1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as antiquated as the IRS’ existing systems (some are over 60 years old!). But, revamping your legacy system has been on your mind A LOT nowadays.

Because it’s a security hazard.

Because outdated platforms are costing more to maintain while delivering less and less efficiency every day.

Because you are ready to take your organization's digital transformation to the next level.

We get it. You’re ready for a legacy system modernization.

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

Continue reading for your legacy system evaluation, this will help you determine when it’s ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems because they are built from antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually essential to day-to-day 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 the infrastructure we take for granted in the public sector: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are CRUCIAL.

But, the modernization (including failed modernization efforts) and maintenance costs of keeping legacy systems are troublesome, totaling $35 trillion for firms and governments internationally since 2010.

It’s no surprise, however, that modernizing or rebuilding legacy systems with new technology, be it cloud computing, SaaS technology solutions, or local deployment is among the most difficult tasks CIOs in small and large businesses encounter in their careers.

What Are the Perks 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 “hurdles” could legacy system modernization expel?

In a nutshell, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

In the event that you opt for legacy system enhancements or a comprehensive digital transformation, upgrading your legacy systems can help you future-proof your firm:

1. Optimize Your Business Operations

A legacy system modernization, like the implementation of SaaS solutions, new business intelligence platforms, or cloud computing, can refine your workflow and other business operations.

It is not out of the ordinary for organizations to spend more than half of their IT budget on sustaining legacy systems, such as maintaining data centers instead of performing a data migration to the cloud for support ticket management.

CIOs that have adopted technological advancements or even a full-scale digital transformation have lowered production costs in their companies by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that the costs of maintaining legacy systems, infrastructure, and applications can eat up a significant percentage of the company’s budget.

Frankly, businesses 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. Enhance Your Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can lead to unforeseen downtime for your business workflows.

For airlines, IT systems faults can cause delays and even the cancellation of thousands of flights. It was a serious problem for airlines. Obsolete technology is bad for business.

Your employees unquestionably dislike the downtime and unsatisfactory user experience of the outdated technology too. And once the tech in their pockets has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your credibility.

4. Lower Your Security Risk and Maintain Compliance

If your present systems are so antiquated that their provider no longer services them, they can pose a major security risk to your company.

Your legacy software, which is frequently ignored and out of date, doesn’t receive the security updates and patches it requires to prevent cybersecurity attacks.

Big breakdowns happen with legacy systems all the time. Remember Equifax?

5. Make Your Business Processes More Agile for Greater Scalability

A single integration to your legacy software here, a hotfix for your legacy software there. Before you know it, your business is clunking along on a Frankenstein legacy system.

Your old technology can hardly handle various data formats—much less the big data your IoT devices generate.

Revolutionary CIOs know legacy software upgrading is essential to refine IT system compatibility with modern technology platforms.

That is indeed what the LinkedIn’s CIOs did as the organization was growing into the largest global professional network, transforming its system 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 Contemplate

Technology, architecture, and functionality are 3 major considerations for CIOs when deciding if it’s time for a legacy technology upgrade.

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

1. How much of your IT budget do you spend on maintenance costs for legacy software or forced downtime as a result of a full or partial breakdown of your old system?

If your cost of keeping outdated technology is eating up considerable resources, it might be time for a new, cost-effective platform.

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

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

3. Is the vendor who designed your legacy system no longer in business?

Or are you having difficulty sourcing mainframe programmers to fix or extend your COBOL code? If so, your legacy system poses a security risk to your firm and should be modernized.

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

Because when you can’t take advantage of large data, you won’t have the business insight you need to be competitive. Adieu, legacy systems.

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

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

6. Is your legacy technology SLOW?

It may be time to jump in with both feet and make the change. The future is approaching at a frenetic pace. And it’s here.

How Can I Revamp My Legacy System?

If you’ve decided your legacy systems are no longer meeting your business needs, what are your modernization options?

1. Replace Your Legacy Systems

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

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Technology

Do as LinkedIn along with many other world-class firms have done: rearchitect your legacy software architecture to improve agility and scalability.

4. Refactor Your Legacy Systems

Restructure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

Encompass your functions and data in the software, so that they may be accessed as services via an API.

8. Replatform Your Legacy Systems Application

Migrate your legacy systems application to a new run-time solution without dramatically altering the code or sacrificing functionality.

How Wave Can Be of Assistance with Your Legacy System Modernization in Raleigh?

Do you believe it’s time for your legacy system modernization? Start with Wave’s extensive system audit, so you can learn about its performance and estimated lifespan.

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

Whatever the situation may be for your legacy systems, Wave can perform the needed modifications or replacements: from adding features that improve the user experience or expediting processes with automation and Business Intelligence solutions.

We'll also give you the ongoing IT assistance you need to see the greatest return on your modernization investment.

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