1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems are not as antiquated as the IRS’ present systems (some date back 60 years!). But, upgrading 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 even less capability every day.

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

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

But how do you get the buy-in you need from key stakeholders—whether that’s your business partner or the whole boardroom?

Keep reading for your legacy system evaluation, 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 obsolete systems since they are based on older technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically vital to everyday business workflows, 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 fuel the infrastructure we take for granted in the public sector: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are CRUCIAL.

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

It’s no surprise, then, that modernizing or replacing legacy systems with innovative technology, be it cloud computing, SaaS technology solutions, or local installation is among the most challenging issues CIOs in small and large businesses encounter in their careers.

What Are the Perks 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 “hurdles” could the upgrading of legacy systems eliminate?

Short answer, A LOT.

5 Key Benefits of Upgrading Your Legacy Systems

If you opt for legacy system enhancements or a complete digital transformation, upgrading your legacy systems can assist you in future-proofing your company:

1. Streamline Your Business Processes

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

It is not unusual for organizations to expend more than half of their IT budget on sustaining legacy systems, for instance maintaining data centers instead of carrying out a data migration to the cloud for managing support tickets.

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

2. Reduce Your IT System’s Maintenance Costs

CIOs well know legacy system, application, and infrastructure maintenance can account for a large percentage of the business’s budget.

As a matter of fact, businesses in the public and private 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 systems can result in unexpected downtime for your business processes.

For airlines, IT systems outages can result in delays and even the cancellation of thousands of flights. It was a serious issue for airlines. Outdated technology is bad for business.

Your staff undoubtedly dislike the downtime and poor user experience of the outdated technology too. And when the tech in their hands has seen more advancements in the last decade than your IT systems—it’s time for an upgrade. For your reputation.

4. Lower Your Security Risk and Maintain Compliance

When your current systems are so outdated that their manufacturer no longer maintains them, they can pose a severe security risk to your business.

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

Big mishaps occur 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. In no time, your business is stumbling on a Frankenstein-style legacy system.

Your outdated technology barely handle numerous data formats—not to mention the big data produced by your IoT devices.

Innovative CIOs realize that legacy software upgrading is essential to refine IT system compatibility with innovative technology solutions.

That’s exactly what the CIOs at LinkedIn did when the firm was developing into the world’s largest professional network, transforming its software design from a REST API or an event-driven architecture.

CIOs for Netflix, Unilever, SAP, the Federal Aviation Administration, and Amazon have all taken the same approach.

When Should I Replace 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.

Below are a few questions to keep in mind before any legacy system upgrade:

1. How much of your IT budget do you spend on maintenance costs for legacy software or forced downtime because of a full or partial malfunction of your out-of-date system?

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

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

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

3. Is your legacy system's original developer no longer in business?

Or are you having a hard time finding mainframe programmers to fix or extend your COBOL code? If this is the case, your legacy system is a potential risk to your organization and should be upgraded.

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

Because if you are unable to leverage big data, you will not have the kind of business intelligence you need to be competitive. Goodbye, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes coincide with an uptick in client 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 technology SLOW?

It may be time to bite the bullet and adapt. The future is FAST. And it’s here.

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—along with all the speed, efficiency, and expandability your CIOs have been promising with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

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

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

Restructure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Data and Functions

Encompass 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 platform without drastically altering the code or sacrificing functionality.

How Wave Can Help with Your Legacy System Upgrade in Honolulu?

Think it’s time to modernize your legacy system? Start with Wave’s thorough system audit, so you can get insights into its functionality and estimated lifespan.

That way, you’ll know whether your company can cope with a few legacy system enhancements or if you require an extensive digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can carry out the needed modifications or replacements: from adding functionality that improves 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 ready to help! Schedule a consultation today.