1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as old as the IRS’ existing systems (some date back 60 years!). But, upgrading your legacy system has been at the back of your mind A LOT recently.

Because it’s a security hazard.

Because outdated platforms are costing more to maintain while delivering less and less functionality every day.

Because you’re 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’s your business partner or the whole boardroom?

Keep reading for your legacy system assessment, this will help you determine when it is the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems because they are built from outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally vital to everyday business processes, points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 fuel public-sector infrastructure that we take for granted: telecommunications services, wastewater treatment plants, power grids, 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 corporations and governments internationally since 2010.

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

What Are the Advantages 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 eliminate?

In a nutshell, A LOT.

5 Significant Advantages of Legacy System Modernization

In the event that you choose a legacy system enhancements or a comprehensive digital transformation, upgrading your legacy systems can assist you in future-proofing your firm:

1. Streamline Your Business Operations

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

It’s not unusual for businesses to expend over half of their IT budget on sustaining legacy systems, for example maintaining data hubs rather than performing a data migration to the cloud for support ticket management.

CIOs that have adopted technological upgrades or even a comprehensive digital transformation have cut production costs in their companies by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

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

In 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 Organization’s Customer Experience and Employee Retention

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

For airlines, IT systems faults can result in delays and even the cancellation of thousands of flights. It was a major problem for carriers. Outdated technology is bad for business.

Your employees certainly dislike the downtime and poor user experience of the older technology too. And once the tech in their hands has developed quicker in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Lower Your Security Risk While Maintaining Compliance

If your current systems are so outdated that their original vendor no longer supports them, they can pose a major security risk to your organization.

Often neglected and outdated systems, your legacy software, does not receive the security patches and updates it needs to avoid cybersecurity threats.

Major failures happen with legacy systems frequently. 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 you know it, your organization is clunking along on a Frankenstein-style legacy system.

Your out-of-date systems can hardly handle numerous data types—not to mention the big data generated by your IoT devices.

Forward-looking CIOs understand that legacy software modernization is essential to improve the compatibility of their IT systems with innovative technology solutions.

That is indeed what the LinkedIn’s CIOs did while the organization was developing into the largest global professional network, transforming its software architecture from a REST API or an event-driven architecture.

CIOs for SAP, Netflix, Unilever, Amazon, and the Federal Aviation Administration have also followed suit.

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

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 are you spending on legacy software maintenance or forced downtime due to a complete or partial breakdown of your outdated system?

If the cost of operating older systems are depleting important resources, it may be time for a more cost-effective solution.

2. Do your legacy systems support the latest tech and recent IT advancements?

Or is it inconvenient to integrate with a new SaaS solution or API? Because of outdated 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 a hard time sourcing mainframe programmers who can extend or fix your COBOL code? If so, your legacy system introduces a potential threat to your company and should be modernized.

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

Because when you can’t take advantage of large data, you will not have the kind of business intelligence you need to stay competitive. Bye-bye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches coincide with an uptick in client support tickets and complaints?

With such a poor customer experience, you won’t bring in new customers. It’s time for a modern system.

6. Is your legacy technology SLOW?

It might 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 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—with all the speed, agility, and scalability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

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 to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

Incorporate your data and functions into the solution, so you can access them as services via an API.

8. Replatform Your Legacy Systems Application

Move your legacy systems program to a new run-time solution without dramatically altering the code or losing functionality.

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

Think it’s time to modernize your legacy system? Begin with Wave’s extensive system audit, so you can get insights into its functionality and estimated lifespan.

That way, you’ll know whether your organization can cope with a few legacy system enhancements 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 customer experience or streamlining workflows with automation and Business Intelligence platforms.

We will also give you the continuous IT support you need to get the most out of your modernization investment.

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