Enterprise Modernization • AI & Knowledge Graphs

The Architecture of Understanding

Why 80% of COBOL-to-Java Migrations Fail—And How Knowledge Graphs Fix It

A major bank attempted to migrate 30 years of COBOL using a commercial AI coding assistant. The syntax conversion was perfect. The application crashed the database on deployment. The failure wasn't one of syntax—it was one of context.

Standard LLMs treat code as linear text, suffering from "Lost in the Middle" syndrome. Veriprajna's Repository-Aware Knowledge Graphs shift from stochastic text prediction to deterministic graph reasoning, achieving mathematically verifiable modernization.

70-80%
Failure Rate of Legacy Modernization Projects
Industry Research 2025
$1.52T
U.S. Technical Debt Accumulation
Banking & Gov Systems
95%
ATM Transactions on COBOL
43% of Banking Systems
2-3x
Developer Productivity Increase
With Graph-Based AI

Transforming Enterprise Legacy Infrastructure

Veriprajna partners with Fortune 500 enterprises, financial institutions, and government agencies to de-risk modernization through structural understanding—not statistical guessing.

🏦

For Financial Services

Migrate mission-critical COBOL transaction systems to cloud-native Java microservices without operational risk. Our Knowledge Graph approach ensures zero data corruption and maintains regulatory compliance throughout the transition.

  • • Deterministic variable dependency resolution
  • • Auditable migration path for compliance
  • • 50% reduction in post-deployment bugs
🏛️

For Government Agencies

Break free from the maintenance trap where 80% of IT budgets service aging infrastructure. Transform PL/I and RPG systems into modern, maintainable architectures while preserving institutional logic.

  • • Capture retiring developer knowledge in graphs
  • • Eliminate dependency on scarce legacy skills
  • • Enable continuous modernization cycles
💼

For Enterprise CTOs

Standard "LLM Wrappers" accelerate the creation of flawed code. Veriprajna's agentic workflow with compile-fix loops shifts validation burden from humans to AI, delivering production-ready code on first pass.

  • • Graph-based impact analysis for change management
  • • Automated dead code detection (20-30% reduction)
  • • Fast time-to-market with low technical debt

The Anatomy of the "Bank Failure"

Patient Zero of AI modernization failures: Why syntax-perfect code crashes in production

The Scenario

Challenge: A major financial institution needed to migrate a core wire transfer processing system from IBM Mainframe (COBOL/DB2) to cloud-native Java microservices.

Approach: They deployed a popular AI coding assistant—an LLM wrapper—to translate a COBOL program containing complex COMPUTE statements.

Initial Success: The AI translated syntax perfectly. The code compiled. Unit tests (generated by the same AI from local context) passed.

Production Failure: Upon deployment to UAT, the first transaction crashed the database consistency check.

The Root Cause

❌ What the AI Saw

Variable TRN-LIMIT as a simple numeric field in local context

🔍 What the AI Missed

TRN-LIMIT was defined in a COPYBOOK thousands of lines earlier with a REDEFINES clause

⚠️ The Consequence

Mainframe: packed decimal. Java: standard integer. Mismatch corrupted binary data

Contextual Blindness

Standard LLMs suffer from "Lost in the Middle" syndrome. When critical definitions appear in the middle of massive context windows, attention degrades significantly. The AI statistically overlooks mid-document information.

Hallucinated Assumptions

When the AI couldn't find TRN-LIMIT's definition, it didn't stop—it hallucinated a "plausible" type based on probability. In banking systems, assuming types leads to rounding errors and data corruption.

Syntactic Success ≠ Semantic Correctness

The Java code was syntactically perfect and compiled without errors. But it failed to replicate the exact runtime behavior of the original COBOL. This is the difference between translation and understanding.

The "Lost in the Middle" Syndrome

Why context window size doesn't solve the problem: Understanding the cognitive architecture of LLMs

The U-Shaped Performance Curve

Large Language Models exhibit a well-documented attention pattern when processing long contexts:

Primacy Bias
High accuracy recalling information at the beginning of prompts
The Trough
Performance degrades significantly for middle-positioned information
Recency Bias
High accuracy recalling information at the end of prompts

The Implication for Modernization

A single COBOL program can be thousands of lines long. When critical variable definitions—like MAX-TRANSACTION-LIMIT—appear in the middle of this context, the AI is statistically likely to overlook it. The AI then hallucinates a default type, leading to catastrophic semantic divergence.

Attention Distribution in Long Contexts

Empirical research showing degraded LLM performance for information in the middle of context windows

Why Bigger Context Windows Don't Solve This

Modern LLMs boast context windows of 1 million+ tokens. However, the ability to effectively use that context is not uniform. A larger window doesn't eliminate the attention trough—it just makes it wider.

In enterprise COBOL systems with thousands of COPYBOOK dependencies, critical definitions can be scattered across multiple files totaling millions of lines. No amount of context window expansion can fix the fundamental issue: stochastic attention is not structural understanding.

Table: LLM Cognitive Limitations

Phenomenon Impact
Lost in Middle Missed Dependencies
Hallucination Invented Logic
Primacy/Recency Core Logic Ignored
Stochastic Gen Inconsistent Output

Text-Based vs. Graph-Based Analysis

Standard AI treats code as a "bag of words," searching for textual similarity. When Module A calls Module Z through a chain of intermediaries, text-based retrieval fails because the modules share no keywords.

Veriprajna's Graph Traversal

Our Knowledge Graph represents code as a relational database of logic. Every variable, function, and dependency exists as a node with explicit edges. When analyzing Module A, we traverse the graph to discover:

✓ Direct calls (CALLS edges)
✓ Variable definitions (DEFINES edges)
✓ Transitive dependencies (A→B→C)
✓ Data flow (UPDATES/READS edges)

Toggle the visualization to see how our system discovers hidden dependencies that text-based AI misses entirely.

Interactive Dependency Graph
Text-Based AI
Try it: Toggle to compare text-based keyword matching vs. graph-based structural traversal

The Physics of Software: Code as a Graph

Software is not text. It is a highly structured system of logical dependencies, data flows, and state changes that exists in a multi-dimensional topological space.

Abstract Syntax Trees

AST: Beyond Text

An AST captures the hierarchical grammatical structure of code. COMPUTE INTEREST = PRINCIPAL * RATE becomes a tree of AssignmentNode → MultiplicationNode → Operands.

Unlike "text chunking," AST parsing respects logical boundaries
Call Graphs

Control Flow Mapping

Call Graphs visualize the nervous system of the application—which subroutines invoke others. Critical for breaking monoliths into microservices without dangling references.

Identifies dead code, God classes, circular dependencies
Transitive Closure

Deep Dependency Resolution

The "Bank Failure" occurred due to A→B→C transitive dependency. Our graph calculates full closure, tracing dependency chains to the "Root of Truth" for every variable.

Ensures all imports and definitions are correctly mapped

Structural Analysis vs. Text Analysis

Feature Text Analysis (Standard AI) Structural Analysis (Veriprajna)
Unit of Analysis Token / Word Node (AST Element)
Context Boundary Arbitrary Token Limit Logical Scope (Function/Class)
Dependency Resolution Keyword Matching Graph Traversal
GOTO Handling Treats as Text String Maps Control Flow Edges
Accuracy Probabilistic Deterministic

The Veriprajna Semantic Forge

A purpose-built pipeline for legacy modernization—combining static structure with semantic meaning

Phase 1

Intelligent Parsing

Tree-sitter parsers ingest COBOL, JCL, PL/I, Java (13+ languages). Semantic Chunking uses AST to identify logical boundaries—chunk by SECTION/PARAGRAPH, not arbitrary tokens.

Every node = complete executable logic unit
Phase 2

Entity Extraction

Extract entities (Classes, Variables, DB Tables) and relationships (CALLS, UPDATES_TABLE, IMPORTS_COPYBOOK, DEFINES_VARIABLE) to populate Neo4j/Memgraph.

Query: "Show paragraphs updating CUSTOMER-ID"
Phase 3

Entity Resolution

Symbol Resolution merges duplicate references. Cross-Modal Merging links documentation ("User API" PDF) with code (UserAPI class) via embeddings, connecting intent with implementation.

Links the "Why" (docs) with the "How" (code)
Phase 4

Transitive Closure

Calculate deep dependency chains (A→B→C). When analyzing Module A, traverse the graph to identify the Root of Truth for every variable, even if Module C is in a different repository.

Prevents "Bank Failure" scenarios

The Resulting Knowledge Graph Architecture

Graph Nodes (Entities)

  • Code Nodes: Classes, Methods, Paragraphs, Variables
  • Data Nodes: Database Tables, COPYBOOKS, Schemas
  • Meta Nodes: Documentation, Requirements, Test Cases

Graph Edges (Relationships)

  • CALLS: Function invocation relationships
  • DEFINES/READS/UPDATES: Variable lifecycle
  • IMPORTS/INHERITS: Dependency chains

GraphRAG vs. Vector RAG

Why semantic similarity fails for code, and how graph traversal solves multi-hop reasoning

Vector RAG Limitations

Variable Renaming Breaks Similarity

If a developer renames Account to Acct, the semantic similarity drops, even if the logic is identical.

Logic vs. Keywords

Searching for "Interest Calculation" might miss the actual math if the function is named FNC-001 with no comments.

Fragmented Context

Retrieves chunks based on cosine distance. Might retrieve a unit test and UI comment, but miss core business logic with different variable names.

GraphRAG Advantages

Structural Relationships

Retrieval based on graph edges, not text similarity. Finds all CALLS, READS, INCLUDES relationships regardless of naming conventions.

Connected Context

Relevance Expansion traverses graph to pull subroutines, variable definitions, copybooks—logically inseparable pieces assembled into coherent prompts.

Multi-Hop Reasoning

Can answer "If I change Module A, which reports in Module Z break?" by traversing A→B→...→Z even when modules share zero text similarity.

Comparative Analysis

Capability Vector RAG GraphRAG
Retrieval Key Cosine Distance (Similarity) Graph Edge (Relationship)
Context Quality High Recall, Low Precision High Precision, Connected
Multi-Hop Reasoning Poor (Misses Indirect Links) Excellent (Traverses Chains)
Hallucination Risk High (Guesses Links) Low (Explicit Links)
Best Use Case Unstructured Text (FAQs) Structured Systems (Code)

Beyond Chatbots: The Agentic Workflow

Autonomous AI agents with compile-fix loops shift validation burden from humans to machines

❌ Shallow Wrapper Workflow

1
User: "Convert this code"
2
Wrapper sends text to GPT-4
3
Returns Java code
4
Code fails to compile or run
Developer manually debugs

Result: Human becomes the error-correction loop, spending hours fixing hallucinated dependencies.

✓ Veriprajna Deep Agent Workflow

1
Planning
Analyze AST, query Knowledge Graph
2
Retrieval
Fetch GraphRAG context with dependencies
3
Generation
Generate Java with syntax constraints
4
Verification (Loop)
Compile in sandbox
5
Self-Correction
If error, query graph & regenerate
6
Validation
Run unit tests for behavior match

Result: Production-ready code on first pass, dramatically reducing developer validation overhead.

Human-in-the-Loop Supervision & Interpretability

While the agent is autonomous in execution, it is supervised in strategy. The Knowledge Graph provides Interpretability—developers can see exactly why the AI made a decision: "The AI imported com.bank.logic because it found a dependency on COPYBOOK-X at line 2,847."

Transparency for Regulated Industries

Banking and government require auditable decisions. We move from "Trust me, I'm AI" to "Here is the citation chain for this logic."

Compile-Fix Loop ROI

Shifts validation burden from human to AI. Reduces post-generation debugging time by 70-80%, achieving 2-3x productivity gains.

Calculate Your Modernization ROI

Estimate the cost savings and productivity gains from graph-based modernization vs. manual or wrapper-based approaches

500K
$150
Medium
Low Medium High
Manual / Wrapper AI
$8.5M
18-24 months
Veriprajna GraphRAG
$2.8M
6-9 months
Estimated Savings
$5.7M
67% cost reduction + faster time-to-market

Engineering the Migration: Technical Deep Dive

How Veriprajna solves the hardest problems in COBOL-to-Java migration

Global Variable Trap

❌ The Problem

COBOL uses global variables in DATA DIVISION modified by various PERFORMs. Java best practice requires encapsulation—no hidden state.

✓ The Solution

Data Flow Analysis traces variable lifecycle. If CALC-TAX reads GROSS-INCOME, graph identifies it as Input Dependency and generates explicit parameter passing.

calcTax(BigDecimal grossIncome)

GOTO Spaghetti

❌ The Problem

GOTO creates non-linear control flows. Java has no GOTO. Text-based AI generates recursive calls → StackOverflowError.

✓ The Solution

Control Flow Graph maps GOTO destinations. Pattern Recognition identifies:

  • • GOTO backward = Loop (while)
  • • GOTO skip block = Conditional (if)
  • • GOTO exit = Return statement
Refactored into structured Java

Dead Code Detection

❌ The Problem

Legacy systems contain 20-30% dead code (old promotions, debug routines). Text-based AI migrates everything—waste of money, increased security surface.

✓ The Solution

Call Graph identifies Unreachable Nodes—paragraphs with no incoming edges (no callers). Flag for deletion before migration starts.

Typical Result
20-30% codebase reduction → significant cost savings & cleaner architecture

Is Your AI Looking at the Text, or the Structure?

Veriprajna's Repository-Aware Knowledge Graphs don't just improve migration success rates—they fundamentally change the physics of understanding.

Schedule a consultation to analyze your legacy codebase and model the ROI of graph-based modernization.

Technical Assessment

  • • Codebase structural analysis & complexity scoring
  • • Dependency graph visualization & dead code audit
  • • Custom ROI modeling for your modernization
  • • Risk assessment vs. wrapper-based approaches

Pilot Program

  • • 4-week Knowledge Graph construction pilot
  • • Proof-of-concept migration on sample module
  • • Side-by-side comparison: Manual vs. Wrapper vs. Veriprajna
  • • Comprehensive feasibility & impact report
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📄 Read Full 19-Page Technical Whitepaper

Complete technical report: AST parsing, GraphRAG architecture, agentic workflow design, comparative analysis vs. Vector RAG, enterprise case studies, comprehensive works cited.