1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as antiquated as the IRS’ current systems (some are over 60 years old!). Still, modernizing your legacy technology has been at the back of your mind A LOT lately.

Because it poses a security threat.

Because antiquated platforms are racking up maintenance costs while generating even less functionality 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 key stakeholders—whether that is your business associate or the whole boardroom?

Keep reading for your legacy system assessment, so you know when it is time to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems since they are built from older technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally critical to daily business processes, 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 public-sector infrastructure that we take for granted: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are VITAL.

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

It’s no wonder, however, that modernizing or substituting legacy systems with new technology, whether it be cloud computing, SaaS technology solutions, or local installation is one of the most difficult tasks CIOs in small and large businesses encounter 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 “hurdles” could the modernization of your legacy systems remove?

In a nutshell, A LOT.

5 Essential Advantages of Modernizing Your Legacy Systems

In the event that you choose a legacy system enhancements or an absolute digital transformation, your legacy system modernization can help you future-proof your organization:

1. Streamline Your Business Processes

A legacy system modernization, like the adoption of SaaS tools, modern business intelligence software, or cloud computing, can improve efficiencies in your workflow and other business operations.

It’s not unusual for companies to spend over half of their IT budget on supporting legacy systems, for instance maintaining data centers rather than executing a data migration to the cloud for support ticket management.

CIOs that have applied technological advancements or perhaps a full-blown digital transformation have lowered 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 demand a significant percentage of the business’s budget.

In fact, companies in the private and public 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

Legacy technology glitches and failures can result in unexpected downtime for your business processes.

If you’re an air carrier, IT systems outages can result in delays and even the cancellation of thousands of flights. It was a real issue for carriers. Obsolete systems are bad for business.

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

4. Lower Your Security Risk While Maintaining Compliance

If your existing systems are so old their original vendor no longer supports them, they could pose a severe security risk to your business.

Often neglected and outdated systems, your legacy software, does not receive the security patches and updates it needs to avoid cybersecurity breaches.

Big mishaps occur with legacy systems frequently. Remember Equifax?

5. Make Your Business Processes More Agile for Greater Scalability

A one-off integration to your legacy system here, a hotfix for your legacy system there. In no time, your firm is stumbling on a Frankenstein legacy system.

Your obsolete systems can hardly handle numerous data formats—much less the big data produced by your IoT devices.

Innovative CIOs know legacy software upgrading is necessary to refine the compatibility of their IT systems with modern technology solutions.

That is indeed what the CIOs at LinkedIn did as the firm was growing into the world’s premier professional network, moving its system design from a REST API or an event-driven architecture.

CIOs for Netflix, Unilever, SAP, the Federal Aviation Administration, and Amazon have all taken the same approach.

When Should I Upgrade My Legacy System? 6 Questions to Ponder

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

Here are six questions to keep in mind before any legacy system modernization:

1. How much of your IT budget is spent on maintenance costs for legacy software or forced downtime due to a full or partial failure of your outdated system?

If your cost of operating older systems are eating up important resources, it might be time for a cost-effective, new system.

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

Or is it inconvenient to integrate with a new SaaS solution or API? Because of too much old technology or haphazard 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 is a potential threat to your firm and should be upgraded.

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

Because when you can’t take advantage of big data, you will not have the kind of business intelligence you need to be competitive. Adieu, legacy systems.

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

You won’t bring in any new business with such a bad customer experience. It’s time for a modern system.

6. Is your legacy technology SLOW?

It may be time to take the plunge and make a change. The future is FAST. And it has arrived.

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—and all the speed, efficiency, and scalability your CIOs have been promising with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign Your Legacy Systems

Do as LinkedIn along with many other world-class firms have done: rearchitect your legacy software architecture to improve agility and scalability.

4. Refine Your Legacy Systems

Restructure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Legacy Systems Data and Functions

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

8. Replatform Your Legacy Systems Application

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

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

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

In this fashion, you’ll know whether your business can get by with a few legacy system modifications or if you require a complete digital transformation now.

Whatever the situation may be for your legacy systems, Wave can perform the needed modifications or replacements: from adding attributes that improve the customer experience or streamlining processes with automation and Business Intelligence platforms.

We'll also give you the ongoing IT support you need to maximize your modernization investment.

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