1993 just called. It wants its IT systems back…

Your legacy systems probably are not as antiquated as the IRS’ current systems (some date back 60 years!). But, upgrading your legacy technology has been on your mind A LOT nowadays.

Because it presents a cybersecurity risk.

Because antiquated systems are racking up maintenance costs while generating less and less capability every day.

Because you’re ready to take your company'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 primary stakeholders—whether that is 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 Legacy systems are outdated systems because they are derived from outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually critical to daily business processes, points out Gartner.

How essential 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 power the infrastructure we take for granted in the public sector: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are VITAL.

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

It’s no surprise, however, that modernizing or substituting legacy systems with new technology, whether it be SaaS technology solutions, cloud computing, or local implementation is among the most challenging issues CIOs in small and large organizations 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 “barriers” could legacy system modernization expel?

Short answer, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

In the event that you opt for legacy system enhancements or a comprehensive digital transformation, your legacy system modernization can assist you in future-proofing your business:

1. Streamline Your Business Processes

A legacy system modernization, like the adoption of SaaS platforms, new business intelligence platforms, or cloud computing, can enhance your workflow and other business operations.

It’s not unusual for businesses to expend more than half of their IT budget on supporting legacy systems, for example maintaining data hubs instead of performing a data migration to the cloud for support ticket management.

CIOs that have applied technological improvements or perhaps a comprehensive digital transformation have cut production expenses in their businesses by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

CIOs well know the maintenance costs of legacy systems, applications, and infrastructure can account for a substantial percentage of the business’s budget.

Frankly, 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. Enhance Your Organization’s Customer Experience and Employee Retention

Legacy technology glitches and failures can result in unexpected downtime for your organizational operations.

For airlines, 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 staff certainly dislike the downtime and unsatisfactory user experience of the outdated technology as well. And once the tech in their pockets has advanced faster 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

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

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

Big 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 system here, a hotfix for your legacy technology there. Before you know it, your firm is clunking along on a Frankenstein-style legacy system.

Your old systems barely handle various data types—let alone the massive amounts of data produced by your IoT devices.

Dynamic CIOs realize that legacy software modernization is necessary to enhance IT system compatibility with new technology platforms.

That is exactly what the CIOs at LinkedIn did while the firm was developing into the world’s premier professional network, moving its software design 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 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 six questions to ask before upgrading any legacy system:

1. What percentage of your IT budget is spent on maintenance costs for legacy software or forced downtime as a result of a total or partial breakdown of your outdated system?

If your cost of keeping obsolete technology is eating up important resources, it might be time for a new, cost-effective platform.

2. Do your legacy systems offer compatibility with the latest technology and recent IT advancements?

Or is integration with a new SaaS solution or API a nightmare? Because of too much old technology or ad-hoc 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 a hard time finding mainframe programmers to fix or extend your COBOL code? If so, your legacy system introduces a security risk to your firm and should be upgraded.

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

Because if you are unable to leverage large data, you won’t have the kind of business intelligence you need to be competitive. Goodbye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches correspond with a spike in customer complaints and support tickets?

You won’t bring in any new business with such a bad customer experience. It’s time for a new system.

6. Is your legacy technology SLOW?

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

How Can I Revamp 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 system—and all the speed, flexibility, and versatility your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign Your Legacy Systems

Redesign your legacy software architecture to provide more agility and scalability, as LinkedIn and a slew of other outstanding firms have done.

4. Refine Your Legacy Systems

Reconfigure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Legacy Systems Data and Functions

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

8. Replatform Your Legacy Systems Application

Move your legacy systems program to a new run-time platform without drastically modifying the code or sacrificing functionality.

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

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

That way, you’ll know whether your organization can get around with a few legacy system enhancements or if you require a comprehensive digital transformation now.

Whatever the situation may be for your legacy systems, Wave can handle the required modifications or replacements: from adding features that improve the customer experience or expediting processes with automation and Business Intelligence solutions.

We will also give you the continuous IT assistance 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.