1993 just called. It wants its IT systems back…

Your legacy systems probably aren’t as old as the IRS’ existing systems (some are over 60 years old!). Still, modernizing your legacy technology has been at the back of your mind A LOT nowadays.

Because it is a cybersecurity hazard.

Because antiquated platforms are racking up maintenance costs while generating less and less efficiency 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 do you get the buy-in you need from important stakeholders—whether that is your business associate or the whole boardroom?

Continue reading for your legacy system checklist, this will help you determine when it’s time to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are obsolete systems seeing as they are derived from antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically 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 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.

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

It’s no wonder, then, that optimizing or rebuilding legacy systems with new technology, be it SaaS technology solutions, cloud computing, or on-site implementation is among the most challenging issues CIOs in small and large companies confront in their careers.

What Are the Benefits 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 legacy system modernization expel?

To put it briefly, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

Whether you opt for legacy system enhancements or an absolute digital transformation, modernizing your legacy systems can help you future-proof your organization:

1. Streamline Your Business Operations

A legacy system modernization, like the deployment of SaaS tools, new business intelligence tools, or cloud computing, can refine your workflow and other business operations.

It is not unusual for companies to waste more than half of their IT budget on supporting legacy systems, for example maintaining data hubs instead of carrying out a data migration to the cloud for support ticket management.

CIOs that have implemented technological improvements or even a full-scale digital transformation have cut operational expenses in their companies by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

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

As a matter of fact, organizations in both 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 Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can lead to unplanned downtime for your business workflows.

For airlines, IT systems instabilities can result in thousands of flights to be delayed or cancelled. It was a major issue for airlines. Outdated systems are bad for business.

Your employees undoubtedly dislike the downtime and awful user experience of the obsolete technology too. And when the tech in their hands has seen more advancements in the last decade than your IT systems—it’s time to upgrade. For your credibility.

4. Lower Your Security Risk and Stay Compliant

When your current systems are so old their provider no longer maintains them, they can pose a serious security risk to your business.

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

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

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

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

Your obsolete technology can hardly handle various data formats—much less the enormous amounts of data your IoT devices produce.

Innovative CIOs know legacy software upgrading is essential to improve the compatibility of their IT systems with innovative technology platforms.

That is indeed what the LinkedIn’s CIOs did while the organization was developing into the world’s premier professional network, converting its software design 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 Consider Replacing 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 do you spend on legacy software maintenance or forced downtime due to a full or partial malfunction of your outdated system?

If the cost of maintaining older systems are eating up major resources, it might be time for a more cost-effective solution.

2. Do your legacy systems offer compatibility with modern tech and recent IT innovations?

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

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

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

Because when you are unable to make the most of big data, you won’t have the business insight you need to stay competitive. Adieu, legacy systems.

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

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

6. Is your legacy technology SLOW?

It might be time to jump in with both feet and make a change. 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—with all the speed, efficiency, and versatility your CIOs have been promising with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Software

Rewrite the legacy system, so you can incorporate modern technology solutions, big data capacity, and business intelligence.

3. Rearchitect 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

Restructure 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 Outdated Systems Data and Functions

Encompass your data and functions into the application, so you can access them as services via an API.

8. Replatform Your Legacy Systems Application

Move your legacy systems program to a new run-time tool without dramatically modifying the code or sacrificing functionality.

How Wave Can Be of Assistance with Your Legacy System Upgrade in Buffalo?

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

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

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

We'll also offer you the ongoing IT support 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.