1993 just called. It wants its IT systems back…

Perhaps your legacy systems aren’t as antiquated as the IRS’ existing systems (some are over 60 years old!). Still, revamping your legacy technology has been at the back of your mind A LOT recently.

Because it poses a security threat.

Because antiquated systems are racking up maintenance costs while delivering less and less efficiency every day.

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

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

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

Continue reading for your legacy system evaluation, so you know when it’s ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems since they are derived from antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally vital to everyday business processes, 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 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 businesses and governments globally since 2010.

It’s no wonder, then, that optimizing or replacing legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or on-premise implementation is one of the greatest challenges CIOs in small and large firms encounter in their careers.

What Are the Perks 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 modernization of your legacy systems remove?

In a nutshell, A LOT.

5 Key Advantages of Upgrading Your Legacy Systems

Whether you opt for legacy system enhancements or a complete digital transformation, your legacy system modernization can assist you in future-proofing your firm:

1. Streamline Your Business Operations

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

It is not unusual for companies to spend over half of their IT budget on sustaining legacy systems, for example 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 comprehensive digital transformation have cut operational costs in their companies by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know legacy system, application, and infrastructure maintenance can demand a significant percentage of the business’s budget.

As a matter of fact, organizations in both 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 Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology might cause unexpected downtime for your organizational operations.

If you’re an air carrier, IT systems instabilities can result in delays and even the cancellation of thousands of flights. It was a serious concern for airlines. Outdated technology is bad for business.

Your personnel unquestionably resent the downtime and poor user experience of the older technology too. And once the technology in their pockets has advanced faster 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 manufacturer no longer maintains them, they can pose a major security risk to your organization.

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

Substantial mishaps happen with legacy systems all the time. Remember Equifax?

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

A one-off integration to your legacy software here, a hotfix for your legacy software there. Before long, your organization is stumbling on a Frankenstein legacy system.

Your obsolete technology are incapable of handling multiple data formats—not to mention the big data generated by your IoT devices.

Forward-looking CIOs realize that legacy software modernization is necessary to improve IT system compatibility with innovative technology tools.

That’s exactly what the LinkedIn’s CIOs did while the company was scaling into the world’s premier professional network, converting its system architecture 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 Upgrade My Legacy System? 6 Questions to Ponder

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 any legacy system modernization:

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

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

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

Or is integration with a new SaaS solution or API a nightmare? Because of too much old technology or ad-hoc 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 difficulty locating mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system is a potential risk to your business and should be modernized.

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

Because if you can’t take advantage of big data, you will not have the business insight you need to be competitive. Goodbye, legacy systems.

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

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

6. Is your legacy system SLOW?

It may be time to take the plunge and make a change. The future is approaching at a frenetic pace. 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, agility, 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 integrate new tech 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. Refactor Your Legacy Systems

Reconfigure 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. Digest Your Legacy Systems Data and Functions

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

8. Replatform Your Legacy Systems Application

Transfer your legacy systems application to a new run-time tool without extensively altering the code or sacrificing functionality.

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

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 performance and estimated lifespan.

That way, you’ll know whether you can get around with a few legacy system tweaks or if you need a complete digital transformation now.

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

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

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