1993 just called. It wants its IT systems back…

Perhaps your legacy systems are not as old as the IRS’ present systems (some are over 60 years old!). However, upgrading your legacy system has been at the back of your mind A LOT lately.

Because it is a cybersecurity risk.

Because obsolete systems are increasing maintenance expenses while providing even less efficiency every day.

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

We get it. You’re ready for a legacy system modernization.

But how can you gain the support of key stakeholders—whether that’s your business associate or the whole boardroom?

Keep reading for your legacy system evaluation, 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 Legacy systems are antiquated systems because they are derived from outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are typically critical to daily business operations, points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 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 VITAL.

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

It’s no surprise, then, that modernizing or rebuilding legacy systems with newer technology, whether it be cloud computing, SaaS technology solutions, or local installation is one of the most difficult tasks CIOs in small and large organizations face in their careers.

What Are the Perks of Updating 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 “obstacles” could the upgrading of legacy systems expel?

To put it briefly, A LOT.

5 Essential Advantages of Legacy System Modernization

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

1. Expedite Your Business Operations

A legacy system modernization, such as the implementation of SaaS solutions, modern business intelligence software, or cloud computing, can improve efficiencies in your workflow and other business processes.

It’s not uncommon for organizations to expend over half of their IT budget on backing legacy systems, such as maintaining data hubs instead of carrying out a data migration to the cloud for managing support tickets.

CIOs that have implemented technological upgrades or perhaps a full-blown digital transformation have reduced operational costs in their companies 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 significant percentage of the organization’s budget.

In fact, companies in the 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

Glitches and malfunctions in legacy technology might cause unexpected downtime for your organizational operations.

For airlines, IT systems outages can cause delays and even the cancellation of thousands of flights. It was a real problem for airlines. Outdated systems are bad for business.

Your staff certainly dislike the downtime and awful user experience of the older technology as well. And once the technology in their pockets has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your reputation.

4. Minimize Your Security Risk While Staying Compliant

When your existing systems are so outdated that their manufacturer no longer supports them, they could constitute a major security risk to your organization.

Often neglected and outdated systems, your legacy software, doesn’t receive the security updates and patches it needs to block cybersecurity attacks.

Substantial mishaps happen with legacy systems regularly. Remember Equifax?

5. Make Your Business Operations More Agile for Greater Scalability

A one-time integration to your legacy system here, a hotfix for your legacy technology there. In no time, your organization is clunking along on a Frankenstein-style legacy system.

Your out-of-date technology are incapable of handling multiple data formats—let alone the enormous amounts of data generated by your IoT devices.

Innovative CIOs know legacy software upgrading is essential to enhance IT system compatibility with innovative technology solutions.

That is exactly what the LinkedIn’s CIOs did as the organization was growing into the world’s premier 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 Upgrade My Legacy System? 6 Questions to Ponder

Technology, architecture, and functionality are 3 major considerations for CIOs when deciding if it’s time for a legacy technology upgrade.

Below are some questions to ask before any legacy system upgrade:

1. What percentage of your IT budget is spent on maintenance costs for legacy software or forced downtime because of a total or partial breakdown of your outdated system?

If your cost of keeping obsolete technology is depleting considerable resources, it might be time for a new, cost-effective platform.

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

Or is it a pain to integrate with a new SaaS service or API? Because of outdated technology or haphazard customization? If you answered “yes,” it’s time to upgrade your legacy system.

3. Is your legacy system's original developer no longer in business?

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

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

Because if you are unable to leverage big data, you won’t have the kind of business intelligence you need to be competitive. Adieu, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system correspond with an uptick in client complaints and support tickets?

With such a negative client experience, you will not attract new customers. It’s time for a new system.

6. Is your legacy system SLOW?

It may be time to take the plunge and make a change. The future is FAST. 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—with all the speed, flexibility, and expandability 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 integrate modern technology solutions, big data capacity, and business intelligence.

3. Rearchitect 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. Reconfigure Your Legacy Systems

Retool your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Legacy Systems Data and Functions

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

8. Migrate Your Legacy Systems Application

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

How Wave Can Be of Assistance with Your Legacy System Modernization in Los Angeles?

Think it’s time to modernize your legacy system? Start with Wave’s extensive system audit, so you can get insights into its performance and expected lifespan.

In this fashion, 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 needed modifications or replacements: from adding features that improve the user experience or optimizing processes with automation and Business Intelligence solutions.

We will also provide you with the sustained 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.