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!). But, upgrading your legacy technology has been on your mind A LOT recently.

Because it presents a security hazard.

Because antiquated platforms are increasing maintenance expenses while delivering 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 can you gain the support of primary stakeholders—whether that is your business associate or the whole boardroom?

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

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems since they are built from older technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally vital to day-to-day business workflows, points out Gartner.

How relevant 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: wastewater treatment plants, power grids, telecommunications services, 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, however, that optimizing or rebuilding legacy systems with new technology, be it SaaS technology solutions, cloud computing, or on-premise deployment is one of the most difficult tasks CIOs in small and large businesses face 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 “obstacles” could the upgrading of legacy systems expel?

In a nutshell, A LOT.

5 Key Advantages of Upgrading Your Legacy Systems

If you choose a legacy system enhancements or a complete digital transformation, your legacy system modernization can assist you in future-proofing your firm:

1. Expedite Your Business Processes

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

It’s not uncommon for organizations to spend more than half of their IT budget on supporting legacy systems, for example maintaining data hubs rather than executing a data migration to the cloud for support ticket management.

CIOs who’ve applied technological advancements or perhaps a full-blown digital transformation have reduced operational costs in their companies by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know the costs of maintaining legacy systems, infrastructure, and applications can demand a substantial percentage of the organizational budget.

As a matter of fact, businesses 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. Enhance Your Organization’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 cause delays and even the cancellation of thousands of flights. It was a real problem for carriers. Outdated systems are bad for business.

Your staff certainly dislike the downtime and unsatisfactory user experience of the outdated technology too. And when the technology in their pockets has advanced faster in the last decade than your IT systems—it’s time to upgrade. For your credibility.

4. Reduce Your Security Risk and Stay Compliant

If your current systems are so outdated that their manufacturer no longer supports them, they could pose a severe 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 requires to block cybersecurity threats.

Major breakdowns occur with legacy systems regularly. Remember Equifax?

5. Make Your Business Operations More Agile for Better Scalability

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

Your obsolete systems barely handle multiple data types—much less the enormous amounts of data generated by your IoT devices.

Forward-thinking CIOs realize that legacy software modernization is necessary to improve IT system compatibility with innovative technological solutions.

That’s exactly what the LinkedIn’s CIOs did when the firm was developing into the world’s largest professional network, moving its software architecture from a REST API or an event-driven architecture.

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

When Should I Upgrade 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 questions to ask before any legacy system modernization:

1. How much of your IT budget do you spend on maintenance costs for legacy software or forced downtime because of a total or partial failure of your out-of-date system?

If your cost of keeping obsolete technology is depleting considerable resources, it might be time for a new, cost-effective system.

2. Do your legacy systems work with modern tech and recent IT advancements?

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

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

Or are you having difficulty sourcing mainframe programmers to fix or extend your COBOL code? If this is the case, your legacy system introduces a security risk to your business and should be upgraded.

4. Is your legacy system capable of providing 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. Adieu, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes coincide 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 system SLOW?

It may be time to jump in with both feet and adapt. 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—and all the speed, flexibility, and versatility your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

Rewrite the legacy system, so you can integrate new tech solutions, big data capacity, and business intelligence.

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

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

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Data and Functions

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

8. Replatform Your Legacy Systems Application

Migrate your legacy systems program to a new run-time platform without extensively modifying the code or compromising functionality.

How Wave Can Assist with Your Legacy System Modernization in Indianapolis?

Do you believe it’s time for your legacy system modernization? Start 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 around with a few legacy system enhancements or if you need an extensive digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can perform the required modifications or replacements: from adding functionality that improves the customer experience or optimizing processes with automation and Business Intelligence platforms.

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

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