1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as outdated as the IRS’ present systems (some are over 60 years old!).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

Because it’s a security risk.

Because antiquated platforms are racking up maintenance costs while delivering less and less functionality every day.

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

We understand. You are ready for a legacy system modernization.

But how can you gain the support of primary stakeholders—whether that’s your business partner or the whole boardroom?

Continue reading for your legacy system checklist, 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 obsolete systems because they are derived from antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically essential to day-to-day business processes, points out Gartner.

How essential 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 VITAL.

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

It’s no wonder, then, that upgrading or rebuilding legacy systems with new technology, whether it be cloud computing, SaaS technology solutions, or local installation 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 “hurdles” could the upgrading of legacy systems eliminate?

Short answer, A LOT.

5 Essential Benefits of Legacy System Modernization

If you choose a legacy system enhancements or a comprehensive digital transformation, your legacy system modernization can assist you in future-proofing your company:

1. Optimize Your Business Operations

A legacy system update, such as the deployment of SaaS tools, modern business intelligence software, or cloud computing, can refine your workflow and other business processes.

It’s not unusual for businesses to expend over half of their IT budget on supporting legacy systems, such as maintaining data centers rather than executing a data migration to the cloud for support ticket management.

CIOs who’ve adopted technological improvements or perhaps a full-blown digital transformation have cut production expenditures in their businesses by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

CIOs are well aware that the maintenance costs of legacy systems, applications, and infrastructure can demand a significant percentage of the company’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-year period from 2010 to 2021.

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

Glitches and malfunctions in legacy technology might cause unplanned downtime for your organizational processes.

For airlines, IT systems faults can result in delays and even the cancellation of thousands of flights. It was a real issue for airlines. Obsolete systems are bad for business.

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

4. Reduce Your Security Risk While Maintaining Compliance

If your existing systems are so old their manufacturer no longer supports them, they could constitute a severe security risk to your business.

Frequently ignored and out of date, your legacy software, doesn’t receive the security patches and updates it requires to prevent cybersecurity attacks.

Substantial mishaps happen with legacy systems regularly. Remember Equifax?

5. Make Your Business Processes More Agile for Greater Scalability

A single integration to your legacy system here, a hotfix for your legacy technology there. Before long, your company is clunking along on a Frankenstein-style legacy system.

Your obsolete systems are incapable of handling numerous data types—let alone the enormous amounts of data your IoT devices produce.

Dynamic CIOs know legacy software upgrading is mandatory to refine IT system compatibility with new technological solutions.

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

CIOs for Unilever, SAP, Netflix, Amazon, and the Federal Aviation Administration 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 six questions to ask before any legacy system modernization:

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

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

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

Or is integration with a new SaaS solution or API a nightmare? Because of obsolete technology or ad-hoc customization? If you answered “yes,” it is time for a legacy system upgrade.

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

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

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

Because when you are unable to leverage enormous data, you won’t 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 correspond with an uptick in customer support tickets and complaints?

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

6. Is your legacy system SLOW?

It may be time to bite the bullet and adapt. The future is moving at a breakneck pace. And it’s here.

How Can I Revamp 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 expandability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

Rewrite the legacy system, so you can incorporate new technology solutions, big data capacity, and business intelligence.

3. Rearchitect Your Legacy Technology

Redesign your legacy software architecture to provide more agility and scalability, as LinkedIn and a slew of other outstanding firms have done.

4. Refactor Your Legacy Systems

Reconfigure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

Adopt 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 that they may be accessed as services through an API.

8. Replatform Your Legacy Systems Application

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

How Wave Can Be of Assistance with Your Legacy System Upgrade in Greensboro?

Do you believe it’s time for your legacy system modernization? Start with Wave’s comprehensive system audit, so you can learn about its performance and expected lifespan.

In this fashion, you’ll know whether you can get around with a few legacy system tweaks or if you need a comprehensive digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can handle the required upgrades or replacements: from adding attributes that improve the customer experience or expediting workflows with automation and Business Intelligence platforms.

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

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