The company is following the best practice of implementing loosely coupled dependencies by migrating the application to AWS and dividing the application into microservices. Loosely coupled dependencies are a design principle of the AWS Well-Architected Framework that helps to reduce the interdependencies between components and improve the scalability, reliability, and performance of the system. By breaking down the monolithic application into smaller, independent, and modular services, the company can reduce the complexity and maintenance costs, increase the agility and flexibility, and enable faster and more frequent deployments. AWS CloudFormation is an AWS service that provides the ability to manage infrastructure as code. Infrastructure as code is a process of defining and provisioning AWS resources using code or templates, rather than manual actions or scripts. AWS CloudFormation allows users to create and update stacks of AWS resources based on predefined templates that describe the desired state and configuration of the resources. AWS CloudFormation automates and simplifies the deployment and management of AWS resources, and ensures consistency and repeatability across different environments and regions. AWS CloudFormation also supports rollback, change sets, drift detection, and nested stacks features that help users to monitor andcontrol the changes to their infrastructure. References: Implementing Loosely Coupled Dependencies, What is AWS CloudFormation?