7 Reasons Why Consider Legacy System Modernization
Legacy systems are the key bottlenecks, obstructing companies’ business growth these days. With changing business dynamics and customer behavior, it’s important to modernize your outdated systems adding zero value. It’s not something cooler like owning a retro car. Its value doesn’t go up in the longer run. Instead, it slows down your operations and increases product time-to-market. Whether you’re an e-commerce operator, logistics player, or supply chain entity - fulfilling customers’ orders and expectations at a fast pace is imperative to remain competitive in face of your disruptors. To integrate such capabilities in business, utilization of legacy system modernization services is a must.
Addressing this aspect, the article explains the ten key reasons why you should undergo a legacy system modernization:
Let’s get started:
Why Do You Need Application Modernization?
Modernizing traditional software is more than just an update. It’s about making your organization future-ready for digital disruption. Complex legacy technology is a key barrier to business digital transformation. Data also supports this fact as a recent study from Logicalis highlights that 4 out of 10 CIOs of large multinational companies feel replacing their existing systems is a key barrier in the path of digital transformation.
A research study from Deloitte also states that modernizing existing software systems is the key business priority of companies worldwide. Those who’ve already gone past the modernization journey have started realizing the fruits of their efforts.
The same report highlights “Legacy solutions lack flexibility and carry a significant technology debt due to dated languages, databases, architectures, and a limited supply of aging baby-boomer programmers”
Staying technologically relevant and delivering products to market at a much-faster pace emerged as the two key drivers behind legacy system updation efforts across companies in the Deloitte study.
Why Choose Legacy System Modernization?
By utilizing legacy application modernization services, your business can stay more efficient, profitable, and competitive in today’s increasingly digital business world. It also enables you to fulfill stakeholders and customer expectations, and deliver products or services to the market at an improved pace.
Recent studies highlight the following reasons for the legacy system modernization:
- Sharpen competitive advantage by building unique, future-proof technology solutions
- Establish centralized business processes, reduce risks, and improve performance.
- Increase customer satisfaction and employee engagement rate
- Prepare your IT infrastructure for agile and innovative processes
- Safeguard your business from external cyber threats and internal data breaches.
- Improve your business bottom line by addressing system inefficiencies
- Realize growth opportunities and target new customers
Let’s discuss each one of them in detail:
Overcome Integration and Compatibility Issues
It’s vital that your legacy system syncs well with newer enterprise applications, tools, and other software for running your business operations more efficiently.
For example, implementing a chatbot and CRM into your business are two new integrations. Your existing systems should exchange information with such systems without disrupting any processes. If you lack such business flexibility due to decade-old systems, your customers will sooner shit to other providers, offering better integration and scalability support.
Minimize the Risk of IT Security Threats
Reliable market research highlights outdated systems are vulnerable to malware, data breaches, and other cyber threats. One key reason for poor security in legacy systems is lack of vendor support. In such a case, enterprise software development services providers stop providing new updates, modules, and functionality in legacy systems as per the latest security standards. Modernizing your systems or keeping them keep to date keeps you away from security issues.
Optimized Business Processes
Over time, legacy systems keep slowing down with glitches and crashes often. This impacts organizations’ ability to perform standard tasks at a faster pace. In a time where “fast is profitable,” deployment time should be in days and weeks, rather than months. Legacy systems bind your business to workflows that are less efficient in today’s digital world. Yes, switching from legacy systems to digital and agile processes is longer, resource-intensive, but imagine the benefits and profits your business can get ten years down the line.
Respond to Changing Client Requests Faster
Changes in software functionality or add-on of new features are common with agile development. But, usage of legacy systems and processes restricts your teams from integrating new functionality or serving client needs at a faster pace. The outdated system often works upon decade-old technology infrastructure which makes it harder to make changes in system design and architecture.
Implementation of cloud-based and mobile-first devices in enterprises over legacy systems provide better results in terms of improved performance, access, and usability. With cloud-based solutions, you get round-the-clock support, maintenance, and timely updates. Similarly, the mobile-first development strategy provides flexibility and seamless connectivity to remote workforce operating in sensitive industries like oil & gas, construction and so on.
Avoid Hardware Dependency and Excessive Resource Usage
Using outdated, on-premise systems lead to IT cost overrun in your business. The cost of ownership of such solutions is high due to additional administrative and operating expenses. By switching from legacy systems to cloud platforms like Microsoft Azure and Amazon Web Services, you don’t even require a dedicated server to run your operations.
As per data, you can save up to 65% of your IT infrastructure costs after the first three years of cloud implementation. This is due to a lesser reliance on costly data centers, servers, etc. Running your applications in the cloud also improves your system performance and response times.
Meet Regulatory Compliance Requirements With Ease
Another area What makes legacy systems undesirable is their non-compliance with the latest industry standards. Making the traditional systems work in line with the latest industry standards and practices is a tuff task and requires frequent alternation in their design. Non-compliance with any of the IT industry’s software standards is a major cost center for businesses. For example, if you fail to adhere to the EU's General Data Protection Regulations when building your software, it can cost you millions.
Wrapping it Up..!
Hope you have gained a good amount of knowledge about why legacy system update is important in today’s digital era. The results of legacy modernization are worth taking a risk. But, before you proceed with this journey, you’ll definitely need help from domain experts like A3logics.
Whether you are looking to restructure your entire system or want to add new capabilities to your existing enterprise software, getting expert assistance is critical to ensure long-term success. With expertise across varied industries, A3logics is ever ready to take enterprise-scale legacy modernization projects with a guarantee of personalized services and solutions. Our in-house product engineering services teams follow the six-step process to make the entire legacy system update process efficient for you.