1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as outdated as the IRS’ current systems (some date back 60 years!). Still, revamping your legacy system has been on your mind A LOT nowadays.

Because it is a security hazard.

Because obsolete systems are costing more to maintain while providing less and less efficiency every day.

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

We get it. You are ready for a legacy system modernization.

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

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

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are outdated systems since they are built from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally vital to everyday business processes, points out Gartner.

How important 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 the infrastructure we take for granted in the public sector: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are CRUCIAL.

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

It’s no wonder, then, that upgrading or substituting legacy systems with new technology, be it cloud computing, SaaS technology solutions, or on-premise deployment is one of the most challenging issues CIOs in small and large organizations confront in their careers.

What Are the Advantages of Upgrading 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 remove?

In a nutshell, A LOT.

5 Essential Benefits of Modernizing Your Legacy Systems

In the event that you go for legacy system enhancements or a complete digital transformation, your legacy system modernization can help you future-proof your organization:

1. Optimize Your Business Operations

A legacy system upgrade, like the deployment of SaaS platforms, new business intelligence platforms, or cloud computing, can enhance your workflow and other business processes.

It is not out of the ordinary for businesses to expend more than half of their IT budget on backing legacy systems, for instance maintaining data hubs rather than performing a data migration to the cloud for support ticket management.

CIOs who’ve adopted technological improvements or even a full-scale digital transformation have reduced operational expenditures in their companies 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 account for a large percentage of the company’s budget.

In fact, organizations in the public and private sectors spent $26.25 trillion in legacy IT systems operations and maintenance costs over the 11 years spanning 2010 to 2021.

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

Legacy technology glitches and failures can result in unplanned 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 real problem for carriers. Obsolete systems are bad for business.

Your employees undoubtedly dislike the downtime and awful user experience of the obsolete technology as well. And once the technology in their hands has seen more advancements in the last decade than your IT systems—it’s time for an upgrade. For your credibility.

4. Lower Your Security Risk and Maintain Compliance

When your present systems are so antiquated that their original vendor no longer services them, they could pose a serious security risk to your company.

Frequently ignored and out of date, your legacy software, doesn’t receive the security patches and updates it needs to block cybersecurity attacks.

Substantial mishaps happen with legacy systems regularly. Remember Equifax?

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

A one-off integration to your legacy system here, a hotfix for your legacy software there. Before long, your organization is stumbling on a Frankenstein-style legacy system.

Your out-of-date technology barely handle numerous data formats—let alone the enormous amounts of data your IoT devices generate.

Forward-looking CIOs realize that legacy software modernization is mandatory to enhance IT system compatibility with modern technology tools.

That is indeed what the LinkedIn’s CIOs did as the organization was scaling into the world’s largest professional network, moving its system design from a REST API or an event-driven architecture.

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

When Should I Consider Replacing My Legacy System? 6 Questions to Ask

When contemplating whether or not to modernize legacy technology, CIOs must assess three primary factors: technology, architecture, and functionality.

Below are a few questions to keep in mind before any legacy system modernization:

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

If your cost of operating obsolete systems are draining considerable resources, it might be time for a more cost-effective platform.

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

Or is it a pain to integrate with a new SaaS service 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 a hard time sourcing mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system introduces a security risk to your company and should be upgraded.

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

Because when you can’t make the most of large data, you won’t have the kind of business intelligence you need to be competitive. Goodbye, 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 fresh system.

6. Is your legacy technology SLOW?

It might be time to bite the bullet and make a change. The future is approaching at a frenetic pace. And it has arrived.

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, efficiency, and scalability your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Systems

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

4. Refine Your Legacy Systems

Reconfigure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Outdated Systems Functions and Data

Encompass your data and functions in the software, so you can access them as services through an API.

8. Migrate Your Legacy Systems Application

Move your legacy systems program to a new run-time tool without dramatically altering the code or compromising functionality.

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

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

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

Whatever the case proves to be for your legacy systems, Wave can perform the needed upgrades or replacements: from adding features that improve the user experience or simplifying workflows with automation and Business Intelligence platforms.

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

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