1993 just called. It wants its IT systems back…

Perhaps your legacy systems are not as old as the IRS’ existing systems (some date back 60 years!). However, upgrading your legacy technology has been at the back of your mind A LOT recently.

Because it is a security hazard.

Because obsolete platforms are racking up maintenance costs while delivering less and 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 support of key stakeholders—whether that is your business partner or the whole boardroom?

Continue reading for your legacy system checklist, 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 Legacy systems are obsolete systems since they are based on outdated technology; however, legacy systems, despite their age, limited functionality, and security risk, are generally critical to everyday business processes, points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 public-sector infrastructure that we take for granted: telecommunications services, wastewater treatment plants, power grids, and air traffic control towers. Legacy systems are ESSENTIAL.

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

It’s no wonder, however, that modernizing or substituting legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or on-premise deployment is one of the most difficult tasks CIOs in small and large companies confront in their careers.

What Are the Benefits 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 legacy system modernization remove?

To put it briefly, A LOT.

5 Key Advantages of Upgrading Your Legacy Systems

In the event that you choose a legacy system enhancements or an absolute digital transformation, your legacy system modernization can assist you in future-proofing your company:

1. Streamline Your Business Processes

A legacy system upgrade, such as the adoption of SaaS solutions, modern business intelligence software, or cloud computing, can improve efficiencies in your workflow and other business processes.

It is not uncommon for companies to expend over half of their IT budget on supporting legacy systems, for example maintaining data hubs instead of carrying out a data migration to the cloud for support ticket management.

CIOs that have implemented technological advancements or perhaps a full-scale digital transformation have reduced production expenditures in their organizations by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs well know the costs of maintaining legacy systems, infrastructure, and applications can account for a substantial percentage of the organizational budget.

In fact, companies in both 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 lead to unplanned downtime for your organizational processes.

For airlines, IT systems outages can cause thousands of flights to be delayed or cancelled. It was a major issue for airlines. Obsolete technology is bad for business.

Your employees certainly dislike the downtime and poor user experience of the outdated technology too. And once the technology in their hands has developed quicker 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 current systems are so old their original vendor no longer supports them, they could pose a severe security risk to your business.

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

Substantial breakdowns happen with legacy systems frequently. Remember Equifax?

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

A single integration to your legacy system here, a hotfix for your legacy system there. Before you know it, your company is stumbling on a Frankenstein-style legacy system.

Your outdated technology can hardly handle multiple data formats—let alone the massive amounts of data produced by your IoT devices.

Prospective CIOs understand that legacy software upgrading is mandatory to refine the compatibility of their IT systems with new technological platforms.

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

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

When Should I Upgrade My Legacy System? 6 Questions to Ponder

When contemplating whether or not to modernize legacy technology, CIOs must assess three primary factors: technology, architecture, and functionality.

Here are a few questions to ask before any legacy system upgrade:

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 out-of-date system?

If your cost of maintaining obsolete technology is draining important resources, it might be time for a new, cost-effective platform.

2. Do your legacy systems offer compatibility with newer tech and recent IT advancements?

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 is time to upgrade your legacy system.

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

Or are you having trouble locating mainframe programmers who can fix or extend your COBOL code? If so, your legacy system introduces a serious threat to your firm and should be replaced.

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

Because if you can’t take advantage of enormous data, you won’t have the business insight you need to stay competitive. Goodbye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches correspond 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 modern system.

6. Is your legacy technology SLOW?

It might be time to take the plunge and make a change. The future is FAST. And it’s here.

How Can I Upgrade My Legacy System?

What are your modernization solutions if you've determined that your legacy systems no longer fulfill your organizational needs?

1. Replace Your Legacy Systems

Out with the old, and in with the new—along with all the speed, flexibility, and versatility your CIOs have been promising with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign Your Legacy Systems

Do like LinkedIn and a host of other leading organizations: redesign your legacy software architecture to enable greater agility and scalability.

4. Reconfigure Your Legacy Systems

Restructure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Outdated Systems Functions and Data

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

8. Replatform Your Legacy Systems Application

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

How Wave Can Help with Your Legacy System Modernization in Boise?

Do you believe it’s time to modernize your legacy system? Start with Wave’s thorough system audit, so you can learn about its performance and estimated lifespan.

In this fashion, you’ll know whether you can cope with a few legacy system enhancements or if you need a comprehensive digital transformation now.

Whatever the situation may be for your legacy systems, Wave can handle the necessary modifications or replacements: from adding functionality that improves the user experience or streamlining processes with automation and Business Intelligence platforms.

We will also give you the ongoing IT assistance you need to get the most out of your modernization investment.

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