1993 just called. It wants its IT systems back…

Your legacy systems probably are not as old as the IRS’ current systems (some are over 60 years old!). Still, modernizing your legacy technology has been at the back of your mind A LOT recently.

Because it presents a cybersecurity hazard.

Because outdated systems are racking up maintenance costs while generating less and less functionality every day.

Because you’re ready to take your company's digital transformation to the next level.

We understand. You’re ready for a legacy system modernization.

But how can you gain the support of key stakeholders—whether that’s your business associate or the whole boardroom?

Keep reading for your legacy system assessment, so you know when it is ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems seeing as they are built from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually critical to day-to-day business workflows, points out Gartner.

How essential are legacy systems? Without the legacy system on which they rely, commercial business processes such as payroll, inventory management and replenishment, and digital payment transactions would come to a halt.

Legacy systems drive public-sector infrastructure that we take for granted: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are VITAL.

But, the costs of modernization (including unsuccessful modernization efforts) and maintenance of legacy systems are cumbersome, totaling $35 trillion for businesses and governments globally since 2010.

It’s no surprise, however, that optimizing or replacing legacy systems with newer technology, whether it be SaaS technology solutions, cloud computing, or on-site deployment is one of the most difficult tasks CIOs in small and large organizations confront in their careers.

What Are the Advantages of Modernizing a Legacy System?

“For many organizations, legacy systems are seen as holding back the business initiatives and business processes that rely on them. When a tipping point is reached, application leaders must look to application modernization to help remove the obstacles.” — Stefan Van Der Zijden, VP Analyst, Gartner

What “obstacles” could legacy system modernization remove?

Short answer, A LOT.

5 Essential Benefits of Legacy System Modernization

If you opt for legacy system enhancements or a complete digital transformation, upgrading your legacy systems can help you future-proof your business:

1. Optimize Your Business Operations

A legacy system update, such as the deployment of SaaS solutions, new business intelligence software, or cloud computing, can enhance your workflow and other business processes.

It’s not uncommon for businesses to expend over half of their IT budget on sustaining legacy systems, for example maintaining data centers rather than performing a data migration to the cloud for support ticket management.

CIOs who’ve applied technological upgrades or even a comprehensive digital transformation have reduced production costs in their organizations by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

CIOs are well aware that the costs of maintaining legacy systems, infrastructure, and applications can demand a large percentage of the organizational budget.

As a matter of fact, companies in the private and public sectors spent $26.25 trillion in legacy IT systems operations and maintenance costs over the 11-year period from 2010 to 2021.

3. Enhance Your Business’s Customer Experience and Employee Retention

Legacy technology glitches and failures can lead to unforeseen downtime for your organizational operations.

If you’re an air carrier, IT systems instabilities can cause delays and even the cancellation of thousands of flights. It was a serious issue for carriers. Obsolete systems are bad for business.

Your staff undoubtedly resent the downtime and unsatisfactory user experience of the older technology too. And once the tech in their pockets has seen more advancements in the last decade than your IT systems—it’s time for an upgrade. For your reputation.

4. Minimize Your Security Risk and Maintain Compliance

If your existing systems are so antiquated that their provider no longer maintains them, they could constitute a serious security risk to your organization.

Often neglected and outdated systems, your legacy software, does not receive the security patches and updates it requires to block cybersecurity breaches.

Major failures happen with legacy systems frequently. Remember Equifax?

5. Make Your Business Operations More Agile for Greater Scalability

A one-off integration to your legacy system here, a hotfix for your legacy software there. In no time, your company is clunking along on a Frankenstein legacy system.

Your outdated systems can hardly handle various data types—let alone the enormous amounts of data your IoT devices produce.

Forward-looking CIOs know legacy software upgrading is essential to enhance IT system compatibility with new technology tools.

That is indeed what the CIOs at LinkedIn did when the organization was scaling into the largest global professional network, converting its software design from a REST API or an event-driven architecture.

CIOs for SAP, Netflix, Unilever, Amazon, and the Federal Aviation Administration have also followed suit.

When Should I Replace My Legacy System? 6 Questions to Ask

CIOs must evaluate three primary factors when assessing if it is time to modernize legacy technology: technology, architecture, and functionality.

Below are a few things to consider before any legacy system upgrade:

1. How much of your IT budget are you spending on legacy software maintenance or forced downtime as a result of a full or partial malfunction of your old system?

If your cost of keeping older systems are depleting considerable resources, it may be time for a more cost-effective solution.

2. Do your legacy systems support newer tech and recent IT breakthroughs?

Or is it inconvenient to integrate with a new SaaS solution or API? Because of obsolete technology or haphazard customization? If you answered “yes,” it’s time to modernize your legacy system.

3. Is your legacy system's original developer no longer in business?

Or are you having trouble locating mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system introduces a serious threat to your business and should be upgraded.

4. Does your legacy system offer insight into real-time data transfers and workflow patterns?

Because when you are unable to take advantage of enormous data, you won’t have the kind of business intelligence you need to be competitive. Adieu, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system coincide with an uptick in client complaints and support tickets?

You won’t bring in any new business with such a bad customer experience. It’s time for a modern system.

6. Is your legacy system SLOW?

It may be time to take the plunge and make the change. The future is approaching at a frenetic pace. And it’s here.

How Can I Revamp My Legacy System?

What are your modernization solutions if you've determined that your legacy systems no longer fulfill your organizational needs?

1. Replace Your Legacy Systems

Out with the old, and in with the new system—and all the speed, flexibility, and scalability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

Rewrite the software components, so you can integrate modern tech solutions, big data capacity, and business intelligence.

3. Redesign Your Legacy Technology

Redesign your legacy software architecture to provide more agility and scalability, as LinkedIn and a slew of other outstanding firms have done.

4. Reconfigure Your Legacy Systems

Restructure your code, so you can kick technical debt to the curb.

5. Rehost Your Legacy Systems

Adopt cloud computing by migrating data and redeploying applications to cloud infrastructure.

7. Digest Your Outdated Systems Data and Functions

Encapsulate your functions and data into the software, so you can access them as services via an API.

8. Migrate Your Legacy Systems Application

Transfer your legacy systems application to a new run-time tool without drastically modifying the code or sacrificing functionality.

How Wave Can Assist with Your Legacy System Upgrade in Lexington?

Do you believe it’s time to modernize your legacy system? Begin with Wave’s extensive system audit, so you can get insights into its functionality and predicted lifespan.

That way, you’ll know whether your company can get by with a few legacy system modifications or if you need an extensive digital transformation now.

Whatever the situation may be for your legacy systems, Wave can carry out the needed modifications or replacements: from adding attributes that improve the customer experience or simplifying workflows with automation and Business Intelligence tools.

We'll also offer you the continuous IT support you need to maximize your modernization investment.

The future is calling. And companyname is ready to help! Schedule a consultation today.