IT Security

Understanding Legacy Technology: Examples of Legacy Systems Still in Use

IT Security
Timothy Clarkson
October 9, 2024

You’re a business owner trying to make sense of outdated software slowing everything down. The systems you’ve relied on for years are now holding your business back, causing frustration among your staff and even putting your data at risk. Perhaps you’ve been told to replace these systems, but the thought of migrating all your valuable information and disrupting operations sounds overwhelming.

We get it. You’re not alone—many businesses face the challenge of modernising legacy systems while trying to maintain day-to-day operations. This guide will help you understand why your legacy technology may still work in some cases, but why it's time to start thinking about legacy system modernisation before it's too late.

What is a legacy technology system?

A legacy technology system refers to outdated hardware or software systems businesses still rely on to perform critical tasks. These systems, while functional, often lack the flexibility and security of newer technologies. For instance, they may run on outdated programming languages or obsolete hardware, making integrating modern systems difficult. Many businesses use legacy systems because they’ve been customised over time or because migrating to newer solutions seems too costly or disruptive.

Examples of legacy systems

It's surprising how many companies still depend on legacy technology to run their operations. From outdated software to legacy hardware, these older systems are often seen in critical industries like finance, healthcare, and government. For example, many banks still use legacy mainframes to handle millions of transactions daily, and government institutions still rely on outdated systems for unemployment services.

In smaller businesses, you might encounter legacy software systems that were built years ago but are still in use today. These systems and applications were often created to serve a specific function and continue to operate because they "just work"—but at a cost. They are increasingly expensive to maintain, vulnerable to security breaches, and rarely integrate well with new business technology.

An office full of legacy technology systems.

Risks of keeping legacy systems

Legacy systems may feel like a comfortable pair of old shoes—reliable and familiar. However, continuing to use them comes with significant risks that can seriously impact your business.

Security vulnerabilities

The most pressing risk of keeping legacy systems is their vulnerability to security breaches. Older systems aren’t built to handle modern threats, and without regular updates, they become a prime target for cyberattacks. If your legacy system is still in use today, it’s likely missing critical security patches, leaving your business exposed to potential attacks. This can result in a costly data breach or even the complete failure of the system.

Operational inefficiency

While your legacy application may technically work, it likely causes operational delays. As business technology evolves, these outdated systems fail to keep up with newer, faster alternatives. Tasks that should take minutes often take much longer on legacy technologies. This inefficiency drains productivity and makes it difficult for your team to focus on more valuable work. Additionally, outdated technology leads to frequent downtime, which could halt your business operations.

High maintenance costs

The cost of maintaining legacy systems increases over time. Fewer technicians are familiar with outdated software, and the hardware required to keep these systems running becomes more scarce and expensive. This puts your business in a position where you are investing money into an obsolete system that will only continue to degrade. Replacing parts, fixing bugs, and addressing system failures cost more than adopting modern technology.

Incompatibility with modern solutions

Another critical risk is the inability of legacy systems to integrate with newer technologies. As your business grows, you may want to adopt more advanced software or cloud solutions, but your legacy infrastructure likely won’t support these innovations. This prevents your business from benefiting from the efficiency, scalability, and automation that modern tools provide. You may even face challenges when trying to migrate data from your legacy system to newer platforms.

Legacy system modernisation or replacement

The decision to modernise or replace your legacy system isn't easy, but it's essential if you want to protect your business from the risks we’ve outlined. While keeping legacy systems may feel like the safer option, the long-term consequences could cost your business security and efficiency.

You have two primary options when dealing with legacy technology: modernise or replace. Legacy system modernisation involves updating your existing legacy software and hardware so that it can integrate better with new business technology. This might include upgrading your computing software, moving parts of your infrastructure to the cloud, or improving security protocols. Modernising legacy systems can extend their life while making them more compatible with modern tools.

On the other hand, replacing your legacy system entirely with a new system offers a fresh start with none of the constraints of outdated technology infrastructure. While this route can be more expensive upfront, it eliminates the need for constant patching and long-term maintenance costs. In many cases, businesses that choose to replace their legacy systems also benefit from better performance, improved security, and reduced downtime.

Factors to consider

When deciding between modernising legacy systems or replacing them, consider the following:

  • Current system performance: How much downtime or lag does your business experience?
  • Security risks: Is your legacy application vulnerable to modern threats?
  • Integration needs: Can your current legacy software systems integrate with new tools or cloud solutions?
  • Cost of maintenance: Are you spending too much on maintaining outdated hardware and software?

Choosing to either modernise or replace your legacy systems can provide a huge boost in productivity and cost savings over time. The key is to make an informed decision based on your business’s specific needs and long-term goals.

Legacy system modernisation strategies

If you've decided to modernise your legacy technology, there are several strategies you can explore to bring your business up to speed without causing massive disruptions. Each strategy depends on the complexity of your current infrastructure and how far you want to go in updating your legacy software systems.

Rehosting

Rehosting, also known as "lift and shift," involves moving your legacy system to a new, more modern environment, such as the cloud, without changing its core functionality. This is a relatively low-risk strategy that allows you to modernise legacy infrastructure while keeping your business processes intact. This strategy is ideal if your system still performs adequately but needs better scalability or security features.

Refactoring

For more complex systems, refactoring might be necessary. This involves making modifications to the existing legacy code to improve performance, security, or scalability. While the core application remains the same, refactoring allows the system to run more efficiently on modern platforms, making it easier to integrate with newer systems.

Replacing components

Another approach is to replace outdated components of your legacy system one at a time. For example, you can replace an obsolete database with a more modern one while keeping other aspects of your system in place. This gradual modernisation approach spreads the cost over time and allows your team to adapt to changes more smoothly.

Full system replacement

When the existing legacy system is simply too outdated, and updating legacy systems isn’t viable, a full replacement may be the best option. This approach involves building a brand-new system from the ground up, designed with modern security features, cloud compatibility, and scalability. While this is often the most expensive option, it can provide the most long-term value, eliminating the risks associated with keeping legacy systems and ensuring your business runs on the most advanced technology available.

Data migration

If you're moving away from legacy systems, one critical aspect to consider is data migration. Moving data from a legacy system to a modern one can be complex and requires careful planning to avoid data loss or corruption. However, modern systems offer more secure and efficient storage, making the transition worth it.

Changing from legacy technology to newer systems.

Modernise legacy systems with expert IT support

Modernising your legacy technology can feel challenging and exhausting, but you don't have to go it alone. With the right IT partner, you can ensure a smooth transition that enhances your business's efficiency, security, and long-term growth. By working with a managed service provider (MSP), you gain access to experts who can assess your current infrastructure and recommend the best legacy system modernisation strategy for your business.

A good MSP team doesn’t just help you replace legacy systems; they offer strategic insights, ensuring that your new technology investments align with your business goals. Whether you choose to rehost, refactor, or fully replace your legacy software systems, an MSP ensures minimal downtime and a secure, seamless transition.

That's where OxygenIT comes in. We've been helping businesses in Christchurch and Wellington modernise their IT infrastructures for nearly two decades. Our team understands the unique challenges of local businesses, and we specialise in providing tailored solutions to ensure your transition is smooth and efficient.

Embrace modern technology for your business

Sticking with legacy technology might feel comfortable in the short term, but the risks of keeping legacy systems can harm your business in ways that are difficult to recover from. From security vulnerabilities to operational inefficiencies, it's clear that updating legacy systems or opting for a complete overhaul is crucial for staying competitive.

If your current system ticks all the boxes, now is the best time to send us a message. We'd love to learn more about your business and discuss how we can bring your business in line with modern technology trends.

Frequently asked questions

What is legacy software and why is it still used?

Legacy software refers to outdated software systems that were developed years ago but are still essential to a company’s operations. Many businesses continue to use these systems because they’ve been heavily customised and integrated into their business processes. While these systems are still in use today, they often come with security risks and inefficiencies.

Why do companies still use legacy systems?

Many organisations continue using legacy systems because replacing them can be costly and disrupt daily operations. Legacy systems are often custom-built to suit the specific needs of a business, making a full replacement challenging. However, as the technology infrastructure evolves, these old systems become harder to maintain and migrate to new technology.

What are the risks of keeping legacy systems?

Legacy systems present several risks, including security vulnerabilities, high maintenance costs, and incompatibility with modern software or hardware. These systems often lack updates, leaving them open to cyberattacks, while the system requires specialised support, which is increasingly difficult to find. Updating a legacy system or replacing it is crucial to maintaining efficiency and security.

How do you know when to replace legacy systems?

When your legacy system starts affecting your business processes—whether through frequent downtime, slow performance, or increased costs—it’s time to consider replacing a legacy system. If your system won’t integrate with new software or can no longer handle essential tasks, it’s a sign that software modernisation or replacement is necessary.

What are the options for modernising legacy systems?

Updating legacy systems can involve a range of strategies, from software modernisation to fully replacing the computer system. Options include rehosting the legacy application on a cloud platform, refactoring legacy code, or gradually migrating to a new technology platform. Each approach has its benefits depending on your business needs and the state of your legacy software systems.

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