1993 just called. It wants its IT systems back…

Your legacy systems probably are not as old as the IRS’ present systems (some date back 60 years!). However, modernizing your legacy system has been at the back of your mind A LOT recently.

Because it is a cybersecurity threat.

Because outdated platforms are increasing maintenance expenses while providing less and less functionality every day.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 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, so you know when it is ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. 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 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 drive public-sector infrastructure that we take for granted: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are VITAL.

But, the expenses of modernization (including botched modernization efforts) and maintenance of legacy systems are counterproductive, totaling $35 trillion for corporations and governments internationally since 2010.

It’s no surprise, then, that modernizing or substituting legacy systems with new technology, whether SaaS technology solutions, cloud computing, or on-premise implementation is one of the most challenging issues CIOs in small and large companies face in their careers.

What Are the Perks of Updating 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 the upgrading of legacy systems expel?

In a nutshell, A LOT.

5 Significant Advantages of Upgrading Your Legacy Systems

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

1. Expedite Your Business Operations

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

It is not out of the ordinary for organizations to expend over half of their IT budget on sustaining legacy systems, for instance maintaining data hubs instead of executing a data migration to the cloud for managing support tickets.

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

2. Reduce Your IT System’s Maintenance Costs

CIOs are well aware that legacy system, application, and infrastructure maintenance can demand a significant percentage of the organization’s budget.

In fact, organizations in the 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 Organization’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology might cause unplanned downtime for your business workflows.

For airlines, IT systems instabilities can cause thousands of flights to be delayed or cancelled. It was a real problem for airlines. Outdated systems are bad for business.

Your personnel certainly resent the downtime and poor user experience of the outdated technology too. And when the tech in their hands has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your reputation.

4. Minimize Your Security Risk While Staying Compliant

If your present systems are so old their original vendor no longer supports them, they can pose a major security risk to your company.

Your legacy software, which is frequently ignored and out of date, does not receive the security patches and updates it requires to prevent cybersecurity threats.

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

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

A one-time integration to your legacy software here, a hotfix for your legacy software there. Before long, your business is stumbling on a Frankenstein-style legacy system.

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

Dynamic CIOs realize that legacy software upgrading is necessary to enhance IT system compatibility with new technology solutions.

That is indeed what the LinkedIn’s CIOs did when the company was growing into the largest global professional network, moving its system architecture from a REST API or an event-driven architecture.

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

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

Technology, architecture, and functionality are 3 major considerations for CIOs when deciding if it’s time for a legacy technology upgrade.

Below are six questions to keep in mind 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 full or partial failure of your out-of-date system?

If your cost of keeping obsolete systems are eating up major resources, it might be time for a cost-effective, new platform.

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

Or is it inconvenient to integrate with a new SaaS solution or API? Because of obsolete technology or ad-hoc customization? If you answered “yes,” it’s time to upgrade your legacy system.

3. Is the vendor who designed your legacy system no longer in business?

Or are you having trouble locating mainframe programmers to extend or fix your COBOL code? If so, your legacy system introduces a security threat to your company and should be upgraded.

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

Because when you are unable to take advantage of enormous data, you will not have the kind of business intelligence you need to stay competitive. Goodbye, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system coincide with a spike 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 make the change. The future is approaching at a frenetic pace. And it’s here.

How Can I Upgrade 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, flexibility, and expandability 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 implement new technology solutions, big data capacity, and business intelligence.

3. Redesign 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

Retool your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Data and Functions

Incorporate your functions and data in the software, 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 tool without drastically modifying the code or losing functionality.

How Wave Can Help with Your Legacy System Modernization in Pittsburgh?

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

In this way, you’ll know whether your organization can cope with a few legacy system enhancements or if you require an extensive digital transformation now.

Whatever the situation may be for your legacy systems, Wave can perform the required upgrades or replacements: from adding features that improve the user experience or optimizing processes with automation and Business Intelligence solutions.

We will also give 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.