1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as old as the IRS’ current systems (some date back 60 years!). However, revamping your legacy system has been at the back of your mind A LOT recently.

Because it poses a security threat.

Because antiquated systems are increasing maintenance expenses while generating less and less capability every day.

Because you’re 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 support of primary stakeholders—whether that’s your business partner or the whole boardroom?

Keep reading for your legacy system evaluation, so you know when it’s time to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are outdated systems since they are based on older technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally vital to day-to-day 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: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are ESSENTIAL.

However, the modernization (including failed modernization efforts) and maintenance costs of keeping legacy systems are troublesome, totaling $35 trillion for enterprises and governments globally since 2010.

It’s no wonder, however, that upgrading or rebuilding legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or on-site deployment is among the greatest challenges CIOs in small and large companies encounter 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 “barriers” could the upgrading of legacy systems eliminate?

In a nutshell, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

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

1. Streamline Your Business Processes

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

It is not unusual for organizations to expend more than half of their IT budget on supporting legacy systems, for example maintaining data hubs instead of executing a data migration to the cloud for support ticket management.

CIOs who’ve applied technological advancements or even a comprehensive digital transformation have cut production expenditures in their businesses by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

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

Frankly, 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

Glitches and malfunctions in legacy systems can result in unforeseen downtime for your business workflows.

For airlines, IT systems instabilities can result in delays and even the cancellation of thousands of flights. It was a major issue for carriers. Outdated technology is bad for business.

Your personnel undoubtedly resent the downtime and poor user experience of the obsolete technology as well. And once the technology in their pockets has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Minimize Your Security Risk While Staying Compliant

If your present systems are so old their provider no longer maintains them, they could constitute a severe security risk to your business.

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

Big breakdowns occur with legacy systems frequently. Remember Equifax?

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

A single integration to your legacy system here, a hotfix for your legacy technology there. Before long, your company is clunking along on a Frankenstein legacy system.

Your outdated systems barely handle numerous data types—let alone the massive amounts of data your IoT devices generate.

Forward-looking CIOs realize that legacy software modernization is mandatory to improve IT system compatibility with modern technology solutions.

That’s exactly what the LinkedIn’s CIOs did when the organization was scaling into the world’s largest professional network, transforming its system 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 Upgrading My Legacy System? 6 Questions to Ask

CIOs must evaluate three primary factors when assessing if it is time to modernize legacy technology: technology, architecture, and functionality.

Below are some questions to ask before any legacy system upgrade:

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

If the cost of maintaining older systems are eating up considerable resources, it might be time for a new, cost-effective platform.

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

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

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

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

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

Because when you can’t make the most of big data, you will not have the business insight you need to stay competitive. Adieu, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches coincide with an uptick 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 modern system.

6. Is your legacy technology SLOW?

It may be time to jump in with both feet and make the change. The future is moving at a breakneck pace. And it has arrived.

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—with all the speed, flexibility, and expandability 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. Redesign Your Legacy Systems

Do as LinkedIn along with many other world-class firms have done: rearchitect your legacy software architecture to improve agility and scalability.

4. Reconfigure Your Legacy Systems

Retool your code to get rid of technical debt.

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

Encompass your functions and data in the application, so you can access them as services via an API.

8. Replatform Your Legacy Systems Application

Migrate your legacy systems application to a new run-time tool without drastically modifying the code or sacrificing functionality.

How Wave Can Help with Your Legacy System Modernization in Long Beach?

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

In this fashion, you’ll know whether your organization can get around with a few legacy system enhancements or if you need a comprehensive digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can handle the necessary modifications or replacements: from adding functionality that improves the customer experience or streamlining 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 is calling. And companyname is eager to help! Schedule a consultation today.