1993 just called. It wants its IT systems back…

Your legacy systems probably aren’t as old as the IRS’ current systems (some are over 60 years old!). Still, modernizing your legacy technology has been at the back of your mind A LOT recently.

Because it presents a security hazard.

Because outdated systems are increasing maintenance expenses while delivering even less efficiency every day.

Because you are ready to take your organization'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 primary stakeholders—whether that is your business partner or the entire boardroom?

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

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are outdated systems because they are derived from older technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually vital 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 drive public-sector infrastructure that we take for granted: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are CRUCIAL.

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

It’s no wonder, then, that modernizing or rebuilding legacy systems with newer technology, whether it be SaaS technology solutions, cloud computing, or on-premise implementation is one of the greatest challenges CIOs in small and large firms 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 remove?

Short answer, A LOT.

5 Significant Benefits of Legacy System Modernization

In the event that you go for legacy system enhancements or a comprehensive digital transformation, your legacy system modernization can assist you in future-proofing your organization:

1. Streamline Your Business Processes

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

It’s not uncommon for businesses to expend over half of their IT budget on sustaining legacy systems, for example maintaining data centers instead of performing a data migration to the cloud for managing support tickets.

CIOs that have applied technological advancements or perhaps a full-blown digital transformation have reduced production costs in their organizations by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know legacy system, application, and infrastructure maintenance can account for a large percentage of the business’s budget.

As a matter of fact, organizations 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. Enhance Your Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can result in unplanned downtime for your business workflows.

If you’re an air carrier, IT systems instabilities can cause thousands of flights to be delayed or cancelled. It was a real concern for carriers. Obsolete technology is bad for business.

Your personnel unquestionably dislike the downtime and unsatisfactory user experience of the obsolete technology too. And once the technology in their hands has developed quicker in the last decade than your IT systems—it’s time for an upgrade. For your reputation.

4. Lower Your Security Risk and Maintain Compliance

If your existing systems are so old their provider no longer maintains them, they could pose a serious security risk to your company.

Frequently ignored and out of date, your legacy software, does not receive the security patches and updates it needs to avoid cybersecurity breaches.

Big mishaps happen with legacy systems frequently. Remember Equifax?

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

A one-time integration to your legacy software here, a hotfix for your legacy system there. In no time, your firm is clunking along on a Frankenstein-style legacy system.

Your out-of-date technology are incapable of handling various data formats—not to mention the big data your IoT devices produce.

Prospective CIOs know legacy software upgrading is mandatory to enhance IT system compatibility with modern technological solutions.

That is exactly what the CIOs at LinkedIn did while the firm was scaling into the world’s largest professional network, converting 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 Ask

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

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

1. How much of your IT budget are you spending on maintenance costs for legacy software or forced downtime due to a complete or partial breakdown of your out-of-date system?

If the cost of keeping obsolete systems are depleting considerable resources, it might be time for a new, cost-effective solution.

2. Do your legacy systems support the latest technology and recent IT advancements?

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

3. Is your legacy system's original developer no longer in business?

Or are you having trouble sourcing mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system is a serious threat to your company and should be upgraded.

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

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

5. Do glitches, failures, and forced downtimes with your old system 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 fresh system.

6. Is your legacy technology SLOW?

It might be time to jump in with both feet and adapt. The future is FAST. And it’s here.

How Can I Modernize 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—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 incorporate new tech solutions, business intelligence, and big data capacity.

3. Rearchitect 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. Reconfigure Your Legacy Systems

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

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

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

8. Migrate Your Legacy Systems Application

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

How Wave Can Assist with Your Legacy System Upgrade in St. Petersburg?

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

In this fashion, you’ll know whether your company can get around with a few legacy system modifications or if you need a comprehensive 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 customer experience or simplifying workflows with automation and Business Intelligence platforms.

We'll also offer you the ongoing IT assistance you need to maximize your modernization investment.

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