Article summary:
Time to Modernize? Legacy systems drain money, slow operations, and pose security risks. Watch for crashes, integration issues, high costs, and outdated tech—modernizing boosts efficiency and cuts risks. Tools like SQLWays can help!
Content Writer, Ispirer Systems
A few years ago, the Government Accountability Office (GAO) reported that 10 critical federal legacy systems drain $337 million per year. Legacy systems often become targets for ransomware and cybersecurity threats. Ransomware incidents now cost an average of $1.85 million to resolve.
The cost of a legacy system is not only money. You also pay for hindered efficiency, neglected security, complicated data management, and slow decision-making.
This article is fully dedicated to legacy application modernization. I will discuss the most critical signs that tell you, " It’s time to modernize!” Let's get started!
What is a legacy system?
A legacy system is an application, platform, or system that once was cutting-edge but now doesn't respond to business requirements. It can be considered outdated either because a more modern system has replaced it or because it requires significant work to maintain its compatibility with newer systems.
Legacy software typically refers to outdated technologies. However, not every programming language is considered obsolete and must be replaced.Several industries, including banking and healthcare, rely on legacy systems and do not see any problems with that. And that’s absolutely fine. Modernization is a must only when its obsolescence hinders or slows down business operations.
Around 72% of executives say their legacy platforms hold them back, leading to productivity drops and traffic spikes. If you are one of them, it’s probably time to consider modernization opportunities.
Top reasons why businesses modernize their software
Today more and more companies choose to start their modernization journey for a number of reasons:
7 signs that a legacy system holding back your business
As outdated software becomes a growing liability, the demand for modernizing legacy systems becomes more pressing. If you're thinking, “It's better the devil you know”, sticking to obsolete technologies can stop your business from growing and put it at risk. Let's examine the main signs that tell you it is the right time to modernize:
1. Downtime and disruptions
Performance of your system is the main reason why you should consider modernization. Legacy systems often crash when they cannot cope with growing demand, which often leads to downtime, disruptions, and, as a result, loss of money. If your system routinely crashes, often requires rebooting, or slows down significantly under regular usage, it's a sure sign that your legacy system hinders productivity.
Let's be honest. Holding onto outdated technology is like refusing to change your first car. It doesn’t work like it’s used to, and you may become sensitive to it because you worked around it too long. Maybe you need a new one, or maybe it's time to find the right mechanic to repair all the necessary parts of it.
Getting back to the topic, if we take a CRM system and there are integration issues with getting data from the CRM into other systems, the solution is not manually transferring data. The only solution here is application modernization. Continuing to defer the inevitable will only result in inefficient performance and exasperated teams. It hinders productivity and creates a downstream effect with security vulnerabilities because outdated applications are especially vulnerable to increasingly sophisticated security threats.
2. Integration issues
Is your business growing or looking to expand its capabilities? A legacy system's rigidity can be a significant roadblock when integrating with modern applications or scaling your operations. That's because legacy systems often rely on outdated communication methods and architectures that may not be compatible with modern applications. Many rely on proprietary protocols or obsolete programming languages, making communication with newer systems difficult. Additionally, legacy systems often lack well-documented APIs or support for standard data formats, creating challenges for seamless data exchange.
3. Security and compliance risks
Legacy apps often lack necessary security protocols and do not comply with modern security standards. It usually leads organizations to additional risks of breaches, ransomware, etc. While patching known weaknesses may offer partial protection, some vulnerabilities are too costly or impossible to fix without a complete system overhaul.
In contrast, modern applications, especially cloud-based ones, include built-in security measures like encryption. These features help companies protect their data and stay compliant with regulations.
4. Skill shortage
As technologies become increasingly outdated, finding skilled professionals to maintain them grows more difficult. Modernization addresses this challenge by providing access to a broader talent pool, ensuring businesses can leverage up-to-date expertise. Additionally, it enables organizations to remain competitive in a rapidly evolving market.
Cost is another critical consideration. Older technologies often require specialized — and scarce — expertise, driving up maintenance expenses. Therefore, outdated systems can become a significant financial burden, making modernization a strategic advantage and a cost-effective solution.
5. High maintenance costs
Legacy applications require high maintenance. Legacy software often incurs high maintenance costs due to the scarcity of expertise, unavailability of parts, and the need for constant patches and updates to prevent security and privacy breaches or system failures.
Modernization can reduce high maintenance costs to the minimum. Successfully modernizing your application systems can minimize the overall cost of business operations by nearly 15%.
6. Technical debt
A major red flag that yells you about modernization is when technical debt starts piling up. Rather than viewing it as a mere obstacle, organizations should recognize it as an opportunity to critically assess their existing systems' efficiency and long-term viability.
Unaddressed technical debt leads to escalating maintenance costs, reduced agility, and increased operational risks — ultimately hindering innovation. This shift in perspective transforms technical debt from a liability into a strategic driver for change. Modernization resolves inefficiencies, unlocks new capabilities, enhances scalability, and positions the organization for future growth.
7. Business agility suffering
Rapid growth and evolving business needs can often drive the decision to modernize the software, especially when existing software is no longer aligned with business needs.
Assuming the biggest challenge is technology-based, few problems can’t be easily solved. Often, technical leaders don't devote sufficient time to communication, change management, and stakeholder management. Most modernization projects fail due to a lack of realistic expectations, defined requirements, and ineffective change management.
How Ispirer supports legacy application modernization
Legacy system modernization can be complex and time-consuming, but reward makes it worth the effort.
Organizations need to move from outdated technologies to stay competitive in today's digital landscape. Modernizing core systems is an ongoing process that requires a team of professionals. When experts work on such a task, it makes all the difference.
Ispirer tools will simplify these processes by minimizing risks, reducing costs, and accelerating modernization efforts. Whether you need straightforward modernization or a full-scale transformation, SQLWays and CodeWays will be great helpers on your journey!
