1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as antiquated as the IRS’ existing systems (some date back 60 years!). Still, upgrading your legacy system has been at the back of your mind A LOT recently.

Because it poses a security threat.

Because antiquated systems are costing more to maintain while providing even less efficiency every day.

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

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

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

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

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems since they are derived from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically essential to everyday business processes, 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 power public-sector infrastructure that we take for granted: wastewater treatment plants, power grids, telecommunications services, 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 enterprises and governments globally since 2010.

It’s no surprise, however, that modernizing or substituting legacy systems with innovative technology, whether it be cloud computing, SaaS technology solutions, or local implementation is among the most difficult tasks CIOs in small and large organizations 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 “hurdles” could the upgrading of legacy systems remove?

To put it briefly, A LOT.

5 Significant Benefits of Legacy System Modernization

If you opt for legacy system enhancements or a complete digital transformation, modernizing your legacy systems can help you future-proof your organization:

1. Expedite Your Business Processes

A legacy system modernization, such as the deployment of SaaS solutions, new business intelligence software, or cloud computing, can enhance your workflow and other business operations.

It is not uncommon for companies to waste over half of their IT budget on backing legacy systems, such as maintaining data hubs instead of performing a data migration to the cloud for managing support tickets.

CIOs that have implemented technological improvements or perhaps a full-scale digital transformation have reduced production expenditures in their organizations by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know the costs of maintaining legacy systems, infrastructure, and applications can account for a substantial percentage of the business’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 Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can lead to unexpected downtime for your business processes.

For airlines, IT systems instabilities can result in thousands of flights to be delayed or cancelled. It was a real problem for carriers. Obsolete technology is bad for business.

Your employees certainly loathe the downtime and awful user experience of the obsolete technology as well. And when the tech in their hands has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your reputation.

4. Lower Your Security Risk While Maintaining Compliance

When your current systems are so old their provider no longer services them, they could constitute a major security risk to your business.

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

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

5. Make Your Business Operations More Agile for Greater Scalability

A one-time integration to your legacy software here, a hotfix for your legacy technology there. Before long, your firm is clunking along on a Frankenstein-style legacy system.

Your out-of-date systems barely handle various data types—let alone the big data your IoT devices generate.

Prospective CIOs realize that legacy software upgrading is essential to refine the compatibility of their IT systems with innovative technological tools.

That’s exactly what the LinkedIn’s CIOs did as the organization was scaling into the world’s largest 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 all taken the same approach.

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

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

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

1. How much of your IT budget are you spending on maintenance costs for legacy software or forced downtime as a result of a complete or partial failure of your outdated system?

If your cost of keeping obsolete technology is draining important resources, it might be time for a more cost-effective system.

2. Do your legacy systems work with newer technology and recent IT advancements?

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 for a legacy system upgrade.

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

Or are you having a hard time sourcing mainframe programmers to extend or fix your COBOL code? If so, your legacy system introduces a serious risk to your firm and should be replaced.

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

Because if you can’t take advantage of large data, you will not have the business insight you need to be competitive. Bye-bye, legacy systems.

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

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

6. Is your legacy technology SLOW?

It might be time to jump in with both feet and make a change. The future is approaching at a frenetic pace. And it has arrived.

How Can I Modernize 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, agility, and versatility your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign 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. Refactor Your Legacy Systems

Retool your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Data and Functions

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

8. Migrate Your Legacy Systems Application

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

How Wave Can Help with Your Legacy System Modernization in Virginia Beach?

Think it’s time for your legacy system modernization? Start with Wave’s comprehensive system audit, so you can get insights into its performance and predicted lifespan.

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

Whatever the situation may be for your legacy systems, Wave can handle the required modifications or replacements: from adding features that improve the customer experience or optimizing processes with automation and Business Intelligence platforms.

We'll also give you the ongoing IT support you need to get the most out of your modernization investment.

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