1993 just called. It wants its IT systems back…

Your legacy systems probably are not as old as the IRS’ current systems (some date back 60 years!). Still, upgrading your legacy technology has been on your mind A LOT lately.

Because it is a cybersecurity risk.

Because outdated systems are racking up maintenance costs while providing less and less capability every day.

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

We get it. You’re ready for a legacy system modernization.

But how can you gain the support of primary stakeholders—whether that is your business associate or the whole boardroom?

Keep 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. Oftentimes, legacy systems are outdated systems seeing as they are based on antiquated technology; however, legacy systems, despite their age, limited functionality, and security risk, are usually vital to day-to-day business operations, 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: power grids, telecommunications services, wastewater treatment plants, and air traffic control towers. Legacy systems are VITAL.

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

It’s no wonder, then, that modernizing or replacing legacy systems with new technology, be it SaaS technology solutions, cloud computing, or local installation is one of 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 “barriers” could the modernization of your legacy systems remove?

Short answer, A LOT.

5 Essential Advantages of Upgrading Your Legacy Systems

Whether you go for legacy system enhancements or an absolute digital transformation, your legacy system modernization can assist you in future-proofing your company:

1. Optimize Your Business Processes

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

It’s not unusual for businesses to spend more than half of their IT budget on sustaining legacy systems, for example maintaining data centers rather than carrying out a data migration to the cloud for support ticket management.

CIOs that have implemented technological upgrades or even a full-scale digital transformation have reduced production expenses in their businesses by up to 500%.

2. Reduce Your IT System’s Maintenance Costs

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

As a matter of fact, businesses in both public and private sectors spent $26.25 trillion in legacy IT systems operations and maintenance costs over the 11 years spanning 2010 to 2021.

3. Enhance Your Business’s Customer Experience and Employee Retention

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

If you’re an air carrier, IT systems faults can result in delays and even the cancellation of thousands of flights. It was a serious problem for carriers. Outdated systems are bad for business.

Your personnel certainly loathe the downtime and unsatisfactory user experience of the older technology too. And once the tech in their pockets has developed quicker in the last decade than your IT systems—it’s time to upgrade. For your credibility.

4. Reduce Your Security Risk and Maintain Compliance

When your present systems are so old their original vendor no longer supports them, they can pose a major security risk to your company.

Often neglected and outdated systems, your legacy software, doesn’t receive the security updates and patches it needs to avoid cybersecurity attacks.

Major mishaps happen with legacy systems all the time. Remember Equifax?

5. Make Your Business Processes More Agile for Greater Scalability

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

Your outdated technology are incapable of handling multiple data types—not to mention the big data your IoT devices generate.

Prospective CIOs realize that legacy software upgrading is essential to refine IT system compatibility with new technology platforms.

That’s exactly what the LinkedIn’s CIOs did as the organization was growing into the world’s premier 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 all taken the same approach.

When Should I Consider Replacing 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 a few questions to keep in mind before any legacy system upgrade:

1. How much of your IT budget do you spend on legacy software maintenance or forced downtime due to a complete or partial breakdown of your old system?

If the cost of operating outdated systems are eating up considerable resources, it may be time for a new, cost-effective solution.

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

Or is it inconvenient to integrate with a new SaaS solution or API? Because of obsolete technology or haphazard customization? If you answered “yes,” it is time to upgrade your legacy system.

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

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

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

Because if you can’t leverage big data, you will not have the business insight you need to be competitive. Bye-bye, legacy systems.

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

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 might be time to take the plunge and make a change. The future is moving at a breakneck 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—along with all the speed, efficiency, and expandability your CIOs have been promising with such a digital transformation. Hello, workflow automation!

2. Rebuild Your Legacy Systems

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

3. Redesign Your Legacy Technology

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

4. Reconfigure Your Legacy Systems

Restructure your code, so you can kick technical debt to the curb.

5. Rehost Your Legacy Systems

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

7. Encapsulate Your Legacy Systems Data and Functions

Incorporate your data and functions into 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 extensively modifying the code or losing functionality.

How Wave Can Assist with Your Legacy System Upgrade in Baton Rouge?

Do you believe it’s time to modernize your legacy system? Begin with Wave’s extensive system audit, so you can get insights into its functionality and predicted lifespan.

In this fashion, you’ll know whether your company can cope with a few legacy system modifications or if you require a complete digital transformation now.

Whatever the circumstance may be for your legacy systems, Wave can perform the necessary modifications or replacements: from adding attributes that improve the customer experience or streamlining workflows with automation and Business Intelligence solutions.

We will also give you the continuous IT assistance you need to maximize your modernization investment.

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