1993 just called. It wants its IT systems back…

Perhaps your legacy systems are not as outdated as the IRS’ current systems (some date back 60 years!). But, modernizing your legacy technology has been at the back of your mind A LOT lately.

Because it is a cybersecurity risk.

Because obsolete platforms are racking up maintenance costs while providing even less capability every day.

Because you’re ready to take your business'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 primary stakeholders—whether that’s your business associate or the whole boardroom?

Keep reading for your legacy system evaluation, this will help you determine when it’s the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are outdated systems because they are derived from older technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally critical to daily business operations, 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 fuel public-sector infrastructure that we take for granted: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are ESSENTIAL.

However, the expenses of modernization (including botched modernization efforts) and maintenance of legacy systems are counterproductive, totaling $35 trillion for firms and governments globally since 2010.

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

What Are the Benefits 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 “obstacles” could legacy system modernization expel?

Short answer, A LOT.

5 Significant Advantages of Legacy System Modernization

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

1. Expedite Your Business Processes

A legacy system update, like the adoption of SaaS solutions, modern business intelligence software, or cloud computing, can enhance your workflow and other business operations.

It’s not unusual for companies to spend over half of their IT budget on supporting legacy systems, for example maintaining data centers rather than carrying out a data migration to the cloud for managing support tickets.

CIOs that have adopted technological improvements or even a full-blown digital transformation have cut operational expenditures in their organizations by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

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

In 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. Improve Your Business’s Customer Experience and Employee Retention

Legacy technology glitches and failures can lead to unexpected downtime for your business processes.

For airlines, IT systems outages can cause thousands of flights to be delayed or cancelled. It was a serious problem for airlines. Obsolete systems are bad for business.

Your staff unquestionably dislike the downtime and unsatisfactory user experience of the obsolete 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 image.

4. Lower Your Security Risk and Maintain Compliance

When your current systems are so old their manufacturer no longer supports them, they could pose a severe security risk to your company.

Often neglected and outdated systems, your legacy software, does not receive the security updates and patches it needs to avoid cybersecurity threats.

Major mishaps occur with legacy systems frequently. Remember Equifax?

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

A one-time integration to your legacy system here, a hotfix for your legacy technology there. In no time, your business is stumbling on a Frankenstein legacy system.

Your out-of-date technology can hardly handle multiple data formats—much less the massive amounts of data generated by your IoT devices.

Revolutionary CIOs realize that legacy software modernization is necessary to refine IT system compatibility with innovative technological platforms.

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

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

When Should I Consider Upgrading My Legacy System? 6 Questions to Contemplate

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

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

1. What percentage of your IT budget are you spending on legacy software maintenance or forced downtime because of a total or partial malfunction of your old system?

If your cost of operating older systems are draining considerable resources, it may be time for a new, cost-effective platform.

2. Do your legacy systems offer compatibility with modern technology and recent IT advancements?

Or is integration with a new SaaS solution or API a nightmare? Because of too much old technology or haphazard customization? If you answered “yes,” it’s time for a legacy system upgrade.

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

Or are you having a hard time locating mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system is a serious risk to your firm and should be modernized.

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

Because when you are unable to make the most of large data, you won’t have the kind of business intelligence you need to be competitive. Bye-bye, legacy systems.

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

With such a negative client experience, you will not attract new customers. It’s time for a modern system.

6. Is your legacy system SLOW?

It might be time to take the plunge and adapt. The future is moving at a breakneck pace. And it has arrived.

How Can I Upgrade 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—along with all the speed, agility, and scalability your CIOs have been promising with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Technology

Do like LinkedIn and a host of other leading organizations: redesign your legacy software architecture to enable greater agility and scalability.

4. Reconfigure Your Legacy Systems

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

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Functions and Data

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

8. Replatform Your Legacy Systems Application

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

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

Do you believe it’s time for your legacy system modernization? Begin with Wave’s extensive system audit, so you can get insights into its performance and estimated lifespan.

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

Whatever the circumstance may be for your legacy systems, Wave can perform the required upgrades or replacements: from adding features that improve the customer experience or simplifying processes with automation and Business Intelligence tools.

We will also provide you with the continuous IT assistance you need to see the greatest return on your modernization investment.

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