1993 just called. It wants its IT systems back…

Your legacy systems probably are not as outdated as the IRS’ present systems (some are over 60 years old!).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

Because it is a security hazard.

Because outdated platforms are costing more to maintain while providing even less functionality every day.

Because you’re 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 primary stakeholders—whether that is your business partner or the whole 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. Legacy systems are outdated systems seeing as they are based on older technology; however, legacy systems, despite their age, limited functionality, and security risk, are typically vital 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 drive 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 expenses of modernization (including botched modernization efforts) and maintenance of legacy systems are counterproductive, totaling $35 trillion for firms and governments worldwide since 2010.

It’s no surprise, then, that optimizing or substituting legacy systems with newer technology, whether it be SaaS technology solutions, cloud computing, or on-site installation is one of the most challenging issues CIOs in small and large businesses confront in their careers.

What Are the Benefits 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 eliminate?

In a nutshell, A LOT.

5 Significant Advantages of Upgrading Your Legacy Systems

Whether you opt for legacy system enhancements or a comprehensive digital transformation, your legacy system modernization can help you future-proof your business:

1. Expedite Your Business Processes

A legacy system modernization, such as the implementation of SaaS platforms, new business intelligence software, or cloud computing, can improve efficiencies in your workflow and other business processes.

It’s not out of the ordinary for organizations to waste over half of their IT budget on backing legacy systems, such as maintaining data centers rather than executing a data migration to the cloud for support ticket management.

CIOs who’ve applied technological advancements or even a full-blown digital transformation have reduced operational expenses in their organizations by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

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

Frankly, organizations in the 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 Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems might cause unforeseen downtime for your business operations.

For airlines, IT systems faults can cause thousands of flights to be delayed or cancelled. It was a real problem for airlines. Obsolete technology is bad for business.

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

4. Minimize Your Security Risk and Stay Compliant

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

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

Major breakdowns happen with legacy systems regularly. Remember Equifax?

5. Make Your Business Operations More Agile for Greater Scalability

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

Your outdated technology barely handle various data formats—not to mention the big data generated by your IoT devices.

Innovative CIOs understand that legacy software upgrading is necessary to enhance the compatibility of their IT systems with new technology tools.

That is exactly what the CIOs at LinkedIn did when the company was developing into the world’s largest professional network, transforming its system design from a REST API or an event-driven architecture.

CIOs for Netflix, Unilever, SAP, the Federal Aviation Administration, and Amazon have also followed suit.

When Should I Replace My Legacy System? 6 Questions to Ask

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

Here are some questions to ask before any legacy system upgrade:

1. What percentage of your IT budget are you spending on legacy software maintenance or forced downtime as a result of a full or partial failure of your old system?

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

2. Do your legacy systems support newer tech 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’s time to modernize your legacy system.

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

Or are you having difficulty locating mainframe programmers to extend or fix your COBOL code? If this is the case, your legacy system poses a security threat to your company and should be replaced.

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

Because if you are unable to leverage large data, you won’t have the kind of business intelligence you need to be competitive. Goodbye, legacy systems.

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

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 might be time to bite the bullet and make the change. The future is approaching at a frenetic pace. And it’s here.

How Can I Modernize My Legacy System?

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

1. Replace Your Legacy Systems

Out with the old, and in with the new—with all the speed, flexibility, and versatility your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

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

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. Refactor Your Legacy Systems

Restructure your code, so you can kick technical debt to the curb.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Functions and Data

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

8. Migrate Your Legacy Systems Application

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

How Wave Can Help with Your Legacy System Upgrade in Aurora?

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

That way, you’ll know whether your organization can cope with a few legacy system modifications or if you need a comprehensive digital transformation now.

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

We'll also give you the continuous IT assistance you need to maximize your modernization investment.

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