1993 just called. It wants its IT systems back…

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

Because it poses a security risk.

Because antiquated systems are increasing maintenance expenses while delivering even less efficiency every day.

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

We get it. You are ready for a legacy system modernization.

But how can you gain the necessary buy-in from key stakeholders—whether that is your business partner or the whole boardroom?

Keep reading for your legacy system evaluation, 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 Legacy systems are outdated systems since they are derived from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually critical to daily business workflows, points out Gartner.

How important 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: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are ESSENTIAL.

However, the expenses of modernization (including botched modernization efforts) and maintenance of legacy systems are counterproductive, totaling $35 trillion for corporations and governments worldwide since 2010.

It’s no surprise, then, that upgrading or substituting legacy systems with innovative technology, whether SaaS technology solutions, cloud computing, or local implementation is one of the most difficult tasks CIOs in small and large companies encounter in their careers.

What Are the Benefits 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 remove?

Short answer, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

Whether you go for legacy system enhancements or an absolute digital transformation, your legacy system modernization can help you future-proof your firm:

1. Expedite Your Business Operations

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

It’s not unusual for organizations to expend over half of their IT budget on supporting legacy systems, for instance maintaining data hubs rather than executing a data migration to the cloud for support ticket management.

CIOs that have adopted technological improvements or perhaps a comprehensive digital transformation have lowered production expenditures in their businesses by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know the maintenance costs of legacy systems, applications, and infrastructure can eat up a substantial percentage of the organization’s budget.

As a matter of fact, companies in the public and private 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 Organization’s Customer Experience and Employee Retention

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

For airlines, IT systems instabilities can cause thousands of flights to be delayed or cancelled. It was a real problem for carriers. Outdated technology is bad for business.

Your staff undoubtedly loathe the downtime and awful user experience of the outdated technology as well. And when the tech in their hands has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your credibility.

4. Reduce Your Security Risk and Maintain Compliance

If your present systems are so antiquated that their provider no longer services them, they could constitute a severe security risk to your company.

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

Substantial failures happen with legacy systems frequently. Remember Equifax?

5. Make Your Business Operations More Agile for Higher Scalability

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

Your outdated technology barely handle numerous data types—much less the big data generated by your IoT devices.

Revolutionary CIOs know legacy software upgrading is mandatory to enhance the compatibility of their IT systems with new technological solutions.

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

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

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

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

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

1. What percentage of your IT budget is spent on maintenance costs for legacy software or forced downtime as a result of a full or partial malfunction of your old system?

If your cost of operating older technology is eating up major resources, it might be time for a cost-effective, new platform.

2. Do your legacy systems support newer tech and recent IT breakthroughs?

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

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

Or are you having a hard time finding mainframe programmers to fix or extend your COBOL code? If this is the case, your legacy system poses a serious threat to your organization and should be replaced.

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

Because if you can’t make the most of large data, you will not have the kind of business intelligence you need to stay competitive. Bye-bye, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes correspond with an increase 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 new system.

6. Is your legacy technology SLOW?

It might be time to bite the bullet and make a change. The future is approaching at a frenetic pace. And it has arrived.

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, flexibility, and expandability your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

Rewrite the legacy system, so you can implement new tech 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. Refine Your Legacy Systems

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

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Legacy Systems Functions and Data

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

8. Replatform Your Legacy Systems Application

Transfer your legacy systems application to a new run-time solution without extensively modifying the code or compromising functionality.

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

Do you believe it’s time to modernize your legacy system? Begin with Wave’s thorough system audit, so you can learn about its functionality and estimated lifespan.

That way, you’ll know whether you can get around with a few legacy system enhancements or if you require an extensive digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can handle the needed upgrades or replacements: from adding attributes that improve the customer experience or optimizing workflows with automation and Business Intelligence tools.

We will also provide you with the sustained IT support 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.