1993 just called. It wants its IT systems back…

Your legacy systems probably aren’t as outdated as the IRS’ existing systems (some are over 60 years old!). But, modernizing your legacy system has been on your mind A LOT lately.

Because it poses a cybersecurity risk.

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

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

We understand. You’re ready for a legacy system modernization.

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

Keep reading for your legacy system evaluation, so you know when it’s 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 Oftentimes, legacy systems are obsolete systems because they are based on outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually critical to everyday business operations, points out Gartner.

How important 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 drive 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 corporations and governments worldwide since 2010.

It’s no surprise, then, that optimizing or substituting legacy systems with newer technology, whether it be cloud computing, SaaS technology solutions, or local deployment is among the greatest challenges CIOs in small and large organizations encounter 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 the upgrading of legacy systems remove?

Short answer, A LOT.

5 Key Advantages of Legacy System Modernization

In the event that you opt for legacy system enhancements or a complete digital transformation, upgrading your legacy systems can assist you in future-proofing your firm:

1. Optimize Your Business Operations

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

It is not out of the ordinary for organizations to waste more than half of their IT budget on backing legacy systems, such as maintaining data centers instead of executing a data migration to the cloud for managing support tickets.

CIOs who’ve applied technological improvements or even a full-blown digital transformation have reduced production costs in their businesses 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 eat up a significant percentage of the organization’s budget.

As a matter of fact, companies 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. Enhance Your Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems might cause unforeseen downtime for your organizational operations.

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

Your personnel unquestionably dislike the downtime and poor user experience of the obsolete technology too. And once the technology in their hands has developed quicker in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Minimize Your Security Risk While Staying Compliant

If your present systems are so old their provider no longer supports them, they can constitute a serious security risk to your business.

Often neglected and outdated systems, your legacy software, doesn’t receive the security updates and patches it needs to avoid cybersecurity breaches.

Major breakdowns happen with legacy systems frequently. Remember Equifax?

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

A single integration to your legacy software here, a hotfix for your legacy software there. Before you know it, your company is stumbling on a Frankenstein legacy system.

Your out-of-date technology are incapable of handling numerous data types—let alone the massive amounts of data produced by your IoT devices.

Forward-looking CIOs realize that legacy software modernization is mandatory to enhance IT system compatibility with innovative technological solutions.

That is indeed what the LinkedIn’s CIOs did while the firm was growing into the world’s premier professional network, moving its software architecture from a REST API or an event-driven architecture.

CIOs for Netflix, Unilever, SAP, the Federal Aviation Administration, and Amazon have also followed suit.

When Should I Consider Replacing My Legacy System? 6 Questions to Ask

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

Here are six questions to ask before upgrading any legacy system:

1. How much of your IT budget are you spending on maintenance costs for legacy software or forced downtime due to a total or partial malfunction of your outdated system?

If the cost of maintaining older systems are depleting major resources, it may be time for a cost-effective, new solution.

2. Do your legacy systems offer compatibility with newer technology and recent IT breakthroughs?

Or is it inconvenient to integrate with a new SaaS solution or API? Because of outdated technology or haphazard customization? If you answered “yes,” it’s time to upgrade your legacy system.

3. Is the vendor who designed your legacy system no longer in business?

Or are you having a hard time finding mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system introduces a serious threat to your company and should be modernized.

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

Because if you are unable to make the most of enormous data, you will not have the business insight you need to stay competitive. Adieu, legacy systems.

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

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

6. Is your legacy system SLOW?

It may be time to jump in with both feet and adapt. The future is FAST. And it has arrived.

How Can I Modernize 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—and all the speed, efficiency, and scalability your CIOs have been promising with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Technology

Do like LinkedIn and a host of other leading organizations: redesign your legacy software architecture to enable greater agility and scalability.

4. Refine Your Legacy Systems

Reconfigure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

Employ cloud computing with a data migration and application re-deployment to cloud infrastructure.

7. Encapsulate Your Outdated Systems Data and Functions

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

8. Migrate Your Legacy Systems Application

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

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

Think it’s time to modernize your legacy system? Begin with Wave’s comprehensive system audit, so you can get insights into its functionality and predicted lifespan.

In this fashion, you’ll know whether your company can get by with a few legacy system modifications or if you require a complete digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can perform the required upgrades or replacements: from adding features that improve the customer experience or expediting workflows 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 ready to help! Schedule a consultation today.