Imagine the situation—
You have to give a presentation to clients using a 2005 version of Windows while your competitor gets a 2020 Surface Book laptop.
Doesn’t seem fair, right?
That’s exactly what happens to businesses that rely on outdated software. Their competitors that use faster applications get more clients and revenues because they are faster and more efficient in their business processes.
If you’ve been thinking about updating your “legacy systems,” or outdated software, you can use this guide to get familiar with the modernization process.
What is a Legacy System?
A legacy system is an outdated software system or application that might no longer receive support and maintenance. Using legacy systems means using old technology that is easier for hackers to access and steal data or compromise in other ways.
Many businesses run a major risk by avoiding software modernization. A recent ZenBusiness survey found that over 70% of companies might be using outdated software.
Source: ZenBusiness
Even one piece of a legacy application can expose or make business data extremely vulnerable to cybercriminals. That’s why software companies recommend businesses update their tech stack to avoid problems.
What is Legacy System Modernization?
Legacy system modernization means replacing or updating old applications to the latest versions. Updated applications are faster, receive support from developers, and make business processes easier to complete.
There’s also the term “legacy application modernization,” which refers to updating a single application. Depending on the complexity and usage of the application, modernization in this case is equally important to business success.
Benefits of legacy system modernizations:
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Be more competitive — a business using the latest applications can create more effective products and meet customers’ needs easier
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Decrease business costs — legacy systems are often extremely expensive to run and manage
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Improve data security — the latest applications and software systems have the most effective cybersecurity tools to protect business data
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Provide better customer experience — outdated systems and apps can slow down your own software products and make them more complex.
If you decide to check or update your IT stack to get these benefits, here are the steps to get started.
Legacy System Modernization: How to Get Started
Updating an old software system or even a couple of applications can seem to be a bit complicated. The reason is the modernization process goes deeper than the actual software update.
A proper modernization also means introducing cybersecurity policies, new skills for the personnel, and bringing the entire organization in sync with the latest IT standards.
1. Check the Current Software Systems
Legacy systems’ modernization begins with the assessment of the systems you’re using. They include accounting, HR, product development, cybersecurity, office applications, and other software your business relies on.
Ask yourself these questions to find out if you need modernization:
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How might a legacy system or app be affecting our competitiveness?
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How is an outdated system or app helping us to meet our business goals?
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Is my business using software that was last updated at least six months ago?
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Are there any performance problems with my IT stack? How exactly is it not meeting our expectations?
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How important is an outdated system or app to my business? Are there any departments or teams that use it every day?
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Have we been getting customer complaints or comments about our products or services that can be a result of using a legacy system?
Refer to your IT department and other employees for help in answering these questions. The answers should help you understand where your business’s IT stack might need some updates.
2. Decide Your Goals
Once you’ve established that your business’s IT stack needs some updates, you need to set goals for the modernization process. This means deciding how you’d like the software systems to look like after the update.
The goals depend on the results of the software check. If you found that most systems are outdated, then a complete replacement might be the best idea.
Here are all options for modernization goals:
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Replace 100% of outdated software — means a complete replacement with a new software system with new requirements and processes. Example: replacing an outdated email management system with an all-in-one Customer Relationship Management (CRM) system.
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Rebuild the entire system — involves remaking the legacy system into a modern, cloud environment. The role of the cloud is significant, as it lowers operational costs, increases cybersecurity, and improves the speed of business apps.
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Change hosting — rehosting is useful for companies that would like to keep access to legacy systems. This approach involves moving them to the cloud to improve their security and performance.
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Retire legacy systems — retirement might be a good goal in the situation your employees have too many complaints and need new processes. In this case, businesses decide to lose legacy systems and move users to some alternative ones.
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Retool without conversion — means making updates to the underlying software and databases to make them more effective without making the transfer to the cloud.
Choosing an appropriate legacy software modernization means involving every manager and employee in the discussion. They can provide feedback, data, reports, and other information that might be helpful to make the decision.
3. Build a Modernization Plan
Once you determine legacy system modernization goals, you need a clear plan to achieve them as quickly and efficiently as possible.
The plan should include this information:
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Timelines for gathering business data from legacy systems, modernization processes, and implementation of new practices
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Budget for completing the modernization based on the cost of the tools required for the project
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Order in which you need to modernize processes and software; applicable in case if the business requires some critical apps to be active as fast as possible
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Creating new company policies regarding IT stack use, cybersecurity, employee training, data backup, access rights, etc.
After the plan is done and approved, the implementation begins. For this process to go smoothly, complete support and control from the top management is a must.
Legacy Software Modernization: Summary
Outdated software has no place in modern business — it makes work more difficult, limits the ability to innovate, undermines customer experience, and ultimately, hurts the competitive advantage.
Legacy system modernization is easier to complete with an expert partner. A software development and system modernization company can assist you with planning, creating, and implementing the plan from start to finish.