1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as antiquated as the IRS’ existing systems (some date back 60 years!). But, modernizing your legacy technology has been on your mind A LOT lately.

Because it is a security risk.

Because outdated systems are increasing maintenance expenses while generating even less capability every day.

Because you are ready to take your business'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 key stakeholders—whether that’s your business associate or the entire boardroom?

Continue reading for your legacy system evaluation, so you know when it is time to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are outdated systems because they are derived from outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are typically essential to daily business operations, points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 the infrastructure we take for granted in the public sector: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are CRUCIAL.

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

It’s no wonder, then, that modernizing or replacing legacy systems with innovative technology, whether it be SaaS technology solutions, cloud computing, or local installation is one of the most difficult tasks CIOs in small and large organizations face 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 “hurdles” could legacy system modernization expel?

Short answer, A LOT.

5 Essential Benefits of Legacy System Modernization

In the event that you opt for legacy system enhancements or a comprehensive digital transformation, your legacy system modernization can help you future-proof your business:

1. Optimize Your Business Operations

A legacy system modernization, like the implementation of SaaS solutions, modern business intelligence software, or cloud computing, can improve efficiencies in your workflow and other business processes.

It is not uncommon for organizations to waste more than half of their IT budget on supporting legacy systems, for instance maintaining data centers rather than performing a data migration to the cloud for support ticket management.

CIOs that have implemented technological advancements or even a full-scale digital transformation have reduced operational expenses in their businesses by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

CIOs well know the maintenance costs of legacy systems, applications, and infrastructure can account for a large percentage of the business’s budget.

Frankly, companies in both 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. Enhance Your Organization’s Customer Experience and Employee Retention

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

For airlines, IT systems faults can result in thousands of flights to be delayed or cancelled. It was a serious problem for airlines. Outdated technology is bad for business.

Your employees undoubtedly dislike the downtime and awful user experience of the obsolete technology as well. And once the technology in their pockets has seen more advancements in the last decade than your IT systems—it’s time for an upgrade. For your reputation.

4. Lower Your Security Risk and Stay Compliant

If your existing systems are so old their provider no longer services them, they can pose a severe security risk to your business.

Your legacy software, which is frequently ignored and out of date, does not receive the security patches and updates it requires to prevent cybersecurity breaches.

Major mishaps occur with legacy systems regularly. Remember Equifax?

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

A one-off integration to your legacy software here, a hotfix for your legacy software there. Before long, your company is stumbling on a Frankenstein-style legacy system.

Your obsolete technology barely handle multiple data types—much less the enormous amounts of data your IoT devices produce.

Prospective CIOs understand that legacy software modernization is essential to improve the compatibility of their IT systems with modern technology solutions.

That’s exactly what the CIOs at LinkedIn did when the organization was scaling into the largest global professional network, transforming its system design 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 Upgrading 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 upgrade:

1. How much of your IT budget do you spend on legacy software maintenance or forced downtime due to a total or partial malfunction of your out-of-date system?

If the cost of keeping outdated technology is eating up important resources, it may be time for a more cost-effective solution.

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

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

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

Or are you having trouble finding mainframe programmers who can fix or extend your COBOL code? If so, your legacy system poses a security threat to your company and should be modernized.

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

Because if you can’t make the most of big data, you will not have the kind of business intelligence you need to be competitive. Goodbye, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system coincide with a spike in client support tickets and complaints?

With such a negative client experience, you will not attract new customers. It’s time for a modern 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 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—along with all the speed, flexibility, and scalability your CIOs have been promising with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Technology

Do like LinkedIn and a host of other leading organizations: redesign your legacy software architecture to enable greater agility and scalability.

4. Refine Your Legacy Systems

Retool your code to eliminate technical debt.

5. Rehost Your Legacy Systems

Adopt 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 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 solution without dramatically modifying the code or sacrificing functionality.

How Wave Can Assist with Your Legacy System Modernization in Anchorage?

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

That way, you’ll know whether your business can cope with a few legacy system modifications or if you require a complete digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can handle the needed modifications or replacements: from adding features that improve the user experience or streamlining workflows with automation and Business Intelligence solutions.

We will also offer you the continuous IT assistance you need to see the greatest return on your modernization investment.

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