1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as outdated as the IRS’ existing systems (some date back 60 years!). Still, modernizing your legacy technology has been on your mind A LOT recently.

Because it is a cybersecurity hazard.

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

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

We understand. You’re ready for a legacy system modernization.

But how do you get the buy-in you need from primary stakeholders—whether that is your business associate 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. Oftentimes, legacy systems are antiquated systems because they are derived from antiquated technology; however, legacy systems, despite their age, limited functionality, and security risk, are typically essential to everyday business workflows, points out Gartner.

How important 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 drive the infrastructure we take for granted in the public sector: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are VITAL.

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

It’s no surprise, then, that optimizing or rebuilding legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or local installation is among the most difficult tasks CIOs in small and large businesses 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 the upgrading of legacy systems eliminate?

In a nutshell, A LOT.

5 Essential Advantages of Legacy System Modernization

In the event that you opt for legacy system enhancements or a complete digital transformation, modernizing your legacy systems can assist you in future-proofing your firm:

1. Optimize Your Business Processes

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

It is not out of the ordinary for businesses to expend more than half of their IT budget on supporting legacy systems, such as maintaining data centers instead of carrying out a data migration to the cloud for managing support tickets.

CIOs who’ve applied technological advancements or perhaps a full-scale digital transformation have lowered operational costs in their companies by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

CIOs are well aware that legacy system, application, and infrastructure maintenance can eat up a large percentage of the business’s budget.

In fact, organizations in the private and public sectors spent $26.25 trillion in legacy IT systems operations and maintenance costs over the 11 years spanning 2010 to 2021.

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

Legacy technology glitches and failures can lead to unexpected downtime for your organizational processes.

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

Your personnel undoubtedly loathe the downtime and unsatisfactory user experience of the older technology too. And when the tech in their pockets has advanced faster in the last decade than your IT systems—it’s time to upgrade. For your reputation.

4. Minimize Your Security Risk While Maintaining Compliance

When your current systems are so antiquated that their manufacturer no longer services them, they can pose a severe security risk to your organization.

Often neglected and outdated systems, your legacy software, doesn’t receive the security patches and updates it requires to prevent cybersecurity threats.

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

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

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

Your outdated systems barely handle numerous data types—much less the big data your IoT devices produce.

Forward-looking CIOs realize that legacy software modernization is essential to improve IT system compatibility with modern technological platforms.

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

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

When Should I Upgrade 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 things to consider before upgrading any legacy system:

1. How much of your IT budget are you spending on maintenance costs for legacy software or forced downtime as a result of a complete or partial malfunction of your outdated system?

If your cost of keeping obsolete systems are eating up major resources, it may be time for a new, cost-effective solution.

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

Or is integration with a new SaaS solution or API a nightmare? Because of obsolete technology or ad-hoc customization? If you answered “yes,” it is time to modernize your legacy system.

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

Or are you having a hard time locating mainframe programmers to extend or fix your COBOL code? If this is the case, your legacy system is a security threat to your business and should be upgraded.

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 big 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 a spike 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 modern system.

6. Is your legacy technology SLOW?

It might be time to take the plunge and make a change. The future is approaching at a frenetic pace. 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, efficiency, and versatility your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign Your Legacy Systems

Do like LinkedIn and a host of other leading organizations: redesign your legacy software architecture to enable greater agility and scalability.

4. Reconfigure Your Legacy Systems

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

5. Rehost Your Legacy Systems

Utilize cloud computing with a data migration and application re-deployment to cloud infrastructure.

7. Digest Your Outdated Systems Data and Functions

Incorporate 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 application to a new run-time platform without dramatically modifying the code or losing functionality.

How Wave Can Help with Your Legacy System Modernization in Jersey City?

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

In this way, you’ll know whether your company can get by with a few legacy system enhancements or if you need a comprehensive digital transformation now.

Whatever the situation may be for your legacy systems, Wave can perform the needed modifications or replacements: from adding attributes that improve the customer experience or simplifying workflows with automation and Business Intelligence tools.

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

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