1993 just called. It wants its IT systems back…

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

Because it’s a security threat.

Because antiquated systems are costing more to maintain while providing less and less capability every day.

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

We understand. 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 associate or the whole boardroom?

Keep reading for your legacy system assessment, this will help you determine when it is time to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are outdated systems because they are built from older technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally essential to everyday 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 the infrastructure we take for granted in the public sector: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are VITAL.

But, the modernization (including failed modernization efforts) and maintenance costs of keeping legacy systems are troublesome, totaling $35 trillion for companies and governments internationally since 2010.

It’s no wonder, then, that upgrading or replacing legacy systems with innovative technology, be it SaaS technology solutions, cloud computing, or local installation is among the most difficult tasks CIOs in small and large companies confront 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 remove?

To put it briefly, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

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

1. Expedite Your Business Operations

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

It is not out of the ordinary for companies to waste over half of their IT budget on backing legacy systems, for instance maintaining data hubs rather than performing a data migration to the cloud for support ticket management.

CIOs who’ve applied technological advancements or perhaps a full-scale digital transformation have cut production expenditures in their organizations by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know legacy system, application, and infrastructure maintenance can demand a large percentage of the organizational budget.

As a matter of fact, organizations in both 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 Company’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can lead to unforeseen downtime for your business operations.

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

Your personnel undoubtedly loathe the downtime and unsatisfactory user experience of the older technology too. And when the technology 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 Maintaining Compliance

If your present systems are so old their provider no longer maintains them, they could constitute a severe security risk to your company.

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

Substantial failures happen with legacy systems all the time. Remember Equifax?

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

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

Your out-of-date systems are incapable of handling numerous data formats—let alone the massive amounts of data your IoT devices generate.

Innovative CIOs know legacy software upgrading is necessary to enhance IT system compatibility with innovative technology tools.

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

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

When Should I Consider Upgrading 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.

Here are some 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 breakdown of your outdated system?

If your cost of operating outdated technology is draining important resources, it may be time for a new, cost-effective platform.

2. Do your legacy systems work with newer 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 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 trouble locating mainframe programmers to fix or extend your COBOL code? If this is the case, your legacy system is a security threat to your business and should be replaced.

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

Because when you can’t leverage big data, you won’t have the kind of business intelligence you need to be competitive. Goodbye, legacy systems.

5. Do glitches, failures, and forced downtimes with your old system correspond with an uptick in customer support tickets and complaints?

With such a poor customer experience, you won’t bring in 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 a change. The future is FAST. And it has arrived.

How Can I Upgrade 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—with all the speed, flexibility, and scalability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Technology

Redesign your legacy software architecture to provide more agility and scalability, as LinkedIn and a slew of other outstanding firms have done.

4. Reconfigure Your Legacy Systems

Retool your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

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

8. Replatform Your Legacy Systems Application

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

How Wave Can Assist with Your Legacy System Upgrade in Boston?

Do you believe it’s time for your legacy system modernization? Begin with Wave’s comprehensive system audit, so you can get insights into its performance and expected lifespan.

In this fashion, you’ll know whether you can get by with a few legacy system enhancements or if you need an extensive digital transformation now.

Whatever the case proves to be for your legacy systems, Wave can perform the needed upgrades or replacements: from adding functionality that improves the user experience or optimizing workflows with automation and Business Intelligence platforms.

We'll also give you the continuous IT assistance you need to see the greatest return on your modernization investment.

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