1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as outdated as the IRS’ existing systems (some are over 60 years old!).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

Because it presents a cybersecurity hazard.

Because antiquated platforms are increasing maintenance expenses while providing less and less efficiency every day.

Because you’re 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 primary stakeholders—whether that is your business partner or the entire boardroom?

Continue reading for your legacy system evaluation, 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 seeing as they are based on older technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally essential to daily business operations, 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 power 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 costs of modernization (including unsuccessful modernization efforts) and maintenance of legacy systems are cumbersome, totaling $35 trillion for enterprises and governments worldwide since 2010.

It’s no wonder, however, that modernizing or substituting legacy systems with new technology, whether SaaS technology solutions, cloud computing, or on-site implementation is among the most difficult tasks CIOs in small and large organizations confront in their careers.

What Are the Benefits of Updating 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 legacy system modernization eliminate?

To put it briefly, A LOT.

5 Significant Advantages of Legacy System Modernization

If you opt for legacy system enhancements or a complete digital transformation, modernizing your legacy systems can assist you in future-proofing your organization:

1. Streamline Your Business Processes

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

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

CIOs that have adopted technological advancements or perhaps a full-scale digital transformation have reduced production costs in their companies by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

CIOs well know the costs of maintaining legacy systems, infrastructure, and applications can demand a substantial percentage of the company’s budget.

In fact, businesses 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. Enhance 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 outages can cause delays and even the cancellation of thousands of flights. It was a major problem for airlines. Obsolete technology is bad for business.

Your employees certainly resent the downtime and poor user experience of the obsolete technology too. And once the tech in their pockets 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 and Maintain Compliance

If your existing systems are so old their manufacturer no longer maintains them, they could constitute a serious security risk to your organization.

Often neglected and outdated systems, your legacy software, doesn’t receive the security patches and updates it requires to avoid cybersecurity attacks.

Major breakdowns occur with legacy systems all the time. Remember Equifax?

5. Make Your Business Processes More Agile for Better Scalability

A single integration to your legacy system here, a hotfix for your legacy system there. Before you know it, your business is stumbling on a Frankenstein-style legacy system.

Your old technology can hardly handle numerous data types—much less the massive amounts of data generated by your IoT devices.

Revolutionary CIOs know legacy software upgrading is essential to improve the compatibility of their IT systems with modern technological solutions.

That’s exactly what the CIOs at LinkedIn did while the company was growing into the largest global professional network, moving its software design from a REST API or an event-driven architecture.

CIOs for Netflix, Unilever, SAP, the Federal Aviation Administration, and Amazon have all taken the same approach.

When Should I Replace My Legacy System? 6 Questions to Ask

Technology, architecture, and functionality are 3 major considerations for CIOs when deciding if it’s time for a legacy technology upgrade.

Below are some things to consider before upgrading any legacy system:

1. How much of your IT budget is spent on maintenance costs for legacy software or forced downtime due to a complete or partial breakdown of your outdated system?

If the cost of operating outdated technology is eating up important resources, it may be time for a new, cost-effective system.

2. Do your legacy systems work with the latest tech and recent IT innovations?

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

3. Has the vendor that originally designed your legacy system folded?

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

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

Because if you are unable to make the most of enormous data, you will not have the kind of business intelligence you need to be competitive. Bye-bye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches coincide with a spike 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 technology SLOW?

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

How Can I Upgrade 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 system—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 application components, so you can integrate modern technology solutions, business intelligence, and big data capacity.

3. Redesign Your Legacy Systems

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

Retool 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 Outdated Systems Data and Functions

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

8. Replatform Your Legacy Systems Application

Move your legacy systems application to a new run-time platform without extensively altering the code or sacrificing functionality.

How Wave Can Be of Assistance with Your Legacy System Modernization in Mesa?

Think it’s time for your legacy system modernization? Begin with Wave’s comprehensive system audit, so you can get insights into its functionality and predicted lifespan.

That way, you’ll know whether your company can get by with a few legacy system enhancements or if you need a comprehensive digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can perform the necessary modifications or replacements: from adding functionality that improves the user experience or optimizing processes with automation and Business Intelligence platforms.

We will also provide you with the sustained IT assistance you need to see the greatest return on your modernization investment.

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