1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as outdated as the IRS’ current systems (some date back 60 years!). However, modernizing your legacy technology has been on your mind A LOT recently.

Because it presents a cybersecurity hazard.

Because outdated platforms are costing more to maintain while providing even less functionality every day.

Because you are ready to level up your organization’s digital transformation.

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

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

Keep reading for your legacy system assessment, 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. Oftentimes, legacy systems are outdated systems since they are built from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically critical to everyday business workflows, points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: power grids, telecommunications services, wastewater treatment plants, 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 enterprises and governments worldwide since 2010.

It’s no surprise, then, that optimizing or substituting legacy systems with newer technology, be it SaaS technology solutions, cloud computing, or local installation is among the greatest challenges CIOs in small and large companies face 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 “barriers” could the modernization of your legacy systems remove?

In a nutshell, A LOT.

5 Significant Advantages of Modernizing Your Legacy Systems

In the event that you go for legacy system enhancements or an absolute digital transformation, modernizing your legacy systems can assist you in future-proofing your company:

1. Optimize Your Business Operations

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

It’s not uncommon for companies to expend more than half of their IT budget on sustaining legacy systems, for instance maintaining data centers rather than carrying out a data migration to the cloud for managing support tickets.

CIOs who’ve adopted technological improvements or even a full-scale digital transformation have reduced production expenditures in their companies 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 account for a substantial percentage of the company’s budget.

In fact, businesses 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. Improve Your Organization’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology might cause unplanned downtime for your organizational processes.

For airlines, IT systems outages can cause thousands of flights to be delayed or cancelled. It was a real problem for airlines. Obsolete technology is bad for business.

Your staff unquestionably dislike the downtime and unsatisfactory user experience of the outdated technology too. And when the tech in their hands has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Reduce Your Security Risk While Maintaining Compliance

If your current systems are so antiquated that their provider no longer maintains them, they could constitute a major security risk to your organization.

Your legacy software, which is frequently ignored and out of date, does not receive the security updates and patches it needs to block cybersecurity attacks.

Big failures occur with legacy systems regularly. Remember Equifax?

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

A one-off integration to your legacy system here, a hotfix for your legacy technology there. Before long, your company is stumbling on a Frankenstein legacy system.

Your old technology barely handle multiple data formats—much less the enormous amounts of data your IoT devices generate.

Prospective CIOs understand that legacy software upgrading is essential to enhance the compatibility of their IT systems with modern technological tools.

That is indeed what the LinkedIn’s CIOs did while the firm was developing into the world’s largest professional network, converting its system 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 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.

Here are six questions to ask before upgrading any legacy system:

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

If the cost of operating obsolete technology is depleting important resources, it might be time for a cost-effective, new system.

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

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

Or are you having a hard time locating mainframe programmers who can fix or extend your COBOL code? If so, your legacy system introduces a serious risk to your organization and should be modernized.

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

Because when you are unable to make the most of enormous data, you will not have the business insight you need to stay competitive. Bye-bye, legacy systems.

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

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

6. Is your legacy system SLOW?

It may be time to take the plunge and make a change. The future is moving at a breakneck pace. And it’s here.

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

2. Rebuild Your Legacy Software

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

3. Rearchitect 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. Reconfigure Your Legacy Systems

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

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Legacy Systems Data and Functions

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

8. Migrate Your Legacy Systems Application

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

How Wave Can Assist with Your Legacy System Modernization in Spokane?

Do you believe it’s time to modernize your legacy system? Begin with Wave’s extensive system audit, so you can get insights into its functionality and expected lifespan.

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

Whatever the case proves to be for your legacy systems, Wave can perform the required upgrades or replacements: from adding attributes that improve the customer experience or simplifying workflows with automation and Business Intelligence solutions.

We will also give you the ongoing IT assistance you need to see the greatest return on your modernization investment.

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