1993 just called. It wants its IT systems back…

Perhaps your legacy systems aren’t as outdated as the IRS’ present systems (some are over 60 years old!). However, upgrading your legacy technology has been on your mind A LOT nowadays.

Because it poses a security hazard.

Because obsolete platforms are increasing maintenance expenses while providing less and less efficiency every day.

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

We understand. You’re ready for a legacy system modernization.

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

Continue reading for your legacy system checklist, this will help you determine when it’s ideal to upgrade your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Legacy systems are obsolete systems seeing as they are derived from outdated technology; however, despite their age, limited functionality, and security risk, legacy systems, are generally critical to daily business workflows, points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 power public-sector infrastructure that we take for granted: wastewater treatment plants, power grids, telecommunications services, and air traffic control towers. Legacy systems are CRUCIAL.

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

It’s no wonder, then, that upgrading or rebuilding legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or local implementation is one of the most challenging issues CIOs in small and large businesses face in their careers.

What Are the Benefits 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 “obstacles” could legacy system modernization eliminate?

In a nutshell, A LOT.

5 Significant Benefits of Modernizing Your Legacy Systems

Whether you opt for legacy system enhancements or a comprehensive digital transformation, your legacy system modernization can help you future-proof your organization:

1. Expedite Your Business Processes

A legacy system modernization, such as the adoption of SaaS tools, modern business intelligence tools, or cloud computing, can refine your workflow and other business processes.

It is not out of the ordinary for companies to waste more than half of their IT budget on supporting legacy systems, such as maintaining data centers instead of carrying out a data migration to the cloud for support ticket management.

CIOs that have adopted technological advancements or perhaps a comprehensive digital transformation have lowered operational expenditures in their companies by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that legacy system, application, and infrastructure maintenance can account for a large percentage of the company’s budget.

As a matter of fact, organizations 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. Enhance Your Organization’s Customer Experience and Employee Retention

Legacy technology glitches and failures might cause unplanned downtime for your business workflows.

For airlines, IT systems instabilities can cause thousands of flights to be delayed or cancelled. It was a serious concern for carriers. Outdated systems are bad for business.

Your employees undoubtedly resent the downtime and unsatisfactory user experience of the obsolete technology as well. And once 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

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

Your legacy software, which is frequently ignored and out of date, does not receive the security updates and patches it needs to avoid cybersecurity threats.

Substantial failures occur with legacy systems regularly. Remember Equifax?

5. Make Your Business Processes More Agile for Higher Scalability

A one-time integration to your legacy software here, a hotfix for your legacy system there. In no time, your business is stumbling on a Frankenstein-style legacy system.

Your obsolete technology can hardly handle various data formats—much less the big data produced by your IoT devices.

Forward-thinking CIOs know legacy software upgrading is mandatory to enhance the compatibility of their IT systems with modern technological platforms.

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

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

When Should I Replace My Legacy System? 6 Questions to Ask

Technology, architecture, and functionality are 3 major considerations for CIOs when deciding if it’s time for a legacy technology upgrade.

Below are some things to consider before upgrading any legacy system:

1. What percentage of your IT budget is spent on legacy software maintenance or forced downtime due to a total or partial malfunction of your out-of-date system?

If your cost of maintaining older systems are depleting considerable resources, it may be time for a more cost-effective system.

2. Do your legacy systems work with the latest technology and recent IT advancements?

Or is integration with a new SaaS solution or API a nightmare? 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 a hard time locating mainframe programmers to extend or fix your COBOL code? If so, your legacy system is a potential threat to your company and should be modernized.

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

Because if you can’t leverage enormous data, you won’t 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 a spike in customer complaints and support tickets?

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

6. Is your legacy technology SLOW?

It may be time to bite the bullet and adapt. The future is approaching at a frenetic pace. And it’s here.

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

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Systems

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

4. Refactor Your Legacy Systems

Reconfigure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

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

8. Migrate Your Legacy Systems Application

Transfer your legacy systems application to a new run-time platform without extensively altering the code or losing functionality.

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

Think it’s time for your legacy system modernization? Start with Wave’s comprehensive system audit, so you can learn about its functionality and estimated lifespan.

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

Whatever the case proves to be for your legacy systems, Wave can carry out the required modifications or replacements: from adding functionality that improves the user experience or optimizing processes with automation and Business Intelligence solutions.

We will also offer you the ongoing IT support you need to see the greatest return on your modernization investment.

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