1993 just called. It wants its IT systems back…

Perhaps your legacy systems aren’t as outdated as the IRS’ present systems (some date back 60 years!). Still, upgrading your legacy system has been on your mind A LOT lately.

Because it’s a cybersecurity risk.

Because outdated systems are costing more to maintain while providing less and less functionality every day.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 can you gain the support of important stakeholders—whether that is your business partner or the entire boardroom?

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

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems because they are derived from older technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually vital to everyday business operations, points out Gartner.

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

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

It’s no wonder, then, that optimizing or substituting legacy systems with newer technology, be it cloud computing, SaaS technology solutions, or on-premise deployment is among the greatest challenges CIOs in small and large companies encounter in their careers.

What Are the Perks 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 expel?

To put it briefly, A LOT.

5 Significant Benefits of Modernizing Your Legacy Systems

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

1. Optimize Your Business Operations

A legacy system upgrade, like the deployment of SaaS tools, modern business intelligence platforms, or cloud computing, can improve efficiencies in your workflow and other business operations.

It’s not out of the ordinary for businesses to waste more than half of their IT budget on sustaining legacy systems, such as maintaining data centers instead of executing a data migration to the cloud for managing support tickets.

CIOs that have adopted technological improvements or even a full-scale digital transformation have cut production expenditures in their organizations by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

CIOs well know the costs of maintaining legacy systems, infrastructure, and applications can eat up a large 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-year period from 2010 to 2021.

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

Glitches and malfunctions in legacy systems might cause unplanned downtime for your business operations.

If you’re an air carrier, IT systems instabilities can result in thousands of flights to be delayed or cancelled. It was a real concern for airlines. Obsolete systems are bad for business.

Your staff certainly resent the downtime and poor user experience of the outdated technology as well. And when the technology in their pockets has seen more advancements in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Reduce Your Security Risk and Stay Compliant

When your existing systems are so outdated that their manufacturer no longer services them, they could constitute a serious security risk to your business.

Frequently ignored and out of date, your legacy software, does not receive the security updates and patches it requires to block cybersecurity threats.

Substantial mishaps happen with legacy systems all the time. Remember Equifax?

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

A one-time integration to your legacy system here, a hotfix for your legacy software there. Before long, your business is clunking along on a Frankenstein legacy system.

Your old systems are incapable of handling numerous data types—not to mention the enormous amounts of data your IoT devices generate.

Revolutionary CIOs realize that legacy software upgrading is mandatory to enhance the compatibility of their IT systems with new technology solutions.

That is exactly what the CIOs at LinkedIn did as the company was developing into the world’s premier professional network, transforming its system architecture 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

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

Below are a few questions to ask before any legacy system modernization:

1. How much 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 outdated system?

If the cost of keeping outdated systems are draining major resources, it might be time for a more cost-effective platform.

2. Do your legacy systems offer compatibility with the latest technology and recent IT breakthroughs?

Or is it inconvenient to integrate with a new SaaS solution or API? Because of too much old technology or haphazard customization? If you answered “yes,” it is time to upgrade your legacy system.

3. Is the vendor who designed your legacy system no longer in business?

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

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

Because if you can’t leverage big data, you will not have the business insight you need to be competitive. Bye-bye, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system correspond with a spike in client 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 may be time to jump in with both feet and make a change. The future is FAST. And it has arrived.

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—along with all the speed, flexibility, and expandability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign Your Legacy Technology

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

4. Refine Your Legacy Systems

Restructure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Data and Functions

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

8. Replatform Your Legacy Systems Application

Move your legacy systems program to a new run-time solution without drastically altering the code or compromising functionality.

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

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

In this way, you’ll know whether your business can cope with a few legacy system modifications or if you need a complete digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can carry out the required upgrades or replacements: from adding functionality that improves the customer experience or simplifying workflows with automation and Business Intelligence solutions.

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

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