1993 just called. It wants its IT systems back…

Your legacy systems probably aren’t as old as the IRS’ existing systems (some date back 60 years!). But, revamping your legacy technology has been on your mind A LOT recently.

Because it poses a security threat.

Because antiquated platforms are increasing maintenance expenses while generating less and less efficiency every day.

Because you are ready to level up your organization’s digital transformation.

We get it. You’re ready for a legacy system modernization.

But how can you gain the necessary buy-in from primary stakeholders—whether that’s your business associate or the entire boardroom?

Keep reading for your legacy system checklist, this will help you determine when it is the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are outdated systems seeing as they are built from outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally essential to everyday business operations,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: wastewater treatment plants, power grids, telecommunications services, 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 corporations and governments worldwide since 2010.

It’s no wonder, however, that optimizing or rebuilding legacy systems with newer technology, be it cloud computing, SaaS technology solutions, or local deployment is one of the most difficult tasks CIOs in small and large organizations encounter in their careers.

What Are the Advantages 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 “obstacles” could the modernization of your legacy systems remove?

Short answer, A LOT.

5 Essential Benefits of Legacy System Modernization

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

1. Optimize Your Business Processes

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

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

CIOs who’ve adopted technological upgrades or perhaps a full-blown digital transformation have reduced production expenses in their businesses by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know legacy system, application, and infrastructure maintenance can eat up a large percentage of the organization’s budget.

Frankly, businesses 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. Improve Your Company’s Customer Experience and Employee Retention

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

If you’re an air carrier, IT systems outages can cause delays and even the cancellation of thousands of flights. It was a serious issue for airlines. Obsolete technology is bad for business.

Your staff unquestionably dislike the downtime and poor user experience of the obsolete technology too. And when the technology in their hands has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your image.

4. Minimize Your Security Risk and Maintain Compliance

When your present systems are so antiquated that their manufacturer no longer services them, they could constitute a serious security risk to your business.

Often neglected and outdated systems, your legacy software, does not receive the security patches and updates it requires to block cybersecurity threats.

Big breakdowns happen with legacy systems all the time. Remember Equifax?

5. Make Your Business Operations More Agile for Greater Scalability

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

Your out-of-date technology can hardly handle various data types—not to mention the big data generated by your IoT devices.

Prospective CIOs know legacy software modernization is mandatory to enhance the compatibility of their IT systems with innovative technological solutions.

That’s exactly what the CIOs at LinkedIn did as the organization was growing into the largest global professional network, transforming its software architecture from a REST API or an event-driven architecture.

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

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

When contemplating whether or not to modernize legacy technology, CIOs must assess three primary factors: technology, architecture, and functionality.

Here are some things to consider before any legacy system modernization:

1. How much 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 keeping outdated technology is eating up major resources, it may be time for a more cost-effective system.

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

Or is it inconvenient to integrate with a new SaaS solution or API? Because of too much old 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 difficulty sourcing mainframe programmers who can fix or extend your COBOL code? If this is the case, your legacy system is a potential risk to your firm and should be replaced.

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

Because if you can’t leverage large data, you will not have the business insight you need to stay competitive. Goodbye, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes correspond with an uptick in customer complaints and support tickets?

With such a negative client experience, you will not attract new customers. It’s time for a modern system.

6. Is your legacy technology SLOW?

It may be time to jump in with both feet and make the change. The future is moving at a breakneck pace. And it’s here.

How Can I Modernize 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, agility, and versatility your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign 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. Refactor Your Legacy Systems

Reconfigure 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

Encapsulate your data and functions in 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 solution without dramatically modifying the code or losing functionality.

How Wave Can Assist with Your Legacy System Modernization in Riverside?

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 predicted lifespan.

In this way, you’ll know whether you can get around with a few legacy system tweaks or if you need a complete digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can handle the needed modifications or replacements: from adding attributes that improve the user experience or streamlining workflows with automation and Business Intelligence solutions.

We will also provide you with the continuous IT support you need to get the most out of your modernization investment.

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