1993 just called. It wants its IT systems back…

Your legacy systems probably aren’t as old as the IRS’ current systems (some are over 60 years old!). Still, upgrading your legacy system has been on your mind A LOT recently.

Because it poses a security hazard.

Because outdated platforms are increasing maintenance expenses while delivering less and less efficiency every day.

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

We get it. You are ready for a legacy system modernization.

But how can you gain the necessary buy-in from key stakeholders—whether that is your business associate or the whole boardroom?

Keep reading for your legacy system evaluation, 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 antiquated systems because they are based on older technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally 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 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 ESSENTIAL.

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

It’s no surprise, then, that upgrading or replacing legacy systems with newer technology, whether SaaS technology solutions, cloud computing, or on-premise implementation is among the most difficult tasks CIOs in small and large organizations confront 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 legacy system modernization eliminate?

In a nutshell, A LOT.

5 Key Benefits of Upgrading Your Legacy Systems

Whether you go for legacy system enhancements or a complete digital transformation, your legacy system modernization can assist you in future-proofing your organization:

1. Streamline Your Business Operations

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

It’s not unusual for businesses to expend more than half of their IT budget on supporting legacy systems, for example maintaining data hubs rather than executing a data migration to the cloud for managing support tickets.

CIOs who’ve implemented technological advancements or perhaps a comprehensive digital transformation have lowered production expenses in their businesses by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that the costs of maintaining legacy systems, infrastructure, and applications can demand a large percentage of the business’s budget.

As a matter of fact, businesses in the 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. Improve Your Business’s Customer Experience and Employee Retention

Legacy technology glitches and failures can result in unplanned downtime for your business operations.

For airlines, IT systems outages can result in thousands of flights to be delayed or cancelled. It was a serious problem for airlines. Outdated technology is bad for business.

Your staff undoubtedly dislike the downtime and awful user experience of the obsolete technology as well. And once the tech in their pockets has seen more advancements in the last decade than your IT systems—it’s time for an upgrade. For your reputation.

4. Lower Your Security Risk and Maintain Compliance

When your present systems are so outdated that their manufacturer no longer services them, they can pose a severe security risk to your organization.

Your legacy software, which is frequently ignored and out of date, doesn’t receive the security updates and patches it requires to avoid cybersecurity breaches.

Major failures occur with legacy systems frequently. Remember Equifax?

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

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

Your outdated systems can hardly handle numerous data types—let alone the big data your IoT devices generate.

Forward-looking CIOs know legacy software modernization is essential to enhance the compatibility of their IT systems with new technological solutions.

That is indeed what the LinkedIn’s CIOs did while the organization 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 also followed suit.

When Should I Replace 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.

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

1. How much of your IT budget is spent on legacy software maintenance or forced downtime because of a full or partial failure of your old system?

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

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

Or is it a pain to integrate with a new SaaS service or API? Because of obsolete technology or haphazard customization? If you answered “yes,” it is time to upgrade your legacy system.

3. Is your legacy system's original developer no longer in business?

Or are you having trouble finding mainframe programmers who can extend or fix your COBOL code? If so, your legacy system poses a serious risk to your business and should be modernized.

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

Because if you can’t leverage big data, you won’t have the kind of business intelligence you need to stay competitive. Bye-bye, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system 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 may be time to take the plunge and adapt. The future is FAST. 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 system—and all the speed, efficiency, and scalability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

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

3. Redesign Your Legacy Technology

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

Restructure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

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

8. Migrate Your Legacy Systems Application

Migrate your legacy systems program to a new run-time tool without extensively modifying the code or sacrificing functionality.

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

Do you believe it’s time for your legacy system modernization? Begin with Wave’s comprehensive system audit, so you can learn about its performance and estimated lifespan.

That way, you’ll know whether your company can cope 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 necessary upgrades or replacements: from adding functionality that improves the user experience or expediting processes with automation and Business Intelligence platforms.

We will also offer you the continuous 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.