1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as old as the IRS’ current systems (some date back 60 years!). Still, upgrading your legacy system has been at the back of your mind A LOT lately.

Because it’s a security threat.

Because antiquated systems are costing more to maintain while providing even less efficiency every day.

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

We get it. You’re ready for a legacy system modernization.

But how can you gain the necessary buy-in from primary stakeholders—whether that is your business associate or the entire boardroom?

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

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are obsolete systems seeing as they are built from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually critical to everyday business processes, points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 drive public-sector infrastructure that we take for granted: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are VITAL.

However, 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 upgrading or rebuilding legacy systems with innovative technology, whether cloud computing, SaaS technology solutions, or on-site deployment is one of the most difficult tasks 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 modernization of your legacy systems expel?

Short answer, A LOT.

5 Essential Benefits of Upgrading Your Legacy Systems

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

1. Streamline Your Business Processes

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

It is not out of the ordinary for organizations to waste over half of their IT budget on sustaining legacy systems, for instance maintaining data centers instead of performing a data migration to the cloud for managing support tickets.

CIOs who’ve adopted technological upgrades or even a full-scale digital transformation have lowered production expenditures in their businesses by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that the maintenance costs of legacy systems, applications, and infrastructure can account for a substantial percentage of the business’s budget.

In fact, organizations in the 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 Company’s Customer Experience and Employee Retention

Legacy technology glitches and failures can lead to unplanned downtime for your organizational workflows.

For airlines, IT systems outages can result in delays and even the cancellation of thousands of flights. It was a major problem for carriers. Obsolete systems are bad for business.

Your personnel undoubtedly dislike the downtime and unsatisfactory user experience of the obsolete technology too. And when the tech in their hands has advanced faster in the last decade than your IT systems—it’s time to upgrade. For your reputation.

4. Lower Your Security Risk While Staying Compliant

When your current systems are so antiquated that their provider no longer supports them, they can pose a serious security risk to your business.

Frequently ignored and out of date, your legacy software, does not receive the security patches and updates it requires to avoid cybersecurity threats.

Big breakdowns occur with legacy systems frequently. Remember Equifax?

5. Make Your Business Operations More Agile for Greater Scalability

A one-time integration to your legacy system here, a hotfix for your legacy system there. In no time, your organization is clunking along on a Frankenstein legacy system.

Your outdated systems can hardly handle various data types—not to mention the big data your IoT devices generate.

Forward-thinking CIOs realize that legacy software modernization is essential to refine the compatibility of their IT systems with modern technological tools.

That’s exactly what the LinkedIn’s CIOs did when the organization was growing into the world’s premier professional network, converting its system architecture from a REST API or an event-driven architecture.

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

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

When contemplating whether or not to modernize legacy technology, CIOs must assess three primary factors: technology, architecture, and functionality.

Below are a few questions to ask before any legacy system modernization:

1. What percentage of your IT budget are you spending on legacy software maintenance or forced downtime because of a full or partial breakdown of your outdated system?

If your cost of keeping obsolete technology is eating up considerable resources, it may be time for a more cost-effective solution.

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 too much old 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 a hard time sourcing mainframe programmers to fix or extend your COBOL code? If this is the case, your legacy system introduces a potential risk to your organization 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 take advantage of large data, you will not have the kind of business intelligence you need to stay competitive. Goodbye, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system coincide with an uptick in customer support tickets and complaints?

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

6. Is your legacy system SLOW?

It may be time to bite the bullet and make a change. The future is approaching at a frenetic pace. And it’s here.

How Can I Modernize 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 been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

Rewrite the software components, so you can implement new tech solutions, business intelligence, and big data capacity.

3. Rearchitect 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. Reconfigure Your Legacy Systems

Restructure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

Encapsulate your data and functions into the solution, so that they may be accessed as services via an API.

8. Replatform Your Legacy Systems Application

Transfer your legacy systems program to a new run-time solution without dramatically modifying the code or sacrificing functionality.

How Wave Can Assist with Your Legacy System Modernization in San Antonio?

Do you believe it’s time for your legacy system modernization? Begin with Wave’s thorough system audit, so you can get insights into its performance and expected lifespan.

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

Whatever the circumstance may be for your legacy systems, Wave can handle the needed modifications or replacements: from adding functionality that improves the customer experience or streamlining processes with automation and Business Intelligence solutions.

We will 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.