1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as antiquated as the IRS’ existing systems (some date back 60 years!). But, revamping your legacy technology has been at the back of your mind A LOT recently.

Because it’s a cybersecurity threat.

Because obsolete platforms are costing more to maintain 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 important stakeholders—whether that’s your business partner 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 Legacy systems are outdated systems since they are based on outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually essential to day-to-day business processes, 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 fuel public-sector infrastructure that we take for granted: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are ESSENTIAL.

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

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

What Are the Advantages 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 “barriers” could the modernization of your legacy systems remove?

Short answer, A LOT.

5 Key Benefits of Legacy System Modernization

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

1. Streamline Your Business Processes

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

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

CIOs who’ve applied technological upgrades or even a full-blown digital transformation have lowered production expenditures in their organizations by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

CIOs are well aware that legacy system, application, and infrastructure maintenance can account for a significant percentage of the business’s budget.

As a matter of fact, organizations in the 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. Improve Your Organization’s Customer Experience and Employee Retention

Legacy technology glitches and failures might cause unexpected downtime for your organizational processes.

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

Your staff undoubtedly dislike the downtime and poor user experience of the obsolete technology too. And once the tech in their pockets 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 Maintaining Compliance

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

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

Major mishaps happen with legacy systems regularly. Remember Equifax?

5. Make Your Business Operations More Agile for Greater Scalability

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

Your obsolete systems barely handle various data types—not to mention the massive amounts of data generated by your IoT devices.

Dynamic CIOs realize that legacy software modernization is necessary to refine IT system compatibility with innovative technology tools.

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

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

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.

Below are some things to consider before any legacy system upgrade:

1. What percentage of your IT budget is spent on legacy software maintenance or forced downtime because of a full or partial failure of your old system?

If the cost of keeping older systems are draining important resources, it might be time for a more cost-effective solution.

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

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

3. Has the vendor that originally designed your legacy system folded?

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

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

Because if you are unable to make the most of enormous data, you won’t have the kind of business intelligence you need to stay competitive. Adieu, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system coincide with a spike in client complaints and support tickets?

With such a poor customer experience, you won’t bring in new customers. It’s time for a fresh system.

6. Is your legacy technology SLOW?

It might be time to bite the bullet and adapt. The future is approaching at a frenetic pace. And it’s here.

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, agility, and expandability your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

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

3. Redesign Your Legacy Systems

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

4. Reconfigure Your Legacy Systems

Retool your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

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

8. Replatform Your Legacy Systems Application

Transfer your legacy systems program to a new run-time platform without dramatically altering the code or compromising functionality.

How Wave Can Assist with Your Legacy System Upgrade in Baltimore?

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

In this fashion, you’ll know whether you can get by with a few legacy system enhancements or if you require an extensive digital transformation now.

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

We will also offer you the ongoing IT assistance you need to get the most out of your modernization investment.

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