1993 just called. It wants its IT systems back…

Perhaps your legacy systems are not as old as the IRS’ current systems (some date back 60 years!). However, modernizing your legacy system has been on your mind A LOT nowadays.

Because it’s a cybersecurity risk.

Because obsolete platforms are racking up maintenance costs while generating even 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 necessary buy-in from key stakeholders—whether that’s your business associate or the entire boardroom?

Keep reading for your legacy system evaluation, 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 antiquated systems seeing as they are derived from antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally vital to everyday business workflows, points out Gartner.

How important 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 public-sector infrastructure that we take for granted: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are CRUCIAL.

However, the costs of modernization (including unsuccessful modernization efforts) and maintenance of legacy systems are cumbersome, totaling $35 trillion for enterprises and governments globally since 2010.

It’s no surprise, however, that modernizing or replacing legacy systems with new technology, whether SaaS technology solutions, cloud computing, or on-premise deployment is one of the greatest challenges CIOs in small and large organizations confront in their careers.

What Are the Advantages 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 the modernization of your legacy systems eliminate?

Short answer, A LOT.

5 Significant Benefits of Modernizing Your Legacy Systems

If you choose a legacy system enhancements or a complete digital transformation, modernizing your legacy systems can help you future-proof your business:

1. Expedite Your Business Processes

A legacy system upgrade, such as the deployment of SaaS solutions, new business intelligence platforms, or cloud computing, can enhance your workflow and other business operations.

It’s not uncommon for organizations to waste over half of their IT budget on sustaining legacy systems, such as maintaining data hubs instead of performing a data migration to the cloud for support ticket management.

CIOs who’ve implemented technological upgrades or even a full-scale digital transformation have reduced operational costs in their organizations 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 account for a large percentage of the business’s budget.

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

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

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

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

4. Lower Your Security Risk and Maintain Compliance

If your current systems are so antiquated that their original vendor no longer maintains them, they can constitute a severe security risk to your company.

Frequently ignored and out of date, your legacy software, doesn’t receive the security patches and updates it requires to prevent cybersecurity attacks.

Big mishaps occur with legacy systems frequently. Remember Equifax?

5. Make Your Business Processes More Agile for Better Scalability

A one-off integration to your legacy system here, a hotfix for your legacy software there. Before you know it, your business is stumbling on a Frankenstein-style legacy system.

Your outdated systems can hardly handle various data types—let alone the enormous amounts of data your IoT devices produce.

Innovative CIOs understand that legacy software upgrading is essential to enhance the compatibility of their IT systems with new technological tools.

That is exactly what the CIOs at LinkedIn did while the organization was scaling into the largest global professional network, moving its system design from a REST API or an event-driven architecture.

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

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

Technology, architecture, and functionality are 3 major considerations for CIOs when deciding if it’s time for a legacy technology upgrade.

Here are a few questions to ask before upgrading any legacy system:

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

If the cost of operating older technology is eating up major resources, it might be time for a new, cost-effective platform.

2. Do your legacy systems work with modern technology and recent IT advancements?

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

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

Or are you having trouble finding mainframe programmers to fix or extend your COBOL code? If so, your legacy system is a serious threat to your organization and should be upgraded.

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

Because if you are unable to leverage enormous data, you will not have the kind of business intelligence you need to stay competitive. Adieu, legacy systems.

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

With such a poor customer experience, you won’t bring in 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 make the change. The future is FAST. And it’s here.

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—and all the speed, efficiency, and versatility your CIOs have been promising with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

Rewrite the application components, so you can integrate new 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. Refactor Your Legacy Systems

Restructure your code to get rid of technical debt.

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

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

8. Migrate Your Legacy Systems Application

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

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

Do you believe it’s time to modernize your legacy system? Begin with Wave’s thorough system audit, so you can get insights into its functionality and estimated lifespan.

That way, you’ll know whether your organization can cope with a few legacy system tweaks or if you require a complete digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can handle the required upgrades or replacements: from adding features that improve the user experience or optimizing processes with automation and Business Intelligence platforms.

We'll also provide you with the sustained IT assistance you need to get the most out of your modernization investment.

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