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In the video tutorial, Eric Minick from IBM Cloud discusses three major transformations happening in application modernization: changes in architecture, infrastructure, and delivery methods. Previously, applications were monolithic, running on physical servers, and developed using waterfall-style methods with long planning phases. Now, organizations are moving towards a distributed architecture, often following a Service-Oriented Architecture (SOA) approach. These changes reflect a shift towards more agile and flexible ways of working in modern software development.