Many companies put off updating a legacy system, even when they accept its limitations. At some companies, it can be a hard sell to replace functioning systems, but the longer it is put off, the more expensive it ultimately becomes. So how do you know when it’s finally time to invest the money and time in replacing it?
There are important signs to watch for so that your legacy system does not become a long-term liability.
Increasing Costs
It is expensive to operate and maintain legacy systems. Your non-technical employees spend more time interacting with older systems because the interface is clunky and the system is full of bugs, and your IT staff spends a large portion of their time fixing bugs and maintaining the system. The time spent interacting with the system cuts down on overall productivity, which costs your company money. If it is costing your company more money to maintain a legacy system than it would be to replace it, then it’s time to update.
Poor Security
Legacy systems make your company more vulnerable to malicious attacks. Unpatched or unsupported software, hard-coded passwords, and no budget for upgrades all make legacy systems vulnerable. Depending on the age of a company’s system, it is possible a company may be unaware it is operating with unpatched software or hard-coded passwords, providing an entry point for hackers.
A security breach can impact your company’s bottom line. Depending on the scale and scope of the breach, you could lose customers, partners, licenses, or contracts.
Hard to Find Talent
It is difficult to recruit developers to work on older technologies. Most likely, new developers will not be trained on the older tech your system is using. It will be harder to find developers with the right skills as more time passes. Developers want to grow their skills and not get stuck working on old tech, which can lead to skills atrophy. The older your tech stack, the harder it is to find developers with the skills and the desire to work on it.
Business Needs Change
If you selected an application five years ago, your business needs may have already changed. A company merger might force changes, new compliance measures could force new application features, or maybe your current system is so outdated that people have created workarounds that the system cannot support longterm. Whatever the situation is, if your system cannot be updated to meet your current business needs, then it’s time to replace it.
Lack of Integration Means Bad Data
Businesses that evolve their systems with siloed applications will eventually find themselves dealing with poorly planned architecture that prevents efficient scaling. IT staff spend a large amount of time supporting one-off applications that do not integrate with each other, often duplicating data and holding it in separate systems. This tangled web of siloed business software systems inhibits flexibility, productivity, and slows down company growth.
Integrated IT systems increase visibility across the organization by providing real-time data and a uniform data pool across departments, saving time and money for IT support, and spurring growth through customer loyalty and new customer acquisition.
Not Mobile
Your staff is on the move, and they carry mobile devices. If your system can not be accessed from mobile devices, including smartphones and tablets, then your team is not as productive as they could be. To maximize the productivity of team members working in the field, they should be constantly connected to your system with real-time data and report features. The older your tech stack, the harder it is to find developers with the skills and the desire to work on it.
New Technologies
Eventually, the appeal of features offered by new technologies will become too strong to resist. There are features that will enhance your staff’s productivity in addition to features that will make your product more attractive to current and potential clients. To stay competitive in the marketplace (and to attract top talent), you need to update your applications.
Non-Development Staff
Your long-time staff, who have worked with your system for years, might accept working with an older system, but it will be difficult for you to recruit new talent while you are using older tech. Today, people expect a certain experience when interacting with technology. People are used to web browsers and graphic interfaces. Even non-technical people want to work with the latest applications because they are user-friendly, fast, and integrate with other applications.
Learn More
Check out our white paper, How to Plan a Successful Legacy System Replacement Project, for even more information about the dangers of putting off a modernization project, plus tips for a successful replacement project.