1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as antiquated as the IRS’ current systems (some date back 60 years!). However, revamping your legacy technology has been on your mind A LOT lately.

Because it presents a cybersecurity threat.

Because obsolete systems are costing more to maintain while providing less and less efficiency every day.

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

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

But how can you gain the support of important stakeholders—whether that’s your business partner or the entire boardroom?

Keep reading for your legacy system evaluation, so you know when it is ideal 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 Legacy systems are outdated systems because they are built from antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually essential to day-to-day business operations, points out Gartner.

How essential 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 fuel the infrastructure we take for granted in the public sector: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are CRUCIAL.

Nevertheless, the expenses of modernization (including botched modernization efforts) and maintenance of legacy systems are counterproductive, totaling $35 trillion for corporations and governments globally since 2010.

It’s no wonder, then, that optimizing or replacing legacy systems with newer technology, be it cloud computing, SaaS technology solutions, or on-site installation is among the greatest challenges CIOs in small and large businesses face 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 “hurdles” could the upgrading of legacy systems expel?

Short answer, A LOT.

5 Key Advantages of Upgrading Your Legacy Systems

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

1. Expedite Your Business Processes

A legacy system upgrade, such as the adoption of SaaS solutions, new business intelligence software, or cloud computing, can refine your workflow and other business operations.

It is not out of the ordinary for organizations to spend over half of their IT budget on sustaining legacy systems, for instance maintaining data centers rather than executing a data migration to the cloud for managing support tickets.

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

2. Reduce Your IT System’s Maintenance Costs

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

Frankly, organizations in both private and public sectors spent $26.25 trillion in legacy IT systems operations and maintenance costs over the 11 years spanning 2010 to 2021.

3. Enhance Your Organization’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy technology can result in unexpected downtime for your business processes.

If you’re an air carrier, IT systems faults can result in thousands of flights to be delayed or cancelled. It was a real concern for airlines. Outdated systems are bad for business.

Your personnel unquestionably dislike the downtime and poor user experience of the outdated technology too. And once the tech in their hands 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 outdated that their manufacturer no longer maintains them, they could pose a serious security risk to your company.

Frequently ignored and out of date, your legacy software, doesn’t receive the security patches and updates it needs to block cybersecurity breaches.

Major breakdowns happen with legacy systems frequently. Remember Equifax?

5. Make Your Business Operations More Agile for Better Scalability

A one-off integration to your legacy system here, a hotfix for your legacy system there. Before you know it, your business is clunking along on a Frankenstein-style legacy system.

Your out-of-date technology can hardly handle various data formats—much less the big data your IoT devices produce.

Forward-thinking CIOs realize that legacy software modernization is necessary to improve IT system compatibility with innovative technological tools.

That is exactly what the CIOs at LinkedIn did when the firm was growing into the world’s premier professional network, converting its software design 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 Replace My Legacy System? 6 Questions to Ask

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 ask before upgrading any legacy system:

1. How much of your IT budget do you spend on maintenance costs for legacy software or forced downtime as a result of a full or partial malfunction of your old system?

If your cost of operating outdated systems are depleting major resources, it might be time for a more cost-effective platform.

2. Do your legacy systems work with modern tech and recent IT breakthroughs?

Or is integration with a new SaaS solution or API a nightmare? Because of obsolete technology or ad-hoc customization? If you answered “yes,” it’s time for a legacy system upgrade.

3. Has the vendor that originally designed your legacy system folded?

Or are you having trouble sourcing mainframe programmers to extend or fix your COBOL code? If so, your legacy system is a potential threat to your company and should be upgraded.

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

Because when you can’t take advantage of big data, you will not have the kind of business intelligence you need to be competitive. Bye-bye, legacy systems.

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

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

6. Is your legacy technology SLOW?

It may be time to take the plunge and make the change. The future is moving at a breakneck 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 system—with all the speed, agility, and versatility your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Rearchitect Your Legacy Technology

Do as LinkedIn along with many other world-class firms have done: rearchitect your legacy software architecture to improve agility and scalability.

4. Refine Your Legacy Systems

Reconfigure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Functions and Data

Encompass your data and functions into the application, so that they may be accessed 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 Saint Paul?

Think 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.

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

Whatever the situation may be for your legacy systems, Wave can carry out the required upgrades or replacements: from adding attributes that improve the customer experience or optimizing workflows with automation and Business Intelligence platforms.

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 happy to help! Schedule a consultation today.