Hi mham, yes running an application on old technologies will not only degrade the application performance also your application cannot compete with new technologies. As long as your clients are happy, you will be happy, but once they ask you with latest technology. Yes, you need to do that. You are on the right track for developing with right tools like MVC. Or else you can do one more thing like have two different layers like client and server and write a web service separately where you will have all db related logic. Its like a Client Server architecture. So if you develop a separate service. later you can use the same service in your android, iOS or windows or some other service. So it becomes like a "Write once and Use else where". If you have a large data sets which will degrade the application performance, there are many alternative ways that you can do in order to increase the performance of application with less effort. One good thing is Paging or Data virtualization. Using AJAX based controls, queries and now a days there are lot of java script frameworks available and can choose any one of them to implement the best for your needs. Well, I don't know MVC so I can't help on it, but if you asked me on how to do with classic ASP.Net with Sql Server and WCF service then I can help you.
Regards, Ganesh