1993 just called. It wants its IT systems back…

Your legacy systems probably are not as outdated as the IRS’ present systems (some date back 60 years!). However, revamping your legacy technology has been at the back of your mind A LOT lately.

Because it poses a security hazard.

Because outdated systems are costing more to maintain while providing less and less capability every day.

Because you’re ready to level up your organization’s digital transformation.

We understand. You are ready for a legacy system modernization.

But how do you get the buy-in you need from primary stakeholders—whether that is your business associate or the entire boardroom?

Keep reading for your legacy system evaluation, so you know when it’s the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are antiquated systems since they are derived from outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are typically essential to everyday business processes, points out Gartner.

How relevant are legacy systems? In the commercial sector, business processes like payroll, inventory tracking and replenishment, and cashless payment transactions would grind to a halt without the legacy system on which they operate.

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

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

It’s no wonder, then, that upgrading or substituting legacy systems with newer technology, whether it be SaaS technology solutions, cloud computing, or local installation is one of the greatest challenges CIOs in small and large organizations face in their careers.

What Are the Advantages of Updating 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 the upgrading of legacy systems eliminate?

Short answer, A LOT.

5 Significant Advantages of Legacy System Modernization

Whether you go for legacy system enhancements or a comprehensive digital transformation, upgrading your legacy systems can help you future-proof your firm:

1. Optimize Your Business Processes

A legacy system modernization, such as the implementation of SaaS platforms, modern business intelligence software, or cloud computing, can improve efficiencies in your workflow and other business operations.

It’s not uncommon for businesses to waste over half of their IT budget on sustaining legacy systems, for instance maintaining data hubs instead of carrying out a data migration to the cloud for support ticket management.

CIOs who’ve applied technological improvements or even a full-blown digital transformation have lowered operational expenses in their organizations by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

CIOs are well aware that legacy system, application, and infrastructure maintenance can demand a substantial percentage of the organization’s budget.

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

3. Improve Your Company’s Customer Experience and Employee Retention

Legacy technology glitches and failures can result in unplanned downtime for your business processes.

If you’re an air carrier, IT systems faults can result in delays and even the cancellation of thousands of flights. It was a real problem for airlines. Obsolete systems are bad for business.

Your personnel undoubtedly loathe the downtime and awful user experience of the obsolete technology too. And when the technology in their pockets has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your image.

4. Reduce Your Security Risk While Maintaining Compliance

If your present systems are so antiquated that their provider no longer services them, they could pose a serious security risk to your business.

Your legacy software, which is frequently ignored and out of date, does not receive the security updates and patches it needs to avoid cybersecurity breaches.

Substantial breakdowns occur with legacy systems regularly. Remember Equifax?

5. Increase the Agility of Your Business Processes for Higher Scalability

A single integration to your legacy software here, a hotfix for your legacy system there. Before long, your company is clunking along on a Frankenstein-style legacy system.

Your obsolete systems are incapable of handling multiple data formats—not to mention the enormous amounts of data generated by your IoT devices.

Prospective CIOs realize that legacy software upgrading is mandatory to enhance the compatibility of their IT systems with modern technological solutions.

That’s exactly what the LinkedIn’s CIOs did while the company was growing into the world’s premier professional network, converting its software architecture from a REST API or an event-driven architecture.

CIOs for Unilever, SAP, Netflix, the Federal Aviation Administration, and Amazon have all taken the same approach.

When Should I Upgrade My Legacy System? 6 Questions to Ponder

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 upgrading any legacy system:

1. What percentage of your IT budget do you spend on legacy software maintenance or forced downtime because of a full or partial malfunction of your old system?

If the cost of keeping obsolete systems are depleting major resources, it may be time for a cost-effective, new platform.

2. Do your legacy systems offer compatibility with modern tech and recent IT innovations?

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

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

Or are you having trouble locating mainframe programmers to extend or fix your COBOL code? If so, your legacy system poses a potential threat to your company and should be modernized.

4. Is your legacy system capable of providing visibility into real-time data transactions and workflow patterns?

Because if you can’t leverage big data, you won’t have the kind of business intelligence you need to stay competitive. Adieu, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches correspond with a spike in customer complaints and support tickets?

With such a poor customer experience, you won’t bring in new customers. It’s time for a fresh system.

6. Is your legacy system SLOW?

It might be time to bite the bullet and make the change. The future is FAST. And it’s here.

How Can I Upgrade My Legacy System?

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

1. Replace Your Legacy Systems

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

2. Rebuild Your Legacy Systems

Rewrite the application components, so you can integrate new technology solutions, business intelligence, and big data capacity.

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. Refactor Your Legacy Systems

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

5. Rehost Your Legacy Systems

Utilize cloud computing with a data migration and application re-deployment to cloud infrastructure.

7. Encapsulate Your Outdated Systems Functions and Data

Incorporate your data and functions in the application, so that they may be accessed as services through an API.

8. Replatform Your Legacy Systems Application

Transfer your legacy systems application to a new run-time tool without dramatically altering the code or losing functionality.

How Wave Can Be of Assistance with Your Legacy System Upgrade in Colorado Springs?

Think it’s time for your legacy system modernization? Begin with Wave’s comprehensive system audit, so you can learn about its functionality and estimated lifespan.

In this fashion, you’ll know whether your organization can get around with a few legacy system enhancements or if you require a complete digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can handle the required upgrades or replacements: from adding features that improve the customer experience or optimizing processes with automation and Business Intelligence solutions.

We will also provide you with the sustained IT assistance you need to maximize your modernization investment.

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