6 Reasons why you should modernize your legacy systems
Microsoft Power Platform / April, 07 2023

6 undeniable reasons to modernize and transform your legacy systems into next-gen tech assets

With the astonishing pace at which technology is evolving, it is no rocket science to understand that businesses must keep up. Legacy systems are the weak links. Comprising of outdated software and technology, legacy systems can hinder the business’s growth, scalability, and performance manifold. Despite this, most organizations still use legacy systems to manage essential business operations.  

Do you know that over two-thirds of businesses still use legacy systems for core business operations? According to a recent survey, over 60% of businesses rely on these legacy apps to power customer-facing applications. Thus, it is no surprise that more than 70% of CXOs worldwide view legacy modernization as a crucial business objective in the upcoming years. In this blog, we will explore the impact of legacy systems and the top reasons why you should modernize them into next-gen tech assets

What is the impact of a Legacy System? 

A legacy system is a term used to describe an outdated information system involving software, hardware, or technology that is still in use but can no longer be supported or updated by the developer. Any changes or replacements might cause an interruption in the functionality of the system. However, such a system hinders future business growth, prevents seamless integration of new features, and substantially slows day-to-day operations. 

Legacy systems are notoriously challenging to maintain and expand. They also come with several hidden costs, such as maintenance, security, compliance, and lost business opportunities that eat into the budget. Hence, modernizing your legacy systems is essential to avoid holding back your business performance and reduce risk exposure.  

Modernization of Legacy System 

With the main aim of improving business processes and achieving the primary enterprise goals, modernization of legacy systems means updating all or some parts of the existing IT legacy system in the enterprise. Mostly, it is an upgrade to a modern programming language and software libraries/protocols to eliminate the drawbacks and risks of an outdated system. 

When it comes to driving the latest innovations and making the most of them, the modernization of the legacy system is an integral part of it. Moreover, legacy software involves significant resource input for maintenance, and finding a skilled specialist who can handle the outdated system is also challenging. Additionally, it is challenging to connect legacy systems with new features and technologies because there is a significant chance that they can crash at any moment, disrupting all internal operations. With the software being so rigid, it is nearly impossible to improve it. For defeating such a barrier and avoid having huge technical debt, do not delay the modernization of legacy applications. It is essential to stay competitive in business. 

6 Reasons why you should modernize your legacy systems into next-gen tech assets 

Let us consider the top six reasons why you need to modernize legacy systems

Reducing maintenance expenses 

You can significantly reduce operational and maintenance expenses by transforming your legacy system. Automating tedious, error-prone, and time-consuming tasks will eliminate the need for manually doing the tasks. It will also reduce the need for expensive developers to maintain the system. Additionally, your next-gen tech will save you the costs associated with employee training, hardware upgrade, and other tech advancements.  

Reports indicate that enterprises spend a significant portion of their IT budget mainly to maintain outdated systems ranging from 60-85%. Not only this hinders their ability to achieve their primary business objectives targeted at improving ROI (Return on Investment), but it also does not get any better. The expenses associated with legacy system maintenance will only increase over time. Thus, modernizing the legacy system is a wise investment decision. 

Enhanced compatibility 

Companies that continue to use legacy systems often face compatibility issues and struggle to adopt new IT infrastructure. Consequently, substantial time and financial resources go towards maintaining the legacy system.  

The system must get synced with the latest applications and tools. Once you modernize the legacy system, your system will be up-to-date with evolving technologies and allow seamless integration. Thus, it is crucial to re-engineer outdated software to strengthen business operations. Introducing next-gen technologies can boost functionality and alleviate the software’s user-friendliness and compatibility. 

Minimize the security risks 

Generally, it goes without saying, that a company’s security should be of a respectable level and caliber. Sadly, legacy software is a prime target for malicious activities because it is susceptible and antiquated. They are substantially less resistant to cyber-attacks and data breaches when compared to modernized systems and much more vulnerable to data leaks and viruses. Backup and recovery of data are also major concerns. 

The lack of security updates and non-compliance with present security standards brings the enterprise with legacy software at very high risk. All of these could seriously impair the enterprise’s ability to operate. Once you update and modernize the legacy systems, you can mitigate the risks of security threats and secure crucial business data.  

No dependency on hardware 

A significant concern of legacy systems is the dependence of legacy systems on in-house hardware. Technology progresses speedily, and the majority of businesses have made the move of switching from on-premises to cloud platforms. Isn’t this a much more effective solution that can lower the cost of infrastructure? Modernizing your outdated software and progressing to the cloud will ensure improved accessibility, improving overall business performance. 

Optimize business processes and continuity

Can legacy software support business operations as the enterprise grows? No, it does not. Instead, it gradually slows down and crashes often. Then how does it meet the fast-evolving business requirements? Modernizing the legacy system will allow you to take advantage of the changing IT architecture, scale up operations, effectively manage business requirements, and streamline workflows.  

Additionally, with the next-gen tech, you can provide enriched customer service and dramatically enhance the user experience. This will guarantee maximum business continuity and exponential growth. The technology will let you provide automation services that are convenient and error-free. 

Enhance performance and productivity 

IT resources are a valuable asset of any enterprise, and their performance pushes the company ahead. However, antiquated legacy systems hamper the daily processes of employees as they have to perform tasks manually, which is not only time-consuming but also counter-productive. 

A modernized system supporting advanced automation will streamline all workflows, optimizing the employees’ performance and boosting productivity and efficiency. The tech team can focus on tasks that bring tangible value to the business, as the modernized system requires much less input. System enhancements augment overcoming potential bottlenecks and inefficiencies, ultimately reducing costs, downtime, and manual labor. With enhanced productivity, the enterprise can significantly improve its bottom line.  

Take away 

Transforming legacy systems into modernized systems may be a complex process. Nonetheless, the immense advantages of modernization far overshadow the challenges. With the rapid pace of digitalization across industries, upgrading and modernizing the systems is essential for staying competitive. Instead, the sooner you start, the faster you drive your business to the next level. At Saxon, we have a robust team of techies who can modernize legacy systems into next-gen tech across various industries. You can harness the power of next-gen tech and upscale to boost business growth. 

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