1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as outdated as the IRS’ current systems (some date back 60 years!). But, modernizing your legacy system has been on your mind A LOT nowadays.

Because it presents a cybersecurity hazard.

Because antiquated platforms are costing more to maintain while providing less and less efficiency every day.

Because you’re ready to take your business'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 important stakeholders—whether that is your business associate or the whole boardroom?

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

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems seeing as they are derived from older technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually vital to day-to-day business workflows, points out Gartner.

How important 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: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are CRUCIAL.

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

It’s no wonder, however, that modernizing or replacing legacy systems with newer technology, whether it be SaaS technology solutions, cloud computing, or on-premise installation is one of the most challenging issues CIOs in small and large companies confront in their careers.

What Are the Perks 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 eliminate?

Short answer, A LOT.

5 Essential Advantages of Modernizing Your Legacy Systems

In the event that you choose a legacy system enhancements or an absolute digital transformation, upgrading your legacy systems can help you future-proof your company:

1. Expedite Your Business Processes

A legacy system modernization, like the adoption of SaaS platforms, new business intelligence platforms, or cloud computing, can improve efficiencies in your workflow and other business processes.

It’s not uncommon for organizations to spend more than half of their IT budget on sustaining legacy systems, for example maintaining data hubs rather than executing a data migration to the cloud for managing support tickets.

CIOs that have implemented technological improvements or even a full-blown digital transformation have reduced production costs in their businesses 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 demand a large percentage of the company’s budget.

As a matter of fact, organizations in both public and private sectors spent $26.25 trillion in legacy IT systems operations and maintenance costs over the 11 years spanning 2010 to 2021.

3. Improve Your Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can result in unforeseen downtime for your organizational operations.

For airlines, IT systems instabilities can cause thousands of flights to be delayed or cancelled. It was a serious issue for airlines. Outdated technology is bad for business.

Your employees undoubtedly loathe the downtime and awful user experience of the outdated technology too. And when the tech in their hands has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Reduce Your Security Risk and Maintain Compliance

When your existing systems are so old their original vendor no longer services them, they could constitute a severe security risk to your organization.

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

Major failures happen with legacy systems all the time. Remember Equifax?

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

A single integration to your legacy software here, a hotfix for your legacy system there. In no time, your organization is stumbling on a Frankenstein-style legacy system.

Your out-of-date systems can hardly handle multiple data formats—let alone the massive amounts of data your IoT devices produce.

Dynamic CIOs understand that legacy software modernization is necessary to refine IT system compatibility with new technology solutions.

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

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

When Should I Consider Replacing My Legacy System? 6 Questions to Contemplate

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

Below are six questions to ask 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 maintaining outdated technology is eating up major resources, it may be time for a cost-effective, new system.

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

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

3. Is your legacy system's original developer no longer in business?

Or are you having difficulty finding mainframe programmers who can extend or fix your COBOL code? If so, your legacy system is a security risk to your business and should be modernized.

4. Is your legacy system capable of providing insight into real-time data transactions and operational patterns?

Because when you are unable to leverage large data, you won’t have the kind of business intelligence you need to be competitive. Bye-bye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches coincide with a spike in customer 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 system SLOW?

It may be time to jump in with both feet and adapt. The future is approaching at a frenetic pace. And it’s here.

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

2. Rebuild Your Legacy Software

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

3. Redesign 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. Reconfigure Your Legacy Systems

Reconfigure your code to get rid of technical debt.

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 software, 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 solution without dramatically modifying the code or losing functionality.

How Wave Can Help with Your Legacy System Modernization in San Diego?

Think it’s time for your legacy system modernization? Begin with Wave’s comprehensive system audit, so you can get insights into its functionality and predicted lifespan.

That way, you’ll know whether you can get by with a few legacy system modifications or if you require an extensive digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can perform the necessary upgrades or replacements: from adding functionality that improves the user experience or expediting workflows with automation and Business Intelligence platforms.

We will also provide you with the ongoing IT assistance you need to see the greatest return on your modernization investment.

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