1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as old as the IRS’ existing systems (some date back 60 years!). But, revamping your legacy technology has been at the back of your mind A LOT nowadays.

Because it presents a security threat.

Because outdated systems are racking up maintenance costs while delivering even less capability every day.

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

Keep reading for your legacy system checklist, 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 Legacy systems are outdated systems since they are built from antiquated technology; however, legacy systems, despite their age, limited functionality, and security risk, are typically critical to everyday 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 power public-sector infrastructure that we take for granted: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are VITAL.

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

It’s no surprise, however, that upgrading or replacing legacy systems with new technology, whether cloud computing, SaaS technology solutions, or local installation is among the most challenging issues CIOs in small and large firms face 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 the modernization of your legacy systems expel?

In a nutshell, A LOT.

5 Significant Advantages of Upgrading Your Legacy Systems

If you opt for legacy system enhancements or a complete digital transformation, modernizing your legacy systems can assist you in future-proofing your business:

1. Expedite Your Business Processes

A legacy system modernization, such as the implementation of SaaS tools, modern business intelligence tools, or cloud computing, can refine your workflow and other business operations.

It is not uncommon for companies to waste more than half of their IT budget on backing legacy systems, for instance maintaining data centers instead of performing a data migration to the cloud for managing support tickets.

CIOs that have adopted technological improvements or even a comprehensive digital transformation have cut production costs in their companies 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.

In fact, businesses in the 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. Improve Your Organization’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can result in unplanned downtime for your business processes.

If you’re an air carrier, IT systems outages can cause delays and even the cancellation of thousands of flights. It was a major concern for airlines. Obsolete technology is bad for business.

Your employees undoubtedly loathe the downtime and awful user experience of the outdated technology as well. And once the tech in their hands has advanced faster in the last decade than your IT systems—it’s time to upgrade. For your reputation.

4. Reduce Your Security Risk and Maintain Compliance

If your current systems are so outdated that their manufacturer no longer services them, they can constitute a severe security risk to your organization.

Frequently ignored and out of date, your legacy software, does not receive the security updates and patches it requires to avoid cybersecurity breaches.

Substantial failures occur with legacy systems all the time. Remember Equifax?

5. Make Your Business Processes More Agile for Better Scalability

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

Your outdated systems can hardly handle multiple data formats—not to mention the enormous amounts of data produced by your IoT devices.

Prospective CIOs understand that legacy software upgrading is necessary to refine IT system compatibility with innovative technology solutions.

That is indeed what the CIOs at LinkedIn did when the organization was developing into the world’s premier professional network, transforming its system design 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 Replacing My Legacy System? 6 Questions to Ask

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

Below are six things to consider before any legacy system modernization:

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

If the cost of maintaining outdated systems are depleting important resources, it might be time for a more cost-effective system.

2. Do your legacy systems work with newer tech 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 is time for a legacy system upgrade.

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

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

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

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

5. Do glitches, failures, and forced downtimes with your old system coincide with an uptick in client support tickets and complaints?

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

6. Is your legacy system SLOW?

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

How Can I Upgrade 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—with all the speed, flexibility, and scalability 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 integrate modern technology solutions, big data capacity, and business intelligence.

3. Rearchitect 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

Restructure your code, so you can kick technical debt to the curb.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

Encapsulate your data and functions into the solution, so that they may be accessed as services through an API.

8. Migrate Your Legacy Systems Application

Migrate your legacy systems application to a new run-time platform without extensively altering the code or losing functionality.

How Wave Can Be of Assistance with Your Legacy System Upgrade in Durham?

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

That way, you’ll know whether your business can cope with a few legacy system modifications or if you need an extensive digital transformation now.

Whatever the situation may be for your legacy systems, Wave can handle the necessary modifications or replacements: from adding attributes that improve the user experience or optimizing processes with automation and Business Intelligence platforms.

We will also offer you the ongoing IT support you need to see the greatest return on your modernization investment.

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