The Enterprise application complexity of enterprises has assumed gigantic proportions in last 3-4 decades. In large enterprises, thousands of applications run on varied platforms. IT is not able to cater to the fast changing business needs as productivity is hindered by the siloed and duplicate applications.  One of the key objectives of CIOs in 2015 onwards is to how to make future ready of the Enterprise applications so that they can meet the macro-economic business challenges of the modern day. This paper examines the major business challenges and drivers for enterprise application modernization, key benefits of optimization and modernization.