1993 just called. It wants its IT systems back…

Your legacy systems probably are not as outdated as the IRS’ existing systems (some are over 60 years old!). However, modernizing your legacy technology has been on your mind A LOT nowadays.

Because it presents a cybersecurity risk.

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

Because you are 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 necessary buy-in from key stakeholders—whether that’s your business associate or the entire boardroom?

Continue reading for your legacy system assessment, this will help you determine when it is ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems seeing as they are based on outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually critical to daily business workflows, points out Gartner.

How essential 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 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 CRUCIAL.

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

It’s no wonder, however, that modernizing or replacing legacy systems with newer technology, whether SaaS technology solutions, cloud computing, or on-site implementation is one of the greatest challenges CIOs in small and large firms face in their careers.

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

In a nutshell, A LOT.

5 Significant Benefits of Legacy System Modernization

In the event that you go for legacy system enhancements or a comprehensive digital transformation, upgrading your legacy systems can assist you in future-proofing your business:

1. Optimize Your Business Operations

A legacy system update, like the implementation of SaaS solutions, modern business intelligence platforms, or cloud computing, can refine your workflow and other business processes.

It is not unusual for businesses to waste over half of their IT budget on sustaining legacy systems, for example maintaining data hubs instead of carrying out a data migration to the cloud for managing support tickets.

CIOs who’ve implemented technological upgrades or even a full-scale digital transformation have reduced operational expenditures in their businesses by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

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

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

3. Enhance Your Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can lead to unforeseen downtime for your business operations.

For airlines, IT systems instabilities can result in thousands of flights to be delayed or cancelled. It was a real issue for carriers. Obsolete technology is bad for business.

Your personnel certainly dislike the downtime and unsatisfactory user experience of the older technology as well. And when the technology in their hands has developed quicker in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Lower Your Security Risk and Maintain Compliance

If your current systems are so antiquated that their original vendor no longer supports them, they could pose a serious security risk to your business.

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

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

5. Make Your Business Operations More Agile for Higher Scalability

A one-time integration to your legacy system here, a hotfix for your legacy technology there. Before you know it, your organization is clunking along on a Frankenstein-style legacy system.

Your out-of-date technology are incapable of handling numerous data formats—not to mention the big data produced by your IoT devices.

Prospective CIOs understand that legacy software upgrading is essential to improve the compatibility of their IT systems with innovative technology platforms.

That’s exactly what the LinkedIn’s CIOs did as the firm was growing into the world’s largest professional network, converting its software 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 Contemplate

CIOs must evaluate three primary factors when assessing if it is time to modernize legacy technology: technology, architecture, and functionality.

Here are some things to consider before any legacy system upgrade:

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

If your cost of keeping older technology is draining major resources, it might be time for a more cost-effective solution.

2. Do your legacy systems support the latest technology and recent IT breakthroughs?

Or is it a pain to integrate with a new SaaS service or API? Because of too much old technology or ad-hoc customization? If you answered “yes,” it’s time to modernize your legacy system.

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

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

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

Because if you are unable to make the most of large data, you won’t have the kind of business intelligence you need to stay competitive. Goodbye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches 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 system SLOW?

It might be time to take the plunge and make the change. The future is approaching at a frenetic pace. And it’s here.

How Can I Revamp My Legacy System?

What are your modernization alternatives if you've determined that your legacy systems no longer fulfill your company needs?

1. Replace Your Legacy Systems

Out with the old, and in with the new system—with all the speed, efficiency, and versatility your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

Rewrite the software components, so you can integrate modern technology solutions, big data capacity, and business intelligence.

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. Refine Your Legacy Systems

Reconfigure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Legacy Systems Functions and Data

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

8. Replatform Your Legacy Systems Application

Transfer your legacy systems application to a new run-time solution without drastically modifying the code or sacrificing functionality.

How Wave Can Help with Your Legacy System Upgrade in Madison?

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

That way, you’ll know whether your company can get around with a few legacy system enhancements or if you require an extensive digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can handle the required upgrades or replacements: from adding attributes that improve the customer experience or optimizing processes with automation and Business Intelligence platforms.

We'll also offer you the continuous IT assistance you need to get the most out of your modernization investment.

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