1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as outdated as the IRS’ present systems (some are over 60 years old!). Still, modernizing your legacy system has been at the back of your mind A LOT recently.

Because it’s a security risk.

Because antiquated systems are racking up maintenance costs while delivering less and less capability 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 important stakeholders—whether that’s your business partner or the whole boardroom?

Keep reading for your legacy system assessment, so you know when it’s the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are obsolete systems seeing as they are derived from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically essential to daily business workflows, points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 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.

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

It’s no surprise, however, that upgrading or replacing legacy systems with newer technology, be it SaaS technology solutions, cloud computing, or local installation is one of the most challenging issues CIOs in small and large organizations encounter in their careers.

What Are the Benefits of Modernizing 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 remove?

Short answer, A LOT.

5 Key Advantages of Legacy System Modernization

In the event that you go for legacy system enhancements or an absolute digital transformation, upgrading your legacy systems can help you future-proof your firm:

1. Expedite Your Business Processes

A legacy system update, such as the implementation of SaaS solutions, modern business intelligence tools, or cloud computing, can improve efficiencies in your workflow and other business operations.

It’s not unusual for companies to waste over half of their IT budget on backing legacy systems, for example maintaining data hubs rather than executing a data migration to the cloud for managing support tickets.

CIOs who’ve applied technological upgrades or perhaps a full-scale digital transformation have cut operational expenses in their companies by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know the costs of maintaining legacy systems, infrastructure, and applications can eat up a substantial percentage of the business’s budget.

Frankly, companies in both 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 Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can result in unforeseen downtime for your business processes.

If you’re an air carrier, IT systems outages can cause thousands of flights to be delayed or cancelled. It was a major issue for carriers. Obsolete technology is bad for business.

Your employees unquestionably dislike the downtime and awful user experience of the older technology too. And when the tech in their pockets has advanced faster in the last decade than your IT systems—it’s time to upgrade. For your image.

4. Reduce Your Security Risk and Maintain Compliance

If your existing systems are so outdated that 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, doesn’t receive the security patches and updates it requires to avoid cybersecurity threats.

Major mishaps happen 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. Before you know it, your company is clunking along on a Frankenstein-style legacy system.

Your old technology barely handle numerous data formats—not to mention the massive amounts of data generated by your IoT devices.

Innovative CIOs know legacy software upgrading is mandatory to improve IT system compatibility with innovative technology platforms.

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

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

When Should I Replace My Legacy System? 6 Questions to Ask

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

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

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

If the cost of maintaining outdated technology is depleting important resources, it might be time for a new, cost-effective solution.

2. Do your legacy systems offer compatibility with the latest technology and recent IT advancements?

Or is integration with a new SaaS solution or API a nightmare? Because of obsolete technology or haphazard customization? If you answered “yes,” it’s time to modernize your legacy system.

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

Or are you having a hard time locating 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. Is your legacy system capable of providing visibility into real-time data transfers and workflow patterns?

Because when you are unable to leverage big data, you will not have the kind of business intelligence you need to stay competitive. Goodbye, legacy systems.

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

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

6. Is your legacy system SLOW?

It may be time to take the plunge and adapt. The future is approaching at a frenetic pace. And it has arrived.

How Can I Modernize 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 promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Technology

Do as LinkedIn along with many other world-class firms have done: rearchitect your legacy software architecture to improve agility and scalability.

4. Refactor Your Legacy Systems

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

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Functions and Data

Encapsulate 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 application to a new run-time platform without drastically altering the code or sacrificing functionality.

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

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

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

Whatever the case proves to be for your legacy systems, Wave can perform the required upgrades or replacements: from adding attributes that improve the user experience or optimizing processes with automation and Business Intelligence platforms.

We'll also provide you with the sustained IT support you need to maximize your modernization investment.

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