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!). However, modernizing your legacy technology has been at the back of your mind A LOT nowadays.

Because it is a security hazard.

Because obsolete systems are costing more to maintain while generating less and less functionality every day.

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

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

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

Keep reading for your legacy system evaluation, so you know when it is the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems seeing as they are derived from antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually essential 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 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.

But, the costs of modernization (including unsuccessful modernization efforts) and maintenance of legacy systems are cumbersome, totaling $35 trillion for enterprises and governments internationally since 2010.

It’s no surprise, then, that modernizing or replacing legacy systems with new technology, be it SaaS technology solutions, cloud computing, or on-site deployment is among the most challenging issues CIOs in small and large companies confront in their careers.

What Are the Benefits 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 Key Benefits of Modernizing Your Legacy Systems

If you choose a legacy system enhancements or an absolute digital transformation, upgrading your legacy systems can help you future-proof your firm:

1. Expedite Your Business Processes

A legacy system modernization, like the deployment of SaaS tools, modern business intelligence software, or cloud computing, can enhance your workflow and other business operations.

It is not out of the ordinary for companies to spend over half of their IT budget on supporting legacy systems, for example maintaining data centers instead of executing a data migration to the cloud for support ticket management.

CIOs that have applied technological advancements or perhaps a full-blown digital transformation have lowered production expenditures in their companies by up to 500%.

2. Reduce IT System Maintenance Costs

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

In fact, organizations in both 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. Improve Your Organization’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology might cause unplanned downtime for your business processes.

If you’re an air carrier, IT systems instabilities can result in thousands of flights to be delayed or cancelled. It was a major problem for carriers. Obsolete systems are bad for business.

Your employees unquestionably loathe the downtime and unsatisfactory user experience of the older technology too. And when the tech in their hands has seen more advancements in the last decade than your IT systems—it’s time to upgrade. For your image.

4. Lower Your Security Risk and Maintain Compliance

If your existing systems are so antiquated that their provider no longer services them, they could constitute a serious security risk to your business.

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

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

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

A one-off integration to your legacy software here, a hotfix for your legacy technology there. Before you know it, your organization is clunking along on a Frankenstein-style legacy system.

Your out-of-date technology can hardly handle multiple data formats—let alone the enormous amounts of data produced by your IoT devices.

Innovative CIOs understand that legacy software modernization is necessary to refine IT system compatibility with innovative technology platforms.

That is indeed what the CIOs at LinkedIn did as the company was developing into the largest global professional network, moving its software design from a REST API or an event-driven architecture.

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

When Should I Upgrade My Legacy System? 6 Questions to Contemplate

Technology, architecture, and functionality are 3 major considerations for CIOs when deciding if it’s time for a legacy technology upgrade.

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

1. How much of your IT budget do you spend on legacy software maintenance or forced downtime as a result of a total or partial breakdown of your out-of-date system?

If the cost of maintaining outdated technology is eating up important resources, it might be time for a cost-effective, new solution.

2. Do your legacy systems work with the latest technology and recent IT breakthroughs?

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

3. Has the vendor that originally designed your legacy system folded?

Or are you having a hard time locating mainframe programmers to extend or fix your COBOL code? If this is the case, your legacy system poses a potential risk to your business and should be replaced.

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

Because if you are unable to make the most of big data, you won’t have the business insight you need to be competitive. Goodbye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches 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 bite the bullet and make the change. The future is moving at a breakneck 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—along with all the speed, agility, and versatility your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Systems

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

4. Refine Your Legacy Systems

Restructure your code to get rid of technical debt.

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

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

8. Replatform Your Legacy Systems Application

Move your legacy systems application to a new run-time tool without drastically altering the code or compromising functionality.

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

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

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

Whatever the circumstance may be for your legacy systems, Wave can carry out the necessary modifications or replacements: from adding functionality that improves the user experience or streamlining processes with automation and Business Intelligence tools.

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

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