1993 just called. It wants its IT systems back…

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

Because it is a security threat.

Because obsolete systems are costing more to maintain while generating even less functionality every day.

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

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

But how do you get the buy-in you need from key stakeholders—whether that’s your business partner or the entire boardroom?

Keep reading for your legacy system assessment, this will help you determine when it is ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems seeing as they are built from outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually vital to daily business workflows, points out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 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 VITAL.

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

It’s no surprise, then, that optimizing or substituting legacy systems with newer technology, whether it be cloud computing, SaaS technology solutions, or on-site installation is one of the most challenging issues CIOs in small and large organizations confront in their careers.

What Are the Advantages 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 “hurdles” could the modernization of your legacy systems expel?

Short answer, A LOT.

5 Essential Advantages of Legacy System Modernization

In the event that you go for legacy system enhancements or an absolute digital transformation, modernizing your legacy systems can assist you in future-proofing your company:

1. Expedite Your Business Operations

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

It is not unusual for businesses to waste more than half of their IT budget on sustaining legacy systems, for example maintaining data hubs rather than carrying out a data migration to the cloud for managing support tickets.

CIOs who’ve adopted technological improvements or perhaps a comprehensive digital transformation have reduced operational expenditures 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 business’s budget.

In fact, businesses 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. Improve Your Company’s Customer Experience and Employee Retention

Legacy technology glitches and failures can lead to unforeseen downtime for your organizational processes.

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

Your employees unquestionably resent the downtime and unsatisfactory user experience of the obsolete technology too. And once the technology in their hands has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Lower Your Security Risk While Staying Compliant

When your existing systems are so old their manufacturer no longer services them, they could pose a serious security risk to your company.

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

Substantial mishaps happen with legacy systems regularly. Remember Equifax?

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

A one-off integration to your legacy system here, a hotfix for your legacy software there. Before you know it, your organization is clunking along on a Frankenstein legacy system.

Your old technology barely handle numerous data types—much less the enormous amounts of data generated by your IoT devices.

Prospective CIOs realize that legacy software upgrading is essential to improve the compatibility of their IT systems with modern technological tools.

That is exactly what the LinkedIn’s CIOs did while the company was growing into the world’s largest professional network, transforming its software 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 Upgrading 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.

Here are six questions to keep in mind before upgrading any legacy system:

1. How much of your IT budget is spent on legacy software maintenance or forced downtime because of a full or partial breakdown of your old system?

If the cost of operating obsolete technology is draining major resources, it might be time for a new, cost-effective system.

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

Or is it inconvenient to integrate with a new SaaS solution or API? Because of obsolete technology or haphazard 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 who can fix or extend your COBOL code? If so, your legacy system is a potential risk to your business and should be replaced.

4. Is your legacy system capable of providing visibility into real-time data transfers and operational patterns?

Because if you are unable to make the most of enormous data, you won’t have the kind of business intelligence you need to be competitive. Goodbye, 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 might be time to jump in with both feet and make the change. The future is moving at a breakneck pace. And it’s here.

How Can I Upgrade 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 system—along with all the speed, agility, and versatility your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

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

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. Refactor Your Legacy Systems

Restructure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Functions and Data

Encapsulate your functions and data into the solution, so you can access them as services via an API.

8. Migrate Your Legacy Systems Application

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

How Wave Can Help with Your Legacy System Modernization in Houston?

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

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

Whatever the circumstance may be for your legacy systems, Wave can perform the necessary upgrades or replacements: from adding attributes that improve the user experience or optimizing processes with automation and Business Intelligence tools.

We will also give you the continuous IT support 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.