1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as outdated as the IRS’ existing systems (some date back 60 years!). Still, revamping your legacy system has been on your mind A LOT nowadays.

Because it is a security hazard.

Because obsolete platforms are costing more to maintain while delivering even less capability every day.

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

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

But how do you get the buy-in you need from important stakeholders—whether that is your business associate or the entire boardroom?

Keep 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 because they are derived from older technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually essential to day-to-day business operations, points out Gartner.

How important 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 fuel 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 ESSENTIAL.

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

It’s no wonder, then, that upgrading or replacing legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or on-premise installation is one of the greatest challenges CIOs in small and large firms confront 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 “obstacles” could the upgrading of legacy systems eliminate?

To put it briefly, A LOT.

5 Key Benefits of Legacy System Modernization

Whether you go for legacy system enhancements or an absolute digital transformation, your legacy system modernization can help you future-proof your business:

1. Optimize Your Business Operations

A legacy system upgrade, such as the deployment of SaaS platforms, new business intelligence platforms, or cloud computing, can improve efficiencies in your workflow and other business operations.

It’s not unusual for organizations to waste over half of their IT budget on supporting legacy systems, such as maintaining data hubs rather than performing a data migration to the cloud for support ticket management.

CIOs who’ve adopted technological advancements or perhaps a full-blown digital transformation have cut production expenses in their companies by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know the costs of maintaining legacy systems, infrastructure, and applications can demand a large percentage of the company’s budget.

Frankly, organizations 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 Company’s Customer Experience and Employee Retention

Legacy technology glitches and failures can result in unexpected downtime for your organizational workflows.

If you’re an air carrier, IT systems faults can cause delays and even the cancellation of thousands of flights. It was a real issue for airlines. Outdated systems are bad for business.

Your staff certainly dislike the downtime and awful user experience of the older technology too. And once the technology in their pockets has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your credibility.

4. Minimize Your Security Risk While Staying Compliant

If your existing systems are so old their manufacturer no longer services them, they could constitute a severe security risk to your company.

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

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

5. Make Your Business Operations More Agile for Greater Scalability

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

Your out-of-date technology barely handle various data types—much less the massive amounts of data produced by your IoT devices.

Prospective CIOs realize that legacy software modernization is necessary to enhance IT system compatibility with innovative technological solutions.

That is indeed what the LinkedIn’s CIOs did while the company was developing into the world’s premier professional network, moving its software architecture 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 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.

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

1. How much of your IT budget is spent on legacy software maintenance or forced downtime as a result of a total or partial malfunction of your old system?

If the cost of operating older systems are draining major resources, it might be time for a new, cost-effective platform.

2. Do your legacy systems work with modern technology and recent IT innovations?

Or is integration with a new SaaS solution or API a nightmare? Because of outdated technology or haphazard customization? If you answered “yes,” it is time to upgrade your legacy system.

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

Or are you having trouble sourcing mainframe programmers who can extend or fix your COBOL code? If so, your legacy system poses a serious risk to your business and should be upgraded.

4. Is your legacy system capable of providing insight into real-time data transfers and operational patterns?

Because when you can’t take advantage of big data, you won’t have the business insight you need to stay competitive. Goodbye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches coincide with an uptick in client support tickets and complaints?

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

6. Is your legacy system SLOW?

It may be time to jump in with both feet and adapt. The future is moving at a breakneck pace. And it’s here.

How Can I Modernize My Legacy System?

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

1. Replace Your Legacy Systems

Out with the old, and in with the new system—with all the speed, efficiency, and scalability 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, business intelligence, and big data capacity.

3. Redesign 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

Restructure your code to eliminate 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

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

8. Replatform Your Legacy Systems Application

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

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

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

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

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

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

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