1993 just called. It wants its IT systems back…

Perhaps your legacy systems aren’t as old as the IRS’ current systems (some date back 60 years!). However, revamping your legacy technology has been at the back of your mind A LOT lately.

Because it poses a cybersecurity hazard.

Because antiquated systems are costing more to maintain while delivering less and less capability every day.

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

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 partner or the entire boardroom?

Continue reading for your legacy system evaluation, this will help you determine when it is ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems because they are derived from older technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally essential to daily business operations, 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 the infrastructure we take for granted in the public sector: power grids, telecommunications services, wastewater treatment plants, 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 businesses and governments internationally since 2010.

It’s no surprise, then, that upgrading or replacing legacy systems with innovative technology, whether it be SaaS technology solutions, cloud computing, or local installation is among the most difficult tasks CIOs in small and large companies face in their careers.

What Are the Advantages 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 “barriers” could the upgrading of legacy systems expel?

To put it briefly, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

If you choose a legacy system enhancements or an absolute digital transformation, upgrading your legacy systems can assist you in future-proofing your organization:

1. Optimize Your Business Processes

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

It’s not uncommon for businesses to waste over half of their IT budget on backing 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 cut operational expenses in their organizations by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

CIOs well know legacy system, application, and infrastructure maintenance can account for a significant percentage of the organization’s budget.

In 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 Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can result in unexpected downtime for your organizational processes.

If you’re an air carrier, IT systems outages can cause thousands of flights to be delayed or cancelled. It was a serious problem for carriers. Outdated systems are bad for business.

Your personnel certainly dislike the downtime and awful user experience of the outdated technology too. And when the technology in their hands has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your reputation.

4. Minimize Your Security Risk and Maintain Compliance

If your present systems are so antiquated that their manufacturer no longer supports them, they can constitute a major security risk to your company.

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

Major mishaps occur with legacy systems frequently. Remember Equifax?

5. Make Your Business Processes More Agile for Better Scalability

A single integration to your legacy system here, a hotfix for your legacy technology there. Before you know it, your company is stumbling on a Frankenstein legacy system.

Your outdated technology are incapable of handling various data types—not to mention the enormous amounts of data generated by your IoT devices.

Revolutionary CIOs realize that legacy software modernization is mandatory to improve the compatibility of their IT systems with innovative technology platforms.

That’s exactly what the LinkedIn’s CIOs did while the organization was growing into the largest global professional network, moving its software architecture from a REST API or an event-driven architecture.

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

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

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

Below are some questions to keep in mind before upgrading any legacy system:

1. What percentage of your IT budget do you spend on maintenance costs for legacy software or forced downtime due to a full or partial failure of your out-of-date system?

If your cost of operating obsolete systems are eating up important resources, it may be time for a new, cost-effective platform.

2. Do your legacy systems support modern technology 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 upgrade your legacy system.

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

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

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

Because if you can’t make the most of large data, you will not have the business insight you need to be competitive. Goodbye, legacy systems.

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

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

6. Is your legacy system SLOW?

It might be time to bite the bullet and make a change. The future is moving at a breakneck pace. And it’s here.

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, agility, and expandability your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

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

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 software, so that they may be accessed as services via an API.

8. Replatform Your Legacy Systems Application

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

How Wave Can Help with Your Legacy System Modernization in Cincinnati?

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

In this fashion, you’ll know whether you can cope with a few legacy system tweaks or if you require a comprehensive digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can handle the necessary upgrades or replacements: from adding features that improve the customer experience or simplifying workflows with automation and Business Intelligence solutions.

We'll also give you the continuous 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.