1993 just called. It wants its IT systems back…

Your legacy systems probably aren’t as outdated as the IRS’ present systems (some are over 60 years old!).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 presents a security threat.

Because antiquated platforms are racking up maintenance costs while delivering less and less functionality every day.

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

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

But how can you gain the necessary buy-in from primary stakeholders—whether that’s your business partner or the entire boardroom?

Continue reading for your legacy system checklist, so you know when it is the right time for upgrading your legacy systems.

What is a Legacy System?

Legacy systems are IT systems. Oftentimes, legacy systems are outdated systems because they are derived from older technology; however, despite their age, limited functionality, and security risk, legacy systems, are typically vital to day-to-day business workflows, points out Gartner.

How important 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 drive the infrastructure we take for granted in the public sector: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are ESSENTIAL.

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 surprise, then, that upgrading or replacing legacy systems with new technology, whether cloud computing, SaaS technology solutions, or on-premise installation is among the most difficult tasks CIOs in small and large firms encounter in their careers.

What Are the Perks 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 “barriers” could the modernization of your legacy systems remove?

Short answer, A LOT.

5 Essential Benefits of Legacy System Modernization

If you go for legacy system enhancements or an absolute digital transformation, your legacy system modernization can help you future-proof your organization:

1. Streamline Your Business Processes

A legacy system modernization, such as the implementation of SaaS platforms, modern business intelligence platforms, or cloud computing, can refine your workflow and other business operations.

It’s not out of the ordinary for organizations to waste over half of their IT budget on sustaining legacy systems, such as maintaining data centers rather than executing a data migration to the cloud for support ticket management.

CIOs who’ve adopted technological improvements or perhaps a comprehensive digital transformation have cut production expenditures in their companies by up to 500%.

2. Cut Down on Maintenance Costs for Your IT Systems

CIOs are well aware that the maintenance costs of legacy systems, applications, and infrastructure can eat up a significant percentage of the company’s budget.

As a matter of fact, companies 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. Improve Your Business’s Customer Experience and Employee Retention

Glitches and malfunctions in legacy systems can lead to unplanned downtime for your organizational processes.

If you’re an air carrier, IT systems faults can result in thousands of flights to be delayed or cancelled. It was a major issue for airlines. Obsolete systems are bad for business.

Your staff undoubtedly loathe the downtime and poor user experience of the obsolete technology as well. And once the technology in their hands has advanced faster 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 serious security risk to your organization.

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

Major mishaps occur with legacy systems frequently. Remember Equifax?

5. Make Your Business Processes More Agile for Higher Scalability

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

Your old systems are incapable of handling multiple data formats—not to mention the massive amounts of data generated by your IoT devices.

Dynamic CIOs know legacy software upgrading is essential to enhance the compatibility of their IT systems with new technology solutions.

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

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

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

CIOs must evaluate three primary factors when assessing if it is time to modernize legacy technology: technology, architecture, and functionality.

Here are a few things to consider before any legacy system modernization:

1. What percentage of your IT budget do you spend on legacy software maintenance or forced downtime due to a full or partial failure of your old system?

If your cost of keeping older technology is depleting major resources, it may be time for a cost-effective, new system.

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

Or is it a pain to integrate with a new SaaS service or API? Because of too much old technology or haphazard customization? If you answered “yes,” it is time to upgrade your legacy system.

3. Is the vendor who designed your legacy system 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 threat to your business and should be replaced.

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

Because when you are unable to take advantage of large data, you will not have the kind of business intelligence you need to stay competitive. Bye-bye, legacy systems.

5. Does your old system’s forced downtimes, failures, and glitches coincide with an increase in client support tickets and complaints?

With such a poor customer experience, you won’t bring in new customers. It’s time for a modern system.

6. Is your legacy system SLOW?

It may be time to jump in with both feet and make the change. The future is FAST. 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—with all the speed, efficiency, and expandability 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 integrate modern technology solutions, big data capacity, and business intelligence.

3. Redesign 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

Reconfigure your code to eliminate technical debt.

5. Rehost Your Legacy Systems

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

7. Digest Your Legacy Systems Functions and Data

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

8. Migrate Your Legacy Systems Application

Migrate your legacy systems application to a new run-time solution without dramatically modifying the code or losing functionality.

How Wave Can Assist with Your Legacy System Modernization in Fremont?

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

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

Whatever the case proves to be for your legacy systems, Wave can carry out the required upgrades or replacements: from adding attributes that improve the customer experience or simplifying workflows with automation and Business Intelligence tools.

We'll also give you the sustained IT assistance you need to get the most out of your modernization investment.

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