1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as old as the IRS’ present systems (some are over 60 years old!). Still, upgrading your legacy system has been on your mind A LOT recently.

Because it presents a cybersecurity risk.

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

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

We get it. 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 partner or the whole boardroom?

Continue reading for your legacy system checklist, this will help you determine when it’s ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are antiquated systems because they are based on antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically critical to day-to-day business workflows, points out Gartner.

How essential are legacy systems? In the commercial sector, business processes like payroll, inventory tracking and replenishment, and cashless payment transactions would grind to a halt without the legacy system on which they operate.

Legacy systems drive the infrastructure we take for granted in the public sector: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are ESSENTIAL.

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

It’s no wonder, however, that upgrading or replacing legacy systems with innovative technology, whether SaaS technology solutions, cloud computing, or on-premise installation is among the most difficult tasks CIOs in small and large businesses encounter in their careers.

What Are the Benefits 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 expel?

To put it briefly, A LOT.

5 Essential Advantages of Legacy System Modernization

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

1. Optimize Your Business Operations

A legacy system modernization, such as the adoption of SaaS platforms, modern business intelligence software, or cloud computing, can enhance your workflow and other business processes.

It is not out of the ordinary for businesses to spend more than half of their IT budget on supporting legacy systems, for instance maintaining data hubs rather than performing a data migration to the cloud for managing support tickets.

CIOs who’ve implemented technological advancements or perhaps a full-scale digital transformation have reduced production expenditures in their businesses by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that legacy system, application, and infrastructure maintenance can demand a significant percentage of the company’s budget.

Frankly, businesses in the 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. Improve Your Organization’s Customer Experience and Employee Retention

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

If you’re an air carrier, IT systems outages can cause delays and even the cancellation of thousands of flights. It was a real concern for airlines. Obsolete systems are bad for business.

Your personnel unquestionably resent the downtime and awful user experience of the obsolete 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 present systems are so outdated that their manufacturer no longer supports them, they could pose a severe security risk to your organization.

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

Substantial mishaps occur with legacy systems regularly. Remember Equifax?

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

A one-time integration to your legacy software here, a hotfix for your legacy system there. Before long, your organization is clunking along on a Frankenstein-style legacy system.

Your obsolete systems barely handle numerous data types—much less the big data produced by your IoT devices.

Dynamic CIOs realize that legacy software upgrading is mandatory to refine IT system compatibility with modern technology platforms.

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

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

Below are some questions to keep in mind before any legacy system modernization:

1. What percentage of your IT budget do you spend on legacy software maintenance or forced downtime as a result of a total or partial malfunction of your outdated system?

If the cost of maintaining older technology is eating up considerable resources, it may be time for a more cost-effective system.

2. Do your legacy systems work with modern technology and recent IT innovations?

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

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

Or are you having a hard time sourcing mainframe programmers who can fix or extend your COBOL code? If this is the case, your legacy system introduces a security risk to your company and should be upgraded.

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

Because when you can’t leverage big data, you will not have the business insight you need to be competitive. Bye-bye, legacy systems.

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

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

6. Is your legacy system SLOW?

It might be time to jump in with both feet and make a change. The future is moving at a breakneck 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—with all the speed, agility, and scalability your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Software

Rewrite the application components, so you can implement 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. Reconfigure Your Legacy Systems

Reconfigure your code, so you can kick technical debt to the curb.

5. Rehost Your Legacy Systems

Implement cloud computing with a data migration and application re-deployment to cloud infrastructure.

7. Encapsulate Your Outdated Systems Data and Functions

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

8. Replatform Your Legacy Systems Application

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

How Wave Can Assist with Your Legacy System Upgrade in North Las Vegas?

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

That way, you’ll know whether your organization can cope 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 carry out the necessary upgrades or replacements: from adding features that improve the customer experience or streamlining processes with automation and Business Intelligence platforms.

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

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