1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as outdated as the IRS’ existing systems (some are over 60 years old!). However, upgrading your legacy system has been at the back of your mind A LOT nowadays.

Because it poses a cybersecurity hazard.

Because antiquated platforms are costing more to maintain while delivering even less efficiency every day.

Because you are ready to take your business's digital transformation to the next level.

We understand. You’re ready for a legacy system modernization.

But how can you gain the necessary buy-in from important stakeholders—whether that’s your business partner or the whole boardroom?

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

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems because they are derived from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally vital to daily business operations, points out Gartner.

How relevant are legacy systems? In the commercial sector, business processes like payroll, inventory tracking and replenishment, and cashless payment transactions would grind to a halt without the legacy system on which they operate.

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

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

It’s no surprise, however, that optimizing or replacing legacy systems with newer technology, be it SaaS technology solutions, cloud computing, or on-site implementation is among the most difficult tasks CIOs in small and large companies face in their careers.

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

In a nutshell, A LOT.

5 Significant Advantages of Modernizing Your Legacy Systems

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

1. Streamline Your Business Operations

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

It is not out of the ordinary for companies to expend more than half of their IT budget on supporting legacy systems, for example maintaining data hubs rather than executing a data migration to the cloud for support ticket management.

CIOs who’ve adopted technological improvements or perhaps a full-scale digital transformation have cut operational costs in their companies by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

CIOs are well aware that the maintenance costs of legacy systems, applications, and infrastructure can demand a significant percentage of the company’s budget.

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

Glitches and malfunctions in legacy technology can result in unplanned downtime for your business operations.

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 problem for carriers. Obsolete technology is bad for business.

Your staff undoubtedly loathe the downtime and unsatisfactory user experience of the older technology too. And when the tech in their pockets has seen more advancements in the last decade than your IT systems—it’s time for an upgrade. For your credibility.

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 severe security risk to your business.

Frequently ignored and out of date, your legacy software, does not receive the security updates and patches it needs to prevent cybersecurity attacks.

Major mishaps occur with legacy systems frequently. Remember Equifax?

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

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

Your old systems can hardly handle various data types—let alone the enormous amounts of data produced by your IoT devices.

Innovative CIOs understand that legacy software modernization is essential to refine the compatibility of their IT systems with innovative technological platforms.

That is indeed what the LinkedIn’s CIOs did when the organization was scaling into the largest global professional network, moving its software 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 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.

Below are some questions to keep in mind before upgrading any legacy system:

1. What percentage of your IT budget are you spending 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 operating outdated systems are eating up considerable resources, it may be time for a cost-effective, new platform.

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

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 a hard time locating mainframe programmers to fix or extend your COBOL code? If this is the case, your legacy system is a serious risk to your organization and should be modernized.

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

Because if you are unable to make the most of enormous data, you will not have the kind of business intelligence you need to stay competitive. Bye-bye, legacy systems.

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

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

6. Is your legacy system SLOW?

It may be time to bite the bullet and adapt. The future is FAST. And it has arrived.

How Can I Revamp 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 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 Software

Rewrite the legacy system, so you can integrate modern 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. Refactor Your Legacy Systems

Retool your code to get rid of 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

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

8. Migrate Your Legacy Systems Application

Transfer your legacy systems application to a new run-time solution without extensively modifying the code or losing functionality.

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

Think it’s time for your legacy system modernization? Start with Wave’s extensive system audit, so you can learn about its functionality and predicted lifespan.

In this way, you’ll know whether your organization can get around with a few legacy system enhancements or if you require an extensive 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 simplifying processes with automation and Business Intelligence solutions.

We will also provide you with the ongoing IT assistance you need to see the greatest return on your modernization investment.

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