1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as antiquated as the IRS’ existing systems (some date back 60 years!). Still, revamping your legacy system has been at the back of your mind A LOT lately.

Because it’s a security risk.

Because obsolete platforms are increasing maintenance expenses while generating even less capability every day.

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

We get it. You’re ready for a legacy system modernization.

But how can you gain the necessary buy-in from important stakeholders—whether that is your business partner or the entire boardroom?

Keep reading for your legacy system assessment, so you know when it’s the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are obsolete systems because they are based on outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually vital to everyday business processes, points out Gartner.

How essential 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 fuel public-sector infrastructure that we take for granted: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are ESSENTIAL.

Nevertheless, the modernization (including failed modernization efforts) and maintenance costs of keeping legacy systems are troublesome, totaling $35 trillion for businesses and governments worldwide since 2010.

It’s no surprise, then, that upgrading or rebuilding legacy systems with newer technology, whether it be SaaS technology solutions, cloud computing, or on-premise deployment is one of the most challenging issues CIOs in small and large companies encounter in their careers.

What Are the Benefits of Modernizing 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 expel?

Short answer, A LOT.

5 Key Advantages of Legacy System Modernization

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

1. Expedite Your Business Operations

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

It’s not out of the ordinary for organizations to spend over half of their IT budget on supporting legacy systems, for instance maintaining data hubs instead of carrying out a data migration to the cloud for managing support tickets.

CIOs that have implemented technological advancements or perhaps a full-blown digital transformation have reduced operational expenses in their businesses by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that the maintenance costs of legacy systems, applications, and infrastructure can eat up a large percentage of the company’s budget.

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

3. Enhance Your Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can result in unplanned downtime for your organizational operations.

If you’re an air carrier, IT systems outages can cause delays and even the cancellation of thousands of flights. It was a serious issue for airlines. Outdated systems are bad for business.

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

4. Minimize Your Security Risk While Staying Compliant

When your existing systems are so outdated that their manufacturer no longer supports 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 requires to avoid cybersecurity threats.

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

5. Make Your Business Operations More Agile for Better Scalability

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

Your old technology can hardly handle numerous data types—let alone the big data your IoT devices produce.

Dynamic CIOs realize that legacy software modernization is mandatory to refine IT system compatibility with new technological solutions.

That is indeed what the CIOs at LinkedIn did while the organization was growing into the world’s largest professional network, converting its software design 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 Consider Upgrading 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.

Here are some questions to keep in mind before any legacy system upgrade:

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 breakdown of your old system?

If your cost of maintaining outdated systems are eating up major resources, it might be time for a cost-effective, new system.

2. Do your legacy systems work with the latest 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 trouble locating mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system poses a serious risk to your firm and should be upgraded.

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

Because when you are unable to leverage big data, you will not have the kind of business intelligence you need to be competitive. Bye-bye, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes coincide with a spike in customer complaints and support tickets?

With such a poor customer experience, you won’t bring in new customers. It’s time for a modern system.

6. Is your legacy system SLOW?

It might be time to bite the bullet 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 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—along with all the speed, flexibility, and scalability your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign Your Legacy Technology

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

4. Refactor Your Legacy Systems

Retool your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Outdated Systems Data and Functions

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

8. Migrate Your Legacy Systems Application

Move your legacy systems program to a new run-time solution without extensively altering the code or losing functionality.

How Wave Can Be of Assistance with Your Legacy System Modernization in Tucson?

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

In this way, you’ll know whether you can get around with a few legacy system enhancements or if you require an extensive digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can carry out the needed upgrades or replacements: from adding features that improve the customer experience or optimizing processes with automation and Business Intelligence solutions.

We'll also offer you the continuous IT assistance you need to maximize your modernization investment.

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