1993 just called. It wants its IT systems back…

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

Because it is a security threat.

Because outdated platforms are racking up maintenance costs while providing even less capability every day.

Because you’re 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 can you gain the support of important stakeholders—whether that is your business partner or the whole boardroom?

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

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are antiquated systems because they are based on outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically critical to everyday business operations, 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 public-sector infrastructure that we take for granted: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are CRUCIAL.

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

It’s no surprise, then, that optimizing or replacing legacy systems with innovative technology, be it cloud computing, SaaS technology solutions, or local implementation 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 “obstacles” could legacy system modernization expel?

To put it briefly, A LOT.

5 Essential Advantages of Legacy System Modernization

Whether you go for legacy system enhancements or an absolute digital transformation, modernizing your legacy systems can assist you in future-proofing your business:

1. Expedite Your Business Operations

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

It’s not uncommon for businesses to waste over half of their IT budget on sustaining legacy systems, for instance maintaining data hubs instead of performing a data migration to the cloud for managing support tickets.

CIOs who’ve implemented technological improvements or even a full-blown 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 maintenance costs of legacy systems, applications, and infrastructure can eat up a significant percentage of the business’s budget.

As a matter of fact, companies 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

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

For airlines, IT systems outages can cause delays and even the cancellation of thousands of flights. It was a major concern for carriers. Obsolete systems are bad for business.

Your staff unquestionably resent the downtime and unsatisfactory user experience of the older technology too. And once the technology in their pockets has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your reputation.

4. Minimize Your Security Risk and Maintain Compliance

When your present systems are so old their manufacturer no longer maintains them, they could pose a major security risk to your company.

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

Major breakdowns happen with legacy systems frequently. Remember Equifax?

5. Increase the Agility of Your Business Operations for Greater Scalability

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

Your out-of-date technology are incapable of handling numerous data types—let alone the enormous amounts of data your IoT devices produce.

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

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

CIOs for Unilever, SAP, Netflix, 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 six questions to ask before upgrading any legacy system:

1. How much of your IT budget do you spend on maintenance costs for legacy software or forced downtime due to a complete or partial malfunction of your out-of-date system?

If your cost of keeping obsolete systems are draining major resources, it might be time for a cost-effective, new system.

2. Do your legacy systems support newer tech and recent IT innovations?

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 trouble finding mainframe programmers who can fix or extend your COBOL code? If this is the case, your legacy system introduces a security risk to your firm and should be replaced.

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

Because if you are unable to leverage large data, you will not have the business insight you need to be competitive. Adieu, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes correspond with an uptick in client complaints and support tickets?

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

6. Is your legacy technology SLOW?

It may be time to take the plunge and make the change. The future is approaching at a frenetic pace. And it has arrived.

How Can I Revamp 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—with all the speed, flexibility, and versatility your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Software

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

3. Redesign Your Legacy Systems

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

4. Refine Your Legacy Systems

Reconfigure 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. Encapsulate Your Outdated Systems Functions and Data

Encapsulate your data and functions into the solution, so you can access them as services via an API.

8. Migrate Your Legacy Systems Application

Move your legacy systems application to a new run-time platform without dramatically modifying the code or compromising functionality.

How Wave Can Assist with Your Legacy System Upgrade in Toledo?

Do you believe it’s time to modernize your legacy system? Begin with Wave’s thorough system audit, so you can get insights into its functionality and expected lifespan.

In this fashion, you’ll know whether your organization 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 carry out the needed upgrades or replacements: from adding attributes that improve the user experience or optimizing processes with automation and Business Intelligence solutions.

We'll also provide you with the sustained IT assistance you need to get the most out of your modernization investment.

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