1993 just called. It wants its IT systems back…

Your legacy systems probably are not as old as the IRS’ present systems (some are over 60 years old!). Still, modernizing your legacy system has been at the back of your mind A LOT lately.

Because it’s a security risk.

Because outdated systems are costing more to maintain while delivering less and less functionality every day.

Because you are 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 necessary buy-in from important stakeholders—whether that’s your business partner or the whole boardroom?

Keep reading for your legacy system assessment, this will help you determine when it is time to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are obsolete systems because they are based on outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically critical to day-to-day business operations,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 the infrastructure we take for granted in the public sector: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are VITAL.

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

It’s no surprise, however, that upgrading or substituting legacy systems with innovative technology, whether it be SaaS technology solutions, cloud computing, or on-site installation is one of the most challenging issues CIOs in small and large companies confront in their careers.

What Are the Perks 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 remove?

Short answer, A LOT.

5 Essential Benefits of Upgrading Your Legacy Systems

In the event that you choose a legacy system enhancements or an absolute digital transformation, your legacy system modernization can help you future-proof your organization:

1. Optimize Your Business Operations

A legacy system modernization, such as the deployment of SaaS platforms, modern business intelligence platforms, or cloud computing, can improve efficiencies in your workflow and other business operations.

It’s not unusual for businesses to waste over half of their IT budget on backing legacy systems, such as maintaining data centers rather than executing a data migration to the cloud for support ticket management.

CIOs that have adopted technological upgrades or even a comprehensive digital transformation have lowered production expenditures in their companies 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 account for a substantial percentage of the organizational budget.

Frankly, organizations 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 Organization’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can lead to unforeseen downtime for your organizational processes.

For airlines, IT systems instabilities can cause thousands of flights to be delayed or cancelled. It was a real concern for airlines. Outdated systems are bad for business.

Your staff unquestionably resent the downtime and poor user experience of the outdated technology too. And once the tech in their pockets has advanced faster in the last decade than your IT systems—it’s time to upgrade. For your credibility.

4. Lower Your Security Risk While Maintaining Compliance

When your existing systems are so outdated that their original vendor no longer maintains them, they can constitute a serious security risk to your organization.

Often neglected and outdated systems, your legacy software, doesn’t receive the security updates and patches it requires to prevent cybersecurity threats.

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

5. Make Your Business Processes More Agile for Greater Scalability

A one-off integration to your legacy system here, a hotfix for your legacy system there. In no time, your organization is stumbling on a Frankenstein-style legacy system.

Your old technology are incapable of handling numerous data formats—not to mention the big data generated by your IoT devices.

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

That is exactly what the CIOs at LinkedIn did when the firm was developing into the world’s largest professional network, moving its software design from a REST API or an event-driven architecture.

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

When Should I Consider Upgrading 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 six questions to keep in mind before upgrading any legacy system:

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 breakdown of your out-of-date system?

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

2. Do your legacy systems work with the latest tech and recent IT advancements?

Or is it a pain to integrate with a new SaaS service or API? Because of outdated technology or ad-hoc customization? If you answered “yes,” it’s time to modernize your legacy system.

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

Or are you having a hard time locating mainframe programmers who can extend or fix your COBOL code? If so, your legacy system introduces a security risk to your company and should be replaced.

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

Because when you can’t make the most of big data, you will not have the kind of business intelligence you need to stay competitive. Adieu, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes correspond with an uptick in client support tickets and complaints?

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

6. Is your legacy technology SLOW?

It might be time to jump in with both feet and make a change. The future is FAST. 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—and all the speed, flexibility, and expandability your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

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

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. Refine Your Legacy Systems

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

5. Rehost Your Legacy Systems

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

7. Digest Your Outdated Systems Functions and Data

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

8. Migrate Your Legacy Systems Application

Move your legacy systems application to a new run-time platform without dramatically modifying the code or losing functionality.

How Wave Can Assist with Your Legacy System Modernization in Orlando?

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

That way, you’ll know whether your company can get by 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 perform the needed modifications or replacements: from adding features that improve the customer experience or expediting processes with automation and Business Intelligence platforms.

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

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