1993 just called. It wants its IT systems back…

Perhaps your legacy systems aren’t as outdated as the IRS’ existing systems (some date back 60 years!). However, modernizing your legacy technology has been at the back of your mind A LOT recently.

Because it is a security risk.

Because outdated platforms are increasing maintenance expenses while providing less and less functionality every day.

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

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

But how can you gain the support of important stakeholders—whether that’s your business partner or the entire boardroom?

Keep reading for your legacy system assessment, so you know when it is ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems since they are based on antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally vital to day-to-day 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 drive public-sector infrastructure that we take for granted: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are VITAL.

But, the expenses of modernization (including botched modernization efforts) and maintenance of legacy systems are counterproductive, totaling $35 trillion for businesses and governments globally since 2010.

It’s no wonder, however, that optimizing or substituting legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or local installation is one of the most challenging issues CIOs in small and large organizations face in their careers.

What Are the Benefits of Upgrading 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 eliminate?

In a nutshell, A LOT.

5 Key Advantages of Upgrading Your Legacy Systems

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

1. Expedite Your Business Processes

A legacy system update, like the deployment of SaaS solutions, new business intelligence software, or cloud computing, can refine your workflow and other business processes.

It is not out of the ordinary for companies to expend 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 support ticket management.

CIOs that have implemented technological improvements or even a comprehensive digital transformation have lowered operational expenses in their organizations by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

CIOs are well aware that the costs of maintaining legacy systems, infrastructure, and applications can account for a significant percentage of the organizational budget.

In fact, businesses in both private and public sectors spent $26.25 trillion in legacy IT systems operations and maintenance costs over the 11-year period from 2010 to 2021.

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

Glitches and malfunctions in legacy technology can lead to unplanned downtime for your organizational workflows.

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

Your employees certainly dislike the downtime and unsatisfactory user experience of the older technology as well. And once the technology in their pockets has seen more advancements in the last decade than your IT systems—it’s time to upgrade. For your image.

4. Reduce Your Security Risk While Staying Compliant

When your present systems are so antiquated that their provider no longer maintains them, they can pose a severe security risk to your organization.

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

Substantial failures happen with legacy systems regularly. Remember Equifax?

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

A single integration to your legacy software here, a hotfix for your legacy software there. In no time, your business is stumbling on a Frankenstein-style legacy system.

Your outdated systems can hardly handle numerous data formats—not to mention the big data your IoT devices produce.

Prospective CIOs understand that legacy software upgrading is mandatory to refine the compatibility of their IT systems with innovative technological platforms.

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

CIOs for SAP, Netflix, Unilever, Amazon, and the Federal Aviation Administration have all taken the same approach.

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

CIOs must evaluate three primary factors when assessing if it is time to modernize legacy technology: technology, architecture, and functionality.

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

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

If the cost of keeping obsolete systems are depleting major resources, it might be time for a cost-effective, new solution.

2. Do your legacy systems offer compatibility with the latest tech and recent IT innovations?

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 modernize your legacy system.

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

Or are you having trouble sourcing mainframe programmers who can fix or extend your COBOL code? If this is the case, your legacy system is a security risk to your business and should be upgraded.

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

Because when you can’t make the most of enormous 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 an increase 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 technology SLOW?

It may be time to jump in with both feet 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 solutions if you've determined that your legacy systems no longer fulfill your organizational needs?

1. Replace Your Legacy Systems

Out with the old, and in with the new—with all the speed, agility, and scalability your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Rearchitect Your Legacy Systems

Do as LinkedIn along with many other world-class firms have done: rearchitect your legacy software architecture to improve agility and scalability.

4. Reconfigure Your Legacy Systems

Retool 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 Data and Functions

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

8. Migrate Your Legacy Systems Application

Transfer your legacy systems application to a new run-time tool without extensively modifying the code or compromising functionality.

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

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

That way, you’ll know whether your business can get around with a few legacy system tweaks or if you require an extensive digital transformation now.

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

We will also offer you the sustained IT support you need to maximize your modernization investment.

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