1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as old as the IRS’ current systems (some date back 60 years!). Still, revamping your legacy technology has been on your mind A LOT lately.

Because it is a cybersecurity threat.

Because outdated systems are increasing maintenance expenses while delivering even less functionality every day.

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

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

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

Continue reading for your legacy system checklist, this will help you determine when it’s the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are obsolete systems because they are built from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically essential to daily business workflows, points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 power 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 ESSENTIAL.

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

It’s no wonder, however, that upgrading or replacing legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or on-premise installation is one of the most difficult tasks CIOs in small and large firms encounter in their careers.

What Are the Benefits 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 legacy system modernization eliminate?

In a nutshell, A LOT.

5 Significant Benefits of Legacy System Modernization

If you choose a legacy system enhancements or a comprehensive digital transformation, modernizing your legacy systems can assist you in future-proofing your company:

1. Streamline Your Business Processes

A legacy system upgrade, like the implementation of SaaS platforms, new business intelligence software, or cloud computing, can improve efficiencies in your workflow and other business processes.

It’s not out of the ordinary for businesses to waste more than half of their IT budget on supporting legacy systems, for instance maintaining data centers instead of carrying out a data migration to the cloud for support ticket management.

CIOs that have adopted technological improvements or even a comprehensive digital transformation have reduced operational expenditures in their companies by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that legacy system, application, and infrastructure maintenance can account for a substantial percentage of the business’s budget.

In fact, organizations in both 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

Legacy technology glitches and failures can result in unplanned downtime for your business processes.

For airlines, IT systems faults can cause thousands of flights to be delayed or cancelled. It was a major problem for airlines. Obsolete systems are bad for business.

Your staff unquestionably resent the downtime and awful user experience of the obsolete technology too. And when the tech in their pockets has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your image.

4. Lower Your Security Risk and Stay Compliant

If your existing systems are so outdated that their manufacturer no longer supports them, they can constitute a severe security risk to your company.

Your legacy software, which is frequently ignored and out of date, does not receive the security patches and updates it requires to prevent cybersecurity breaches.

Big breakdowns occur with legacy systems all the time. Remember Equifax?

5. Make Your Business Operations More Agile for Better Scalability

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

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

Revolutionary CIOs know legacy software modernization is essential to refine the compatibility of their IT systems with innovative technology solutions.

That is exactly what the CIOs at LinkedIn did while the company was growing into the world’s largest professional network, transforming its software design from a REST API or an event-driven architecture.

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

When Should I Replace 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 a few questions to keep in mind before any legacy system modernization:

1. How much of your IT budget do you spend on legacy software maintenance or forced downtime because of a complete or partial malfunction of your out-of-date system?

If your cost of operating outdated technology is depleting considerable resources, it might be time for a cost-effective, new system.

2. Do your legacy systems support modern tech and recent IT advancements?

Or is it inconvenient to integrate with a new SaaS solution or API? Because of outdated technology or ad-hoc customization? If you answered “yes,” it is time to upgrade your legacy system.

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

Or are you having trouble finding mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system poses a security risk to your organization and should be replaced.

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

Because when you can’t make the most of large data, you will not have the kind of business intelligence you need to be competitive. Adieu, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes coincide with an increase in customer complaints and support tickets?

With such a poor customer experience, you won’t bring in new customers. It’s time for a new system.

6. Is your legacy system SLOW?

It may be time to jump in with both feet and make a change. The future is FAST. 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—along with all the speed, flexibility, and scalability your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

Rewrite the legacy system, so you can implement new technology solutions, big data capacity, and business intelligence.

3. Redesign Your Legacy Technology

Redesign your legacy software architecture to provide more agility and scalability, as LinkedIn and a slew of other outstanding firms have done.

4. Refactor Your Legacy Systems

Restructure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Legacy Systems Data and Functions

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

8. Replatform Your Legacy Systems Application

Migrate your legacy systems program to a new run-time platform without drastically modifying the code or losing functionality.

How Wave Can Be of Assistance with Your Legacy System Upgrade in Omaha?

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

In this fashion, you’ll know whether your business can cope with a few legacy system tweaks or if you require an extensive digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can handle the needed modifications or replacements: from adding functionality that improves the user experience or optimizing workflows with automation and Business Intelligence tools.

We'll also offer you the continuous IT support you need to see the greatest return on your modernization investment.

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