APIs, essential for service-to-service communication in microservices architectures. The Kestrel web server included with ASP.NET Core is a lightweight, cross-platform web server that can handle thousands of requests per second with low latency.

Additionally, .NET’s garbage collection has been refined to minimize pauses, critical for services that need consistent response times. Just in time (JIT) compilation provides runtime optimizations, while ahead of time (AOT) compilation available in newer .NET versions reduces startup time — a big win for containerized microservices that may be created and destroyed frequently.

Containerization support

Modern microservices deployments frequently use containerization technologies like Docker to ensure consistency, scalability, and portability. .NET offers full support for containerization, including official Docker images tailored to different .NET versions and runtime configurations, making it easier to build, ship, and run .NET microservices in any environment.

The framework’s small footprint makes it perfect for containerized deployments. A minimal ASP.NET Core API can be packaged into a Docker image of less than 100MB, reducing resource usage and startup times. Microsoft provides optimized container images based on Alpine Linux, further reducing the size of containerized .NET applications.

Rich ecosystem

One thing that .NET developers love is the massive ecosystem of libraries and tools at their disposal. When it comes to building microservices, this is no exception.

For example, ASP.NET Core provides a great framework for building RESTful APIs and gRPC services, essential for inter-service communication between microservices. Entity Framework Core offers a flexible object relational mapping solution for data access with support for multiple database providers. These two examples are just two of thousands of popular libraries and tools available directly from Microsoft and other independent companies and developers.

Core principles of a microservices architecture

Successful microservices implementations follow several key principles that guide architectural decisions. These principles are what set microservices apart from other types of large, monolithic services that we saw dominate the past. Let’s take a look at three of the most important principles for developers and architects to follow as they design and build microservices.

Single responsibility principle

Each microservice should focus on a specific business capability, following the single responsibility principle from object-oriented design. This allows services to be developed, tested, and deployed independently.

For example, let’s imagine a hotel booking system. Instead of building a monolithic application that handles everything from room availability to payment processing, a microservices approach would separate these concerns into independent services. A room inventory service would manage room availability, a booking service would handle reservations, a payment service would process transactions, and a notification service would communicate with customers.

This separation allows specialized teams to own specific services and focus on the angles that are of highest concern. This might mean that the team responsible for the payment service would focus on compliance and integrating with different payment vendors, while the team managing the room inventory service would optimize for high-volume read operations.

Domain-driven design

Domain-driven design (DDD), a popular approach to creating microservices, provides a useful framework for identifying service boundaries within a microservices architecture. By modeling bounded contexts, teams can design services that align with business domains rather than technical concerns.

DDD encourages collaboration between domain experts and developers to create a shared understanding of the problem domain. This shared understanding helps identify natural boundaries within the domain, which often translate to microservice boundaries.

For example, in an insurance system, policy management and claims processing are distinct, bounded contexts. Each context has its own vocabulary, rules, and processes. This would mean that splitting these two functionalities into their own domains and subsequent implementations would be a good way to build them out. By aligning microservices with bounded contexts like this, the architecture becomes more intuitive and resilient to change.

Decentralized data management

Unlike monolithic applications that typically share a single database, each microservice in a well-designed system manages its own data. This decentralization of data has several benefits for teams.

First, it allows each service to choose the most appropriate data storage technology. A product catalog service might use a document database like MongoDB for flexible schema, while an order processing service might use a relational database like SQL Server for transaction support. This helps enable independent scaling of data storage as well. It allows a frequently accessed service to scale its database without affecting other services.

Secondly, it enforces service independence by preventing services from directly accessing each other’s databases. Services must use well-defined APIs to request data from other services, reinforcing the boundaries between services. Now, this doesn’t mean that there is necessarily a physically separate database, but there might be logical separations between the tables that one service uses. So multiple services still may use a single physical database, but with governance and structure in place to keep concerns separated.

One of the challenges here is that decentralization introduces potential issues with data consistency and integrity. Transactions that span multiple services that use completely independent databases can’t rely on database transactions. Instead, they must use patterns like Sagas or eventual consistency to maintain data integrity across service boundaries.

With these principles and challenges in mind, how does one design and implement a microservices architecture within .NET? That’s exactly what we will cover next!

Designing a .NET microservices system

Agnostic to the framework or library being used, designing a microservices system involves several key considerations. Building on the principles above, here’s how you would go about designing your microservices:

Service boundaries

Defining service boundaries is the most critical architectural decision in a microservices system. Services that are too large defeat the purpose of microservices, while services that are too granular can introduce unnecessary complexity.

Several approaches can guide the identification of service boundaries:

Domain-driven design: As mentioned earlier, DDD’s bounded contexts provide natural service boundaries. Each bounded context encapsulates a specific aspect of the domain with its own ubiquitous language and business logic.

Business capability analysis: Organizing services around business capabilities ensures that the architecture aligns with organizational structure. Each service corresponds to a business function like order management, inventory control, or customer support.

Data cohesion: Services that operate on the same data should be grouped together. This approach minimizes the need for distributed transactions and reduces the complexity of maintaining data consistency.

In practice, service boundaries often evolve over time. It’s common to start with larger services and gradually refine them as understanding of the domain improves. The key is to design for change, anticipating that service boundaries will evolve as requirements change.

API gateway pattern

As microservices are heavily dependent on APIs of various types, API gateways are generally recommended as a core part of the system’s architecture. An API gateway serves as the single entry point for client applications, routing requests to appropriate microservices.

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This pattern provides several benefits:

Simplified client interaction: Clients interact with a single API gateway rather than directly with multiple microservices. This simplification reduces the complexity of client applications and provides a consistent API surface.

Cross-cutting concerns: The gateway can handle cross-cutting concerns like authentication, authorization, rate limiting, and request logging. Implementing these concerns at the gateway level ensures consistent application across all services.

Protocol translation: The gateway can translate between client-friendly protocols (like HTTP/JSON) and internal service protocols (like gRPC or messaging). This translation, also referred to as a request or response transformation, allows internal services to use the most efficient communication mechanisms without affecting client applications.

Response aggregation: The gateway can aggregate responses from multiple services, reducing the number of round-trips client applications require. This aggregation is particularly valuable for mobile clients where network latency and battery usage are concerns.

In the .NET ecosystem, several options exist for implementing API gateways, including the always popular Azure API Management platform or other non-.NET gateways such as Kong, AWS API Gateway, Tyk, or newer entrants like Zuplo.

Communication patterns

Depending on the service, you’ll also need to decide how the microservices will communicate with one another. Microservices can communicate using various patterns, each with its own trade-offs, including:

Synchronous communication: Services communicate directly through HTTP/HTTPS requests, waiting for responses before proceeding. This is simple to implement but can introduce coupling and reduce resilience. If a downstream service is slow or unavailable, the calling service is affected.

Asynchronous communication: Services communicate through messaging systems like RabbitMQ, Azure Service Bus, or Kafka. Messages are published to topics or queues, and interested services subscribe to receive them. This decouples services temporally, allowing them to process messages at their own pace.

Event-driven architecture: Services publish events when significant state changes occur, and interested services react to these events. This enables loose coupling and flexibility, but can make it harder to understand the overall system behavior.

gRPC: This high-performance RPC framework is well-suited for service-to-service communication. It uses Protocol Buffers for efficient serialization and HTTP/2 for transport, resulting in lower latency and smaller payloads compared to traditional REST/JSON approaches.

The choice of communication pattern depends on the specific requirements of each interaction. Many successful microservices systems use a combination of patterns, choosing the most appropriate one for each interaction.

.NET microservices examples

One of the best ways to understand how to apply the principles of microservices to your own use case is to dig into some examples. Let’s look at examples of .NET microservices in real-world scenarios:

E-commerce platform

A modern e-commerce platform built with .NET microservices might include:

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Let’s quickly break down what each service is doing and how it works within the overall application:

Product Catalog service: Manages product information, categories, and search. Implemented as an ASP.NET Core API with Entity Framework Core for data access and Elasticsearch for full-text search.

Order service: Uses the Saga pattern to coordinate transactions across services.

Payment service: Integrates with payment gateways and handles transactions. Uses circuit breakers to handle payment gateway outages.

User service: Manages user profiles, authentication, and authorization. It uses an identity server for OAuth2/OpenID Connect.

Notification service: Sends emails, SMS, and push notifications to users. Subscribes to events from other services and uses message queues to handle notification delivery asynchronously.

These services talk to each other using a mix of synchronous REST APIs for query operations and asynchronous messaging for state changes. An API gateway routes client requests to the correct services and handles authentication.

The services are containerized using Docker and deployed to a Kubernetes cluster, with separate deployments for each service. Azure Application Insights provides distributed tracing and monitoring, with custom dashboards for service health and performance metrics.

Banking system

Now, let’s imagine a banking system built with .NET. In this type of application, you’d expect to see something along the lines of this:

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Here, we have a few key services that serve web, mobile, and branch banking, as well as a few other clients. The services themselves include an:

Account service: Manages customer accounts and balances. Uses SQL Server with Entity Framework Core for data access and optimistic concurrency to handle concurrent transactions.

Transaction service: Processes deposits, withdrawals, and transfers. Uses the outbox pattern to ensure reliable message publishing during transactions.

Authentication service: Handles user authentication and authorization with multi-factor authentication. Uses Identity Server for security token issuance.

Notification service: Sends transaction notifications and account alerts. Uses queuing to handle notification delivery even during service outages.

Reporting service: Generates financial reports and analytics. Uses a separate read model for reporting queries, the CQRS pattern.

Transactional consistency is key. The system uses database transactions within services and compensating transactions across services to ensure data integrity. Event sourcing captures all state changes as a series of events for regulatory compliance.

These two examples show a simple but complete view of what microservices architecture looks like when they are designed and built with best practices in mind. Once built, the microservices need to be deployed. Luckily, with the rise of microservices, complementary technologies have also risen up to accommodate the speed and complexity that deploying microservices brings.

Deployment and orchestration

Deployment and orchestration are key to managing microservices at scale. Containerization is probably the single most critical technology that has enabled microservices to be possible at scale. The two main technologies used for this are Docker containers and Kubernetes for orchestration.

Docker

Docker provides a lightweight and consistent way to package and deploy microservices. Each service is packaged as a Docker image containing the application and its dependencies. This containerization ensures consistent behavior across environments from development to production.

For .NET microservices, multi-stage Docker builds create efficient images by separating the build environment from the runtime environment. The build stage compiles the application using the .NET SDK, while the runtime stage includes only the compiled application and the .NET runtime. This results in smaller, more secure images that only contain what’s needed to run the application. It also improves build caching, reducing build times for incremental changes.

Kubernetes

While Docker provides containerization, Kubernetes handles orchestration. This includes managing the deployment, scaling, and operation of containers across a cluster of hosts. Kubernetes has several features that are particularly useful for microservices:

Declarative deployments: Kubernetes deployments describe the desired state of services (using a YAML or JSON file), including the number of replicas, resource requirements, and update strategies. Kubernetes will automatically reconcile the actual state with the desired state.

Service discovery: Kubernetes services provide stable network endpoints for microservices, abstracting away the details of which pods are running the service. This abstraction allows services to communicate with each other without knowing their physical locations.

Horizontal scaling: Kubernetes can scale services based on metrics like CPU utilization or request rate. This automatic scaling ensures efficient resource usage while maintaining performance under varying loads.

Rolling updates: Kubernetes supports rolling updates, gradually replacing old versions of services with new ones. This gradual replacement minimizes downtime and allows for safe, incremental updates.

Health checks: Kubernetes uses liveness and readiness probes to monitor service health. Liveness probes detect crashed services, while readiness probes determine when services are ready to accept traffic. For .NET microservices, the ASP.NET Core Health Checks middleware integrates seamlessly with Kubernetes health probes.

With these two technologies, many of the microservices that power applications we use every day are built and deployed. They help to make the complexity of deploying microservices manageable and feasible at scale. Even with the relative stability and ease they can bring, there is still the need to monitor and observe how the services are performing and if they are in a healthy state. Monitoring and observability are extremely critical for deployed microservices.

Monitoring and observability

Monitoring and observability are key to running healthy microservices systems. The distributed nature of microservices introduces complexity in tracking requests, understanding system behavior, and diagnosing issues. Traditional monitoring and alerting don’t quite meet the needs of the microservices world, so many specialized tools and approaches have been added to the arsenal to assist developers and support teams. The pillars of observability must be applied to every microservice to fully understand the context of the system. For example, an Order service covered by observability may look like this:

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Distributed tracing

In a microservices architecture, a single user request often spans multiple services. Distributed tracing tracks these requests as they flow through the system, providing visibility into performance bottlenecks and failure points.

OpenTelemetry, a Cloud Native Computing Foundation (CNCF) project, provides a standardized approach to distributed tracing in .NET applications. By instrumenting services with OpenTelemetry, developers can collect traces that follow requests across service boundaries.

Adding these capabilities is actually quite simple when it comes to services written in .NET. The preferred method is auto-instrumentation, which, with little or no code changes, can collect OpenTelemetry data throughout an application. The other method, which tends to be more customizable but also more complex, is to implement tracing directly in the code. For example, the following code shows how to configure OpenTelemetry in an ASP.NET Core service:

public void ConfigureServices(IServiceCollection services)

{

    services.AddOpenTelemetryTracing(builder => builder

        .SetResourceBuilder(ResourceBuilder.CreateDefault().AddService("OrderService"))

        .AddAspNetCoreInstrumentation()

        .AddHttpClientInstrumentation()

        .AddEntityFrameworkCoreInstrumentation()

        .AddZipkinExporter(options =>

        {

            options.Endpoint = new Uri("http://zipkin:9411/api/v2/spans");

        }));

}

If you need something a bit more tailored to a specific service, here’s how a typical controller (one for a fictitious OrderController) might include manual instrumentation for more detailed tracing:

[ApiController]

[Route("api/[controller]")]

public class OrdersController : ControllerBase

{

    private readonly IOrderService _orderService;

    private readonly ILogger<OrdersController> _logger;

    private readonly ActivitySource _activitySource;

    public OrdersController(

        IOrderService orderService, 

        ILogger<OrdersController> logger)

    {

        _orderService = orderService;

        _logger = logger;

        _activitySource = new ActivitySource("OrdersAPI");

    }

    [HttpGet("{id}")]

    public async Task<ActionResult<OrderDto>> GetOrder(Guid id)

    {

        // Create a new activity (span) for this operation

        using var activity = _activitySource.StartActivity("GetOrder");

        activity?.SetTag("orderId", id);

        try

        {

            var order = await _orderService.GetOrderAsync(id);

            if (order == null)

            {

                activity?.SetTag("error", true);

                activity?.SetTag("errorType", "OrderNotFound");

                return NotFound();

            }

            activity?.SetTag("orderStatus", order.Status);

            return Ok(order);

        }

        catch (Exception ex)

        {

            // Track exception in the span

            activity?.SetTag("error", true);

            activity?.SetTag("exception", ex.ToString());

            _logger.LogError(ex, "Error retrieving order {OrderId}", id);

            throw;

        }

    }

}

In the above, more detailed code, you can see that each step within the controller is being captured within the span. Without going into too much detail, here is a quick visualization to help understand how OpenTelemetry would capture different actions through a system:

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Spans help you understand how requests flow through a system by capturing critical performance and context information. Credit: Hackage.haskell.org

Traces collected by OpenTelemetry can be visualized and analyzed using tools like Jaeger or Zipkin. These tools provide insights into service dependencies, request latency, and error rates, helping developers understand how requests flow through the system.

Centralized logging

Centralized logging aggregates logs from all services into a single searchable repository. This centralization is key to troubleshooting issues that span multiple services.

In .NET applications, there are many different libraries that provide structured logging with support for various “sinks” that can send logs to centralized systems. The following code shows an example using Serilog to write logs to the console and Elasticsearch:

public static IHostBuilder CreateHostBuilder(string[] args) =>

    Host.CreateDefaultBuilder(args)

        .UseSerilog((context, configuration) => 

            configuration

                .ReadFrom.Configuration(context.Configuration)

                .Enrich.FromLogContext()

                .Enrich.WithProperty("Application", "OrderService")

                .WriteTo.Console()

                .WriteTo.Elasticsearch(new ElasticsearchSinkOptions(new Uri("http://elasticsearch:9200"))

                {

                    IndexFormat = $"logs-orderservice-{DateTime.UtcNow:yyyy-MM}",

                    AutoRegisterTemplate = true

                }))

        .ConfigureWebHostDefaults(webBuilder =>

        {

            webBuilder.UseStartup<Startup>();

        });

Once logs are centralized, tools like Kibana provide powerful search and visualization capabilities. Developers can query logs across services, create dashboards for monitoring specific metrics, and set up alerts for anomalous conditions.

Health checks

Health checks provide real-time information about service status, essential for automated monitoring and orchestration systems. ASP.NET Core includes built-in health check middleware that integrates with various monitoring systems.

Health checks can verify internal service state, database connectivity, and dependencies on other services. The following code is a figurative example that configures health checks for an order service:

public void ConfigureServices(IServiceCollection services)

{

    services.AddHealthChecks()

        .AddDbContextCheck<OrderDbContext>("database")

        .AddCheck("payment-api", () => 

            _paymentApiClient.IsAvailable 

            ? HealthCheckResult.Healthy() 

            : HealthCheckResult.Unhealthy("Payment API is unavailable"))

        .AddCheck("message-broker", () => 

            _messageBrokerConnection.IsConnected 

            ? HealthCheckResult.Healthy() 

            : HealthCheckResult.Unhealthy("Message broker connection lost"));

}

public void Configure(IApplicationBuilder app)

{

    app.UseHealthChecks("/health/live", new HealthCheckOptions

    {

        Predicate = _ => true,

        ResponseWriter = UIResponseWriter.WriteHealthCheckUIResponse

    });

    app.UseHealthChecks("/health/ready", new HealthCheckOptions

    {

        Predicate = check => check.Tags.Contains("ready"),

        ResponseWriter = UIResponseWriter.WriteHealthCheckUIResponse

    });

}

When added to the source code, these health checks can be monitored by orchestration platforms like Kubernetes, which can automatically restart services that fail health checks. They can also be consumed by monitoring systems like Prometheus or Azure Monitor to see service health over time.

How does vFunction help build and scale .NET microservices?

When it comes to designing and implementing microservices, there are a lot of factors to take into consideration. Much of the success of microservices depends heavily on how they are architected. Luckily, with vFunction, there is an easy way to make sure that you are following best practices and designing microservices to be scalable and resilient. 

In regard to microservices, vFunction stands out in three key areas. First, it helps teams transition from monolithic codebases to more modular, microservices-based architectures. Second, for those building or managing microservices, vFunction provides deep architectural observability—revealing the current structure of your system through analysis and live documentation—flagging any drift from your intended design. Third, vFunction enables architectural governance, allowing teams to define and enforce architectural rules that prevent sprawl, maintain consistency, and keep services aligned with organizational standards. Let’s dig into the specifics.

Converting your monolithic applications to microservices

The benefits of a microservices architecture are substantial. If your aging monolithic application hinders your business, consider transitioning to microservices.

However, adopting microservices involves effort. It requires careful consideration of design, architecture, technology, and communication. Tackling complex technical challenges manually is risky and generally advised against.

vFunction understands the constraints of costly, time-consuming, and risky manual app modernization. To counter this, vFunction’s architectural observability platform automates cloud-native modernization.

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Once your team decomposes a monolith with vFunction, it’s easy to automate extraction to a modern platform.

By combining automation, AI, and data science, vFunction helps teams break down complex .NET monoliths into manageable microservices—making application modernization smarter and significantly less risky. It’s designed to support real-world modernization efforts in a way that’s both practical and effective.

Its governance features set architectural guardrails, keeping microservices aligned with your goals. This enables faster development, improved reliability, and a streamlined approach to scaling microservices with confidence.

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vFunction supports governance for distributed architectures, such as microservices, to help teams move fast while staying within the desired architecture framework.

To see how top companies use vFunction to manage their microservices-based applications, visit our governance page. You’ll learn how easy it is to transform your legacy apps or complex microservices into streamlined, high-performing applications and keep them that way.

Conclusion

.NET microservices are a powerful way to build scalable, maintainable, and resilient applications. With .NET’s cross-platform capabilities, performance optimisations, and rich ecosystem, development teams can deliver business value quickly and reliably.

The journey to microservices isn’t without challenges. It requires careful design, robust DevOps, and a deep understanding of distributed systems. However, with the right approach and tools, .NET microservices can change how you build and deliver software.As you start your microservices journey, remember that successful implementations often start small. Start with a well-defined bounded context, establish solid DevOps, and incrementally expand your microservices architecture as you gain experience and confidence. If you need help with getting started and staying on the right path, many different tools exist to help developers and architects. One of the best tools for organizations making the move to microservices is vFunction’s architectural observability platform, which is tailored to helping organizations efficiently build, migrate, and maintain microservices at scale. Want to learn more about how vFunction can help with developing .NET microservices? Contact our team of experts today.