1993 just called. It wants its IT systems back…

Perhaps your legacy systems are not as outdated as the IRS’ existing systems (some are over 60 years old!).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 lately.

Because it’s a cybersecurity risk.

Because obsolete systems are costing more to maintain while generating less and 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 can you gain the support of key stakeholders—whether that’s your business partner or the entire 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. Oftentimes, legacy systems are antiquated systems since they are derived from antiquated technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically vital to day-to-day business processes, points out Gartner.

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

However, 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 surprise, however, that modernizing or rebuilding legacy systems with innovative technology, be it cloud computing, SaaS technology solutions, or local implementation is one of the greatest challenges CIOs in small and large organizations 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 “barriers” could legacy system modernization remove?

Short answer, A LOT.

5 Key Advantages of Modernizing Your Legacy Systems

Whether you opt for legacy system enhancements or an absolute digital transformation, modernizing your legacy systems can help you future-proof your organization:

1. Expedite Your Business Processes

A legacy system upgrade, such as the implementation of SaaS tools, new business intelligence platforms, or cloud computing, can improve efficiencies in your workflow and other business processes.

It is not unusual for companies to expend more than half of their IT budget on backing legacy systems, such as maintaining data hubs rather than carrying out a data migration to the cloud for support ticket management.

CIOs that have applied technological advancements or even a full-blown digital transformation have cut operational expenditures in their companies by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

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

Frankly, businesses 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. Enhance Your Organization’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can result in unforeseen downtime for your organizational processes.

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

Your employees unquestionably dislike the downtime and awful user experience of the older 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 credibility.

4. Lower Your Security Risk While Staying Compliant

If your current systems are so outdated that their manufacturer no longer services them, they can pose a severe security risk to your organization.

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

Substantial breakdowns happen with legacy systems regularly. Remember Equifax?

5. Make Your Business Operations More Agile for Greater Scalability

A one-off integration to your legacy system here, a hotfix for your legacy system there. In no time, your firm is clunking along on a Frankenstein legacy system.

Your obsolete technology are incapable of handling various data formats—not to mention the big data your IoT devices generate.

Forward-looking CIOs understand that legacy software modernization is essential to refine IT system compatibility with new technological tools.

That is indeed what the LinkedIn’s CIOs did while the firm was developing into the world’s largest professional network, moving its system architecture from a REST API or an event-driven architecture.

CIOs for SAP, Netflix, Unilever, Amazon, and the Federal Aviation Administration 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 ask before any legacy system modernization:

1. How much of your IT budget is spent on maintenance costs for legacy software or forced downtime as a result of a complete or partial malfunction of your old system?

If the cost of maintaining outdated technology is depleting important resources, it might be time for a new, cost-effective system.

2. Do your legacy systems support 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 to modernize your legacy system.

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

Or are you having a hard time sourcing mainframe programmers who can extend or fix your COBOL code? If this is the case, your legacy system is a serious risk to your business and should be modernized.

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

Because if you are unable to take advantage of enormous data, you won’t have the business insight you need to be competitive. Adieu, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches correspond with a spike 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 adapt. The future is FAST. And it’s here.

How Can I Modernize 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 system—with all the speed, efficiency, and expandability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign Your Legacy Systems

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

4. Refactor Your Legacy Systems

Reconfigure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Data and Functions

Encapsulate your data and functions in the software, so that they may be accessed as services via an API.

8. Migrate Your Legacy Systems Application

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

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

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

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

Whatever the situation may be for your legacy systems, Wave can handle the necessary upgrades or replacements: from adding features that improve the customer experience or expediting processes with automation and Business Intelligence tools.

We'll 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.