1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as antiquated as the IRS’ existing systems (some are over 60 years old!). However, modernizing your legacy system has been on your mind A LOT lately.

Because it is a security hazard.

Because outdated platforms are costing more to maintain while generating less and less capability every day.

Because you are ready to level up your organization’s digital transformation.

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

But how do you get the buy-in you need from important stakeholders—whether that is your business associate or the entire boardroom?

Continue reading for your legacy system assessment, 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 seeing as they are based on antiquated technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally vital to day-to-day 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 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 CRUCIAL.

But, the modernization (including failed modernization efforts) and maintenance costs of keeping legacy systems are troublesome, totaling $35 trillion for companies and governments globally since 2010.

It’s no surprise, however, that optimizing or rebuilding legacy systems with innovative technology, be it cloud computing, SaaS technology solutions, or on-site deployment is among the most difficult tasks CIOs in small and large businesses encounter 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 “obstacles” could the upgrading of legacy systems expel?

To put it briefly, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

Whether you choose a legacy system enhancements or a complete digital transformation, your legacy system modernization can help you future-proof your company:

1. Streamline Your Business Operations

A legacy system update, like the implementation of SaaS solutions, modern business intelligence tools, or cloud computing, can refine your workflow and other business operations.

It is not uncommon for companies to spend over half of their IT budget on sustaining legacy systems, such as maintaining data hubs instead of carrying out a data migration to the cloud for support ticket management.

CIOs who’ve implemented technological upgrades or perhaps a comprehensive digital transformation have cut production expenses in their companies by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

CIOs are well aware that the costs of maintaining legacy systems, infrastructure, and applications can eat up a substantial percentage of the company’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. Enhance Your Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can result in unexpected downtime for your organizational processes.

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

Your staff undoubtedly dislike the downtime and unsatisfactory user experience of the obsolete technology as well. And when the tech in their hands has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your image.

4. Lower Your Security Risk and Maintain Compliance

When your present systems are so old their original vendor no longer supports them, they can pose a major security risk to your company.

Frequently ignored and out of date, your legacy software, does not receive the security patches and updates it requires to block cybersecurity breaches.

Major mishaps occur with legacy systems frequently. 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 business is clunking along on a Frankenstein legacy system.

Your out-of-date technology barely handle various data formats—let alone the enormous amounts of data generated by your IoT devices.

Prospective CIOs realize that legacy software upgrading is necessary to refine the compatibility of their IT systems with new technological solutions.

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

CIOs for SAP, Netflix, Unilever, the Federal Aviation Administration, and Amazon 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.

Below are a few questions to keep in mind before upgrading any legacy system:

1. What percentage of your IT budget do you spend on legacy software maintenance or forced downtime due to a full or partial malfunction of your out-of-date system?

If the cost of keeping outdated technology is draining considerable resources, it may be time for a cost-effective, new system.

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

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 is 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 to fix or extend your COBOL code? If so, your legacy system is a serious risk to your firm and should be upgraded.

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

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

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

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

6. Is your legacy technology SLOW?

It might be time to take the plunge and make the change. The future is FAST. And it’s here.

How Can I Upgrade My Legacy System?

What are your modernization alternatives if you've determined that your legacy systems no longer fulfill your company needs?

1. Replace Your Legacy Systems

Out with the old, and in with the new system—and all the speed, efficiency, and versatility your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

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

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

7. Digest Your Legacy Systems Functions and Data

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

8. Migrate Your Legacy Systems Application

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

How Wave Can Help with Your Legacy System Modernization in Glendale?

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

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

Whatever the case proves to be for your legacy systems, Wave can perform the necessary upgrades or replacements: from adding features that improve the user experience or streamlining workflows with automation and Business Intelligence platforms.

We'll also offer you the ongoing IT assistance you need to see the greatest return on your modernization investment.

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