1993 just called. It wants its IT systems back…

Your legacy systems probably are not as outdated as the IRS’ existing systems (some are over 60 years old!). But, upgrading your legacy technology has been on your mind A LOT recently.

Because it’s a security hazard.

Because obsolete platforms are costing more to maintain while providing less and less capability every day.

Because you’re ready to level up your organization’s digital transformation.

We understand. You’re ready for a legacy system modernization.

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

Keep reading for your legacy system assessment, so you know when it is ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are antiquated systems since they are derived from older technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally vital to daily business processes, points out Gartner.

How relevant 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 public-sector infrastructure that we take for granted: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are ESSENTIAL.

Nevertheless, 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 wonder, then, that upgrading or rebuilding legacy systems with innovative technology, be it cloud computing, SaaS technology solutions, or on-premise installation is among the most difficult tasks CIOs in small and large businesses face in their careers.

What Are the Perks 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 “obstacles” could the upgrading of legacy systems expel?

In a nutshell, A LOT.

5 Essential Advantages of Upgrading Your Legacy Systems

In the event that you opt for legacy system enhancements or a complete digital transformation, upgrading your legacy systems can assist you in future-proofing your organization:

1. Streamline Your Business Processes

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

It is not out of the ordinary for businesses to spend over half of their IT budget on backing legacy systems, such as maintaining data hubs instead of performing a data migration to the cloud for support ticket management.

CIOs who’ve adopted technological advancements or even a full-blown digital transformation have lowered operational costs in their companies by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

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

In fact, companies in both public and private sectors spent $26.25 trillion in legacy IT systems operations and maintenance costs over the 11 years spanning 2010 to 2021.

3. Enhance Your Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems might cause unforeseen downtime for your organizational operations.

For airlines, IT systems faults can cause delays and even the cancellation of thousands of flights. It was a serious issue for airlines. Obsolete systems are bad for business.

Your staff certainly resent the downtime and poor user experience of the obsolete technology too. And when the technology in their hands has developed quicker in the last decade than your IT systems—it’s time for an upgrade. For your credibility.

4. Lower Your Security Risk While Staying Compliant

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

Your legacy software, which is frequently ignored and out of date, doesn’t receive the security patches and updates it needs to prevent cybersecurity breaches.

Major breakdowns happen with legacy systems regularly. Remember Equifax?

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

A single integration to your legacy system here, a hotfix for your legacy system there. Before you know it, your firm is clunking along on a Frankenstein legacy system.

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

Revolutionary CIOs realize that legacy software modernization is necessary to enhance IT system compatibility with innovative technological solutions.

That is indeed what the CIOs at LinkedIn did as the company was scaling into the world’s premier professional network, moving its software design from a REST API or an event-driven architecture.

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

When Should I Consider Replacing 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.

Here are six questions to ask before any legacy system modernization:

1. What percentage of your IT budget are you spending on maintenance costs for legacy software or forced downtime due to a full or partial breakdown of your outdated system?

If your cost of maintaining obsolete systems are eating up important resources, it may be time for a new, cost-effective platform.

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

Or is it a pain to integrate with a new SaaS service or API? Because of too much old 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 difficulty locating mainframe programmers who can fix or extend your COBOL code? If this is the case, your legacy system introduces a potential risk to your organization and should be modernized.

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

Because if you can’t take advantage of enormous data, you won’t have the business insight you need to stay competitive. Goodbye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches correspond with an uptick in customer complaints and support tickets?

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 might be time to take the plunge and adapt. The future is approaching at a frenetic pace. And it’s here.

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

2. Rebuild Your Legacy Systems

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

3. Rearchitect 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. Refactor Your Legacy Systems

Restructure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

Employ 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 in the application, so that they may be accessed as services via an API.

8. Migrate Your Legacy Systems Application

Transfer your legacy systems program to a new run-time tool without dramatically altering the code or compromising functionality.

How Wave Can Assist with Your Legacy System Upgrade in Lincoln?

Do you believe it’s time for your legacy system modernization? Start with Wave’s extensive system audit, so you can get insights into its functionality and estimated lifespan.

In this fashion, you’ll know whether your company can cope 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 carry out the required modifications or replacements: from adding features that improve the customer experience or expediting workflows with automation and Business Intelligence tools.

We will also give you the ongoing IT assistance you need to maximize your modernization investment.

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