1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as old as the IRS’ present systems (some date back 60 years!). But, revamping your legacy technology has been at the back of your mind A LOT lately.

Because it’s a cybersecurity hazard.

Because outdated platforms are increasing maintenance expenses while providing even less functionality every day.

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

We understand. You are ready for a legacy system modernization.

But how can you gain the necessary buy-in from key stakeholders—whether that is your business associate or the whole boardroom?

Continue reading for your legacy system checklist, this will help you determine when it’s ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems seeing as they are derived from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically critical to daily business workflows, points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 CRUCIAL.

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

It’s no surprise, then, that modernizing or replacing legacy systems with new technology, whether it be cloud computing, SaaS technology solutions, or on-premise installation is among the greatest challenges CIOs in small and large organizations face in their careers.

What Are the Advantages 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 “hurdles” could the modernization of your legacy systems expel?

Short answer, A LOT.

5 Key Benefits of Upgrading Your Legacy Systems

Whether you go for legacy system enhancements or a complete digital transformation, upgrading your legacy systems can assist you in future-proofing your organization:

1. Expedite Your Business Processes

A legacy system update, like the adoption of SaaS solutions, new business intelligence tools, or cloud computing, can enhance your workflow and other business processes.

It is not unusual for companies to spend more than half of their IT budget on supporting legacy systems, for example maintaining data hubs rather than performing a data migration to the cloud for support ticket management.

CIOs who’ve implemented technological improvements or even a comprehensive digital transformation have reduced operational costs in their organizations by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that the costs of maintaining legacy systems, infrastructure, and applications can account for a substantial percentage of the company’s budget.

In fact, companies in both private and public 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 Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can result in unplanned downtime for your business processes.

For airlines, IT systems outages can cause delays and even the cancellation of thousands of flights. It was a real issue for airlines. Obsolete technology is bad for business.

Your personnel undoubtedly resent the downtime and unsatisfactory user experience of the older technology as well. And once the technology in their hands has seen more advancements 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

When your current systems are so antiquated that their manufacturer no longer maintains them, they can constitute a serious security risk to your company.

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

Major mishaps happen with legacy systems regularly. Remember Equifax?

5. Make Your Business Processes More Agile for Better Scalability

A single integration to your legacy software here, a hotfix for your legacy software there. In no time, your organization is stumbling on a Frankenstein legacy system.

Your out-of-date systems barely handle multiple data types—let alone the massive amounts of data your IoT devices generate.

Revolutionary CIOs understand that legacy software upgrading is mandatory to refine the compatibility of their IT systems with modern technological solutions.

That is indeed what the CIOs at LinkedIn did as the organization was developing into the world’s largest professional network, transforming its system design from a REST API or an event-driven architecture.

CIOs for Unilever, SAP, Netflix, Amazon, and the Federal Aviation Administration have all taken the same approach.

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 six things to consider before any legacy system upgrade:

1. How much of your IT budget do you spend on maintenance costs for legacy software or forced downtime as a result of a total or partial breakdown of your out-of-date system?

If the cost of keeping obsolete systems are draining important resources, it may be time for a new, cost-effective platform.

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

Or is it inconvenient to integrate with a new SaaS solution or API? Because of obsolete technology or haphazard customization? If you answered “yes,” it’s time for a legacy system upgrade.

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

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

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

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

5. Does your legacy system’s failures, glitches, and forced downtimes 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 bite the bullet and adapt. The future is FAST. And it has arrived.

How Can I Upgrade My Legacy System?

If you’ve decided your legacy systems are no longer meeting your business needs, what are your modernization options?

1. Replace Your Legacy Systems

Out with the old, and in with the new system—along with all the speed, agility, and scalability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

Rewrite the legacy system, so you can incorporate modern technology 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. Refine Your Legacy Systems

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

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Data and Functions

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

8. Migrate Your Legacy Systems Application

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

How Wave Can Help with Your Legacy System Modernization in Dallas?

Think it’s time for your legacy system modernization? Begin with Wave’s thorough system audit, so you can learn about its performance and predicted lifespan.

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

Whatever the circumstance may be for your legacy systems, Wave can carry out the needed modifications or replacements: from adding features that improve the user experience or expediting workflows with automation and Business Intelligence tools.

We'll also provide you with the ongoing IT assistance you need to get the most out of your modernization investment.

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