1993 just called. It wants its IT systems back…

Ok, maybe your legacy systems aren’t as outdated as the IRS’ present systems (some date back 60 years!). However, upgrading your legacy technology has been on your mind A LOT nowadays.

Because it’s a security threat.

Because antiquated systems are costing more to maintain while delivering less and less functionality every day.

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

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

But how do you get the buy-in you need from key stakeholders—whether that is your business associate or the entire boardroom?

Continue reading for your legacy system evaluation, this will help you determine when it’s the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are antiquated systems seeing as they are based on older technology; however, despite their age, limited functionality, and security risk, legacy systems, are usually vital 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 power 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.

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

It’s no wonder, then, that optimizing or replacing legacy systems with newer technology, whether cloud computing, SaaS technology solutions, or on-premise installation is among the most challenging issues CIOs in small and large companies face 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 modernization of your legacy systems eliminate?

In a nutshell, A LOT.

5 Key Benefits of Modernizing Your Legacy Systems

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

1. Expedite Your Business Operations

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

It is not uncommon for companies to waste more than half of their IT budget on sustaining legacy systems, for example maintaining data centers instead of carrying out a data migration to the cloud for managing support tickets.

CIOs that have adopted technological improvements or even a comprehensive digital transformation have lowered production expenses in their organizations by up to 500%.

2. Reduce IT System Maintenance Costs

CIOs are well aware that the costs of maintaining legacy systems, infrastructure, and applications can eat up a substantial percentage of the organization’s budget.

Frankly, businesses 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 Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can lead to unforeseen downtime for your business workflows.

If you’re an air carrier, IT systems instabilities can cause thousands of flights to be delayed or cancelled. It was a serious concern for carriers. Outdated technology is bad for business.

Your employees undoubtedly dislike the downtime and poor user experience of the older technology too. And once the technology in their hands has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your reputation.

4. Lower Your Security Risk and Maintain Compliance

If your existing systems are so outdated that their provider no longer supports them, they could constitute a serious security risk to your company.

Often neglected and outdated systems, your legacy software, does not receive the security patches and updates it requires to block cybersecurity threats.

Major failures happen with legacy systems frequently. Remember Equifax?

5. Make Your Business Operations More Agile for Better Scalability

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

Your old technology are incapable of handling multiple data types—let alone the enormous amounts of data produced by your IoT devices.

Prospective CIOs realize that legacy software modernization is mandatory to refine IT system compatibility with new technology solutions.

That is indeed what the CIOs at LinkedIn did as the organization was developing into the world’s premier professional network, transforming its software architecture from a REST API or an event-driven architecture.

CIOs for Netflix, Unilever, SAP, the Federal Aviation Administration, and Amazon have also followed suit.

When Should I Upgrade 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.

Here are some things to consider before any legacy system upgrade:

1. How much of your IT budget do you spend on legacy software maintenance or forced downtime as a result of a total or partial breakdown of your outdated system?

If the cost of maintaining older technology is depleting considerable resources, it may be time for a more cost-effective platform.

2. Do your legacy systems offer compatibility with modern technology and recent IT breakthroughs?

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

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

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

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

Because when you can’t leverage large data, you will not have the kind of business intelligence you need to stay competitive. Adieu, legacy systems.

5. Does your legacy system’s failures, glitches, and forced downtimes correspond with a spike in client 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 system SLOW?

It might be time to bite the bullet and make the change. The future is approaching at a frenetic pace. 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—and all the speed, agility, and scalability your CIOs have promised with such a digital transformation. Welcome, workflow automation!

2. Rebuild Your Legacy Software

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

3. Rearchitect Your Legacy Technology

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

4. Refine Your Legacy Systems

Reconfigure your code to get rid of technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

Incorporate your functions and data into the software, so that they may be accessed as services through an API.

8. Migrate Your Legacy Systems Application

Migrate your legacy systems application to a new run-time tool without drastically altering the code or compromising functionality.

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

Think it’s time to modernize your legacy system? Begin with Wave’s comprehensive system audit, so you can learn about its performance and predicted lifespan.

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

Whatever the case proves to be for your legacy systems, Wave can handle the needed modifications or replacements: from adding attributes that improve the customer experience or streamlining processes with automation and Business Intelligence platforms.

We will also provide you with the ongoing IT support you need to get the most out of your modernization investment.

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