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Your legacy systems probably aren’t as outdated as the IRS’ existing systems (some are over 60 years old!). Still, revamping your legacy technology has been on your mind A LOT nowadays.

Because it presents a security risk.

Because obsolete systems are costing more to maintain while providing even less efficiency every day.

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

We get it. You are ready for a legacy system modernization.

But how do you get the buy-in you need from primary stakeholders—whether that’s your business partner or the entire boardroom?

Continue reading for your legacy system evaluation, this will help you determine when it is ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are obsolete systems since they are based on older technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually vital to everyday business operations, points out Gartner.

How relevant 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 power public-sector infrastructure that we take for granted: 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 businesses and governments globally since 2010.

It’s no surprise, however, that optimizing or replacing legacy systems with newer technology, whether it be SaaS technology solutions, cloud computing, or on-site implementation is one of the most difficult tasks CIOs in small and large organizations face 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 “obstacles” could the modernization of your legacy systems eliminate?

In a nutshell, A LOT.

5 Key Benefits of Modernizing Your Legacy Systems

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

1. Optimize Your Business Processes

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

It’s not unusual for businesses to waste over half of their IT budget on sustaining legacy systems, for example maintaining data hubs instead of performing a data migration to the cloud for managing support tickets.

CIOs that have implemented technological improvements or even a full-scale digital transformation have reduced production expenses in their organizations by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

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

Frankly, 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. Improve Your Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can result in unexpected downtime for your organizational workflows.

For airlines, IT systems faults can result in thousands of flights to be delayed or cancelled. It was a major concern for airlines. Outdated systems are bad for business.

Your staff unquestionably dislike the downtime and awful user experience of the outdated technology as well. And when the technology in their pockets has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Lower Your Security Risk and Maintain Compliance

When your present systems are so outdated that their provider no longer supports them, they could constitute a severe security risk to your business.

Your legacy software, which is frequently ignored and out of date, doesn’t receive the security patches and updates it needs to prevent cybersecurity breaches.

Substantial breakdowns occur with legacy systems regularly. Remember Equifax?

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

A one-time integration to your legacy system here, a hotfix for your legacy software there. In no time, your company is clunking along on a Frankenstein legacy system.

Your obsolete technology can hardly handle multiple data formats—let alone the enormous amounts of data produced by your IoT devices.

Dynamic CIOs understand that legacy software modernization is necessary to refine the compatibility of their IT systems with innovative technology tools.

That is exactly what the CIOs at LinkedIn did when the organization was developing into the largest global professional network, transforming 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 Replace My Legacy System? 6 Questions to Ponder

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

Here are six things to consider before any legacy system modernization:

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

If your cost of maintaining obsolete systems are depleting major resources, it might be time for a more cost-effective platform.

2. Do your legacy systems offer compatibility with the latest technology 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 difficulty sourcing mainframe programmers who can fix or extend your COBOL code? If this is the case, your legacy system poses a potential risk to your organization and should be replaced.

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

Because when you can’t make the most of enormous data, you won’t have the kind of business intelligence you need to be competitive. Goodbye, legacy systems.

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

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

6. Is your legacy technology SLOW?

It may be time to bite the bullet and make the change. The future is approaching at a frenetic pace. And it has arrived.

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

2. Rebuild Your Legacy Software

Rewrite the software components, 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. Reconfigure Your Legacy Systems

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

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Data and Functions

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

8. Migrate Your Legacy Systems Application

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

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

Do you believe it’s time for your legacy system modernization? Begin with Wave’s comprehensive system audit, so you can learn about its functionality and predicted lifespan.

In this fashion, you’ll know whether you can get around with a few legacy system enhancements or if you need a complete digital transformation now.

Whatever the situation may be for your legacy systems, Wave can perform the needed upgrades or replacements: from adding features that improve the customer experience or optimizing workflows with automation and Business Intelligence solutions.

We'll also provide you with the ongoing IT support 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.