Microsoft named a Leader in the 2026 Gartner® Magic Quadrant for AI-Augmented Code Modernization Tools

Microsoft has proudly been recognised as a Leader in the inaugural 2026 Gartner® Magic Quadrant for AI-Augmented Code Modernization Tools. This recognition showcases software solutions designed to leverage specialised AI agents, generative AI, and deterministic analysis to expedite the transformation of outdated systems.

Modernising for the Cloud

From the outset, Microsoft has believed that modernisation should be one of the fastest, most reliable, and easily predictable processes for organisations. With the help of agentic AI, this is finally achievable. Traditionally, modernisation and innovation have clashed for budget allocation, often with modernisation trailing behind. Now, the scenario has flipped: modernisation is not just a task but the quickest path to innovation and an essential gateway to AI. By tackling years of technical debt, teams can integrate intelligence directly into their existing high-value systems. This creates a modern foundation, turning vital assets into platforms for future advancements.

And the good news? This isn’t just a distant possibility; it’s happening right now. Teams are transitioning from lengthy multi-year programs to finishing modernisation in a matter of days or weeks.

Today, businesses aren’t just migrating to the cloud or tackling technical debt; they are re-evaluating their applications, data, and infrastructure. They realise that their choices today will decide their AI readiness for tomorrow. Each decision made during modernisation now carries the weight of an AI consideration.

Microsoft Azure is tailored for this turning point. It offers the foundational elements and the engine required for both modernisation and AI transformation. Plus, it provides the governance and trust that businesses need to ensure that modernisation decreases risks related to security, data, and operations while enhancing AI readiness. With integrated tools powered by GitHub Copilot and Azure Copilot, Microsoft is not just leading the change but accelerating it.

The Challenge We Aimed to Address

Every business deals with code that they can’t afford to disregard nor can they rewrite completely. Legacy applications built on .NET Framework, outdated Java runtimes, and accumulated security issues all power critical operations but impede progress. For far too long, modernisation meant assembling large teams, enduring lengthy manual efforts, and risking the disruption of existing functionalities. Consequently, necessary updates have been postponed as technical debt piled up and the journey to the cloud grew longer.

Gartner perfectly encapsulates the potential: software engineering leaders can substantially shorten the time, effort, and risks linked with modernisation by employing AI-powered tools rather than traditional methods. Our focus lies precisely on narrowing the gap between the costs of inaction and those involved in moving forward. Instead of just speeding up the process, our aim is to redefine the economics of modernisation.

How It Works

Central to this process is GitHub Copilot modernisation, an all-inclusive approach that empowers teams to evaluate, upgrade, and migrate their applications to Azure, with AI managing repetitive tasks while developers maintain full oversight.

Our approach unfolds across two integrated layers. The Modernisation Agent, accessed through the Modernise CLI, allows architects and application managers to coordinate assessments, planning, and framework upgrades across multiple applications simultaneously, delivering detailed application-specific plans to developers. In the integrated development environment (IDE), developers then leverage GitHub Copilot to enact those plans: upgrading runtimes and frameworks, migrating dependencies to Azure services, generating infrastructure-as-code, and deploying to production. This transforms assessment, planning, transformation, validation, and deployment into a seamless, guided journey instead of a series of disjointed steps.

Equally important is what we chose not to automate: human judgement. Every recommendation remains clear, each modification is reviewable, and each step is validated against your own tests and pipelines. This is modernization at a machine’s speed, while still upholding the accountability that enterprises demand.

Our Unique Edge

• Comprehensive Language Support: GitHub Copilot modernisation covers the various programming languages in use today—.NET, Java, C++, and Python—rather than focusing solely on one stack. This allows platform teams to standardise their approach.
• Repeatable Expertise: Predefined tasks encapsulate best practices for common migration patterns, such as using managed identities, Azure Key Vault, Blob storage, or Microsoft Entra ID. Additionally, bespoke skills enable teams to transform their successful code changes into repeatable patterns, ensuring that knowledge remains within the organisation.
• Inbuilt Trust: Security features are integral to the workflow rather than an afterthought. Copilot checks builds, migrates unit tests, scans for vulnerabilities post-upgrade, and applies fixes automatically—bolstering your security stance throughout the modernisation process.
• Enterprise Readiness: Modernising a single application can be a project, but revitalising a complete portfolio is crucial for the business. Success at scale hinges on consistency: effective patterns become reusable tasks and skills that any team can deploy, reducing the need to rethink strategies for each application. This paves the way for modernisation to evolve beyond isolated achievements into a systematic, governable practice.
• The End Goal, Not Just the Process: Modernisation is an ongoing journey. Applications shift to Azure—be it Azure App Service, Azure Container Apps, or Azure Kubernetes Service—and become primed to leverage the full spectrum from hardware to software. This includes access to Microsoft Foundry’s catalogue of over 11,000 models, as well as Microsoft IQ, an intelligence layer that grounds AI agents in your organisation’s unique data. Teams aren’t just erasing technical debt; they’re opening doors to future innovations.

Real Results

The outcomes reported by teams already engaged in this process are reshaping the narrative. Customers employing GitHub Copilot modernisation capabilities indicate up to 70% less time spent on migration efforts and a 50% reduction in application upgrade efforts. Some have successfully transitioned over 500,000 lines of code in just a few weeks—work that would have previously taken months. The adoption figures echo this success: over 1.4 million developers have already utilised this experience.

Thanks to GitHub Copilot’s modernisation agent, we reduced the time required for our Java updates from days to just hours at SAP Labs. It works seamlessly at scale, significantly reducing manual complexities for our developers. The modernisation agent has become an essential part of our efforts to modernise.

—Dr Richard Cai, Managing Director, SAP Labs China

This Marks the Beginning

Being recognised as a Leader in this Magic Quadrant is a privilege and a commitment for us. Teams embracing AI-driven modernisation today will lay down secure, modern foundations for the next decade—whether in the cloud or in a hybrid setting—while others are still trying to navigate the complexities of the past. We’re dedicated to enhancing our offering with richer language support, more advanced automation, and an even more direct path from legacy code to production on Azure.

To our customers and partners who’ve embarked on this journey with us, thank you. Your collaboration has been key to this achievement and the recognition we’ve received.

Are you eager to discover what’s possible? Dive into agentic modernisation and start with a single application this week. You can also download a complimentary copy of the report to understand why Microsoft was recognised as a Leader.

Gartner ® Magic Quadrant for AI-Augmented Code Modernization Tools, Prasanna Lakshmi Narasimha, Erin Khoo, Deacon D.K Wan, Wei Jin, 3 August 2026

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