1993 just called. It wants its IT systems back…

Your legacy systems probably are not as old as the IRS’ current systems (some date back 60 years!). Still, upgrading your legacy system has been at the back of your mind A LOT lately.

Because it’s a cybersecurity risk.

Because antiquated platforms are increasing maintenance expenses while generating less and less functionality 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 support of key stakeholders—whether that’s your business associate or the entire boardroom?

Continue reading for your legacy system evaluation, this will help you determine when it’s time to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems because they are derived from older technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually vital to daily business processes, 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 power public-sector infrastructure that we take for granted: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are CRUCIAL.

But, the costs of modernization (including unsuccessful modernization efforts) and maintenance of legacy systems are cumbersome, totaling $35 trillion for corporations and governments globally since 2010.

It’s no surprise, then, that modernizing or substituting legacy systems with newer technology, be it cloud computing, SaaS technology solutions, or on-premise deployment is among the most challenging issues CIOs in small and large organizations 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 remove?

To put it briefly, A LOT.

5 Key Advantages of Upgrading Your Legacy Systems

If you go for legacy system enhancements or a comprehensive digital transformation, upgrading your legacy systems can assist you in future-proofing your firm:

1. Expedite Your Business Processes

A legacy system upgrade, like the adoption of SaaS tools, new business intelligence platforms, or cloud computing, can enhance your workflow and other business processes.

It’s not out of the ordinary for companies to waste over half of their IT budget on supporting legacy systems, for instance maintaining data hubs instead of carrying out a data migration to the cloud for support ticket management.

CIOs that have implemented technological advancements or perhaps a comprehensive digital transformation have lowered 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 eat up a large percentage of the organization’s budget.

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

Legacy technology glitches and failures might cause unplanned downtime for your organizational operations.

For airlines, IT systems outages can result in thousands of flights to be delayed or cancelled. It was a major issue for carriers. Outdated technology is bad for business.

Your personnel undoubtedly dislike the downtime and awful user experience of the older technology as well. And when the tech in their pockets has seen more advancements in the last decade than your IT systems—it’s time to upgrade. For your image.

4. Lower Your Security Risk While Staying Compliant

If your existing systems are so outdated that their manufacturer no longer supports them, they could pose a major security risk to your organization.

Often neglected and outdated systems, your legacy software, doesn’t receive the security updates and patches it needs to avoid cybersecurity attacks.

Substantial mishaps occur with legacy systems frequently. Remember Equifax?

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

A single integration to your legacy system here, a hotfix for your legacy technology there. Before you know it, your company is stumbling on a Frankenstein legacy system.

Your outdated systems are incapable of handling numerous data types—not to mention the enormous amounts of data your IoT devices generate.

Dynamic CIOs understand that legacy software upgrading is mandatory to enhance IT system compatibility with innovative technology solutions.

That’s exactly what the CIOs at LinkedIn did as the firm was growing into the world’s largest professional network, converting its system architecture from a REST API or an event-driven architecture.

CIOs for Netflix, Unilever, SAP, Amazon, and the Federal Aviation Administration 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 a few things to consider before any legacy system modernization:

1. What percentage of your IT budget is spent on legacy software maintenance or forced downtime because of a full or partial breakdown of your outdated system?

If the cost of operating obsolete systems are eating up considerable resources, it may be time for a cost-effective, new platform.

2. Do your legacy systems offer compatibility with the latest tech and recent IT innovations?

Or is it a pain to integrate with a new SaaS service or API? Because of obsolete technology or haphazard customization? If you answered “yes,” it is time for a legacy system upgrade.

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

Or are you having trouble sourcing mainframe programmers who can extend or fix your COBOL code? If so, your legacy system introduces a potential 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 leverage large data, you won’t have the business insight you need to stay competitive. Adieu, legacy systems.

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

With such a poor customer experience, you won’t bring in new customers. It’s time for a fresh system.

6. Is your legacy system SLOW?

It may be time to take the plunge and adapt. The future is approaching at a frenetic pace. And it has arrived.

How Can I Upgrade 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, efficiency, and expandability your CIOs have promised with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Rearchitect 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. Reconfigure Your Legacy Systems

Restructure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Data and Functions

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

8. Migrate Your Legacy Systems Application

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

How Wave Can Be of Assistance with Your Legacy System Upgrade in Irvine?

Think it’s time for your legacy system modernization? Start with Wave’s extensive system audit, so you can get insights into its performance and estimated lifespan.

That way, you’ll know whether your company can get by with a few legacy system modifications or if you require a comprehensive digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can perform the necessary modifications or replacements: from adding features that improve the customer experience or simplifying workflows with automation and Business Intelligence tools.

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

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