1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as outdated as the IRS’ present systems (some date back 60 years!). Still, upgrading your legacy system has been on your mind A LOT nowadays.

Because it is a security risk.

Because obsolete systems are increasing maintenance expenses while providing less and less capability every day.

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

We understand. You’re 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?

Keep reading for your legacy system checklist, so you know when it’s ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are obsolete systems because they are based on older technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually critical to daily business operations, 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 ESSENTIAL.

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 upgrading or rebuilding legacy systems with newer technology, whether it be cloud computing, SaaS technology solutions, or on-site deployment is one of the most challenging issues CIOs in small and large companies face 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 “obstacles” could legacy system modernization eliminate?

To put it briefly, A LOT.

5 Key Benefits of Modernizing Your Legacy Systems

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

1. Optimize Your Business Processes

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

It’s not uncommon for companies to waste more than half of their IT budget on supporting legacy systems, such as maintaining data centers instead of performing a data migration to the cloud for managing support tickets.

CIOs that have applied technological advancements or even a comprehensive digital transformation have cut production expenses in their companies by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

CIOs are well aware that legacy system, application, and infrastructure maintenance can account for a substantial percentage of the business’s budget.

In fact, companies 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. Enhance Your Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can result in unforeseen downtime for your business processes.

If you’re an air carrier, IT systems instabilities can cause thousands of flights to be delayed or cancelled. It was a major issue for carriers. Outdated technology is bad for business.

Your personnel undoubtedly resent the downtime and awful user experience of the outdated technology too. And when the tech in their hands has advanced faster in the last decade than your IT systems—it’s time for an upgrade. For your image.

4. Minimize Your Security Risk and Stay Compliant

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

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

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

5. Increase the Agility of Your Business Processes for Better Scalability

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

Your out-of-date systems are incapable of handling numerous data formats—let alone the massive amounts of data generated by your IoT devices.

Forward-thinking CIOs know legacy software modernization is mandatory to refine IT system compatibility with new technology platforms.

That is exactly what the LinkedIn’s CIOs did as the company was developing into the largest global professional network, converting its system architecture 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 Consider Upgrading My Legacy System? 6 Questions to Ask

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

Below are six questions to ask before any legacy system modernization:

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

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

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

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

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

Or are you having trouble finding mainframe programmers who can extend or fix your COBOL code? If so, your legacy system is a serious threat to your firm and should be modernized.

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

Because if you are unable to take advantage of enormous data, you will not have the business insight you need to stay competitive. Adieu, legacy systems.

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

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 jump in with both feet and adapt. The future is FAST. And it has arrived.

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—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 Software

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

3. Rearchitect Your Legacy Technology

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

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

7. Encapsulate Your Legacy Systems Data and Functions

Incorporate your data and functions in the solution, so you can access them as services via an API.

8. Replatform Your Legacy Systems Application

Migrate your legacy systems program to a new run-time tool without extensively altering the code or losing functionality.

How Wave Can Help with Your Legacy System Upgrade in Corpus Christi?

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

In this fashion, you’ll know whether your company can get around with a few legacy system modifications or if you require an extensive digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can perform the needed modifications or replacements: from adding functionality that improves the user experience or streamlining workflows with automation and Business Intelligence tools.

We will also offer you the continuous IT assistance you need to maximize your modernization investment.

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