{"id":12696,"date":"2020-03-05T10:55:28","date_gmt":"2020-03-05T16:55:28","guid":{"rendered":"https:\/\/www.mrc-productivity.com\/blog\/?p=12696"},"modified":"2022-11-22T16:10:39","modified_gmt":"2022-11-22T22:10:39","slug":"legacy-system-modernization-101","status":"publish","type":"post","link":"https:\/\/www.mrc-productivity.com\/blog\/2020\/03\/legacy-system-modernization-101\/","title":{"rendered":"Legacy System Modernization 101"},"content":{"rendered":"

\"Education\"Summary: Legacy Modernization is an important, yet complex topic. Because every business is different, modernization needs vary from one company to the next. Which applications should be modernized? Which modernization approach is right for you? What steps should you take to ensure a successful project? In this guide, we answer all of these questions and more! <\/em><\/span>
\n<\/a>
\nLegacy modernization<\/a> is a complex topic. <\/p>\n

After all, every business is unique. Every system is different. Every organization has different needs and goals. <\/p>\n

That means there\u2019s no single approach that works for everyone. It means that different businesses have different needs and challenges. What works for one company might not work for another.<\/p>\n

Because modernization can mean so many different things, it\u2019s surrounded with confusion. How do you know which approach is best for your company? How do you know if you even need modernization?<\/p>\n

In this guide, I\u2019d like to cut through some of the modernization confusion. We\u2019ll take a deep dive into key modernization topics, such as approaches, risks, best practices, and more. Hopefully, this guide will give you a good starting point in your modernization journey. Let\u2019s start things off with a definition of modernization and legacy applications.<\/p>\n

What is legacy system modernization?<\/h3>\n

\"Embedded
\nAs business systems age, they have more trouble supporting modern business needs. Legacy modernization involves updating or replacing those outdated systems to better support your business goals. <\/p>\n

But, modernization is more than just a modern system. When done correctly, it offers a number of benefits.<\/p>\n

\n\u201cThe possible gains are countless,\u201d explains Pavel Ilyusenko, Head of PMO at ScienceSoft<\/span><\/a>. \u201cModernization lowers maintenance costs and efforts. It helps to make the application re-usable by other internal and external systems, opens it for new features, DevOps and CI\/CD enablement, allows for scalability and improves portability and integration potential. It also adds to users\u2019 satisfaction due to software\u2019s improved look & feel and extended reach (web or mobile), and more.\u201d\n<\/p><\/blockquote>\n

The big question: What type of systems should you modernize? How do you know if your software is in need of modernization? We\u2019ll answer these questions in the next section.<\/p>\n

What are legacy systems?<\/h3>\n

What is a legacy system? There\u2019s a long answer and a short answer. <\/p>\n

Let\u2019s start with the short answer. Gartner<\/span><\/a> defines it as, \u201cAn information system that may be based on outdated technologies, but is critical to day-to-day operations.\u201d <\/p>\n

Now, for the long answer: Legacy software is not defined solely by age. It\u2019s defined by its impact on your business. <\/p>\n

For instance, you may have a 15 year-old system that still meets your needs and integrates with modern technologies. You might also have a 5 year-old system that\u2019s hard to maintain and slows down your organization\u2019s ability to grow and adapt. Which one is a legacy system? <\/p>\n

Legacy systems are those that cannot meet your business needs or slows you down in some way. Here are a few signs of legacy software:<\/p>\n

    \n
  1. It\u2019s no longer supported by the vendor:<\/strong> Maybe the vendor has gone out of business, or the software is deemed \u201ctoo old\u201d to support. Either way, you\u2019re stuck with software that you can\u2019t fix or maintain. <\/li>\n
  2. The software cannot take security updates:<\/strong> As security threats emerge, modern software is constantly patched with security updates. But, what happens when security threats evolve to the point where your software can\u2019t keep up?<\/li>\n
  3. It doesn\u2019t integrate with modern software:<\/strong> Can your company take advantage of new hardware and software options? Maybe not\u2026if you\u2019re stuck with outdated applications.<\/li>\n
  4. You regularly use workarounds:<\/strong> Do your applications slow down your business? Talk to your users. Is the software meeting their needs, or do they use workarounds to meet their needs? <\/li>\n
  5. You\u2019re stuck waiting \u201cX\u201d minutes for something to load\/run\/finish:<\/strong> Applications often grow slower over time. The problem is, users come to accept this as \u201cnormal.\u201d For instance, maybe they wait 10 minutes for a report to generate. This may be normal to them, but a giant waste of time in reality.<\/li>\n
  6. Maintenance costs\/efforts become excessive:<\/strong> How much time and energy does your IT team spend supporting outdated applications? How much time could your IT department save in the long-term if they replaced the applications?<\/li>\n<\/ol>\n

    If I could sum all of those points up into one sentence, it would be this: Legacy software is anything that slows down or harms your organization\u2019s ability to operate. Also, as explained in the next section, legacy software typically adds costs that you may not realize.<\/p>\n

    Hidden costs of legacy systems<\/h3>\n

    \"\"
    photo credit: geralt<\/a> via pixabay<\/a> cc<\/a><\/figcaption><\/figure>Why doesn\u2019t every business replace their legacy applications? In my experience, it usually boils down to three reasons:<\/p>\n
      \n
    1. They\u2019re locked down<\/strong>. In this instance, legacy systems run the business. Or, past customizations have locked the business into a specific software, or version. Replacing these systems is expensive and risky.<\/li>\n

      <\/p>\n

    2. Lack of resources:<\/strong> Modernizing legacy code is overwhelming. There\u2019s a lot to do, and they don\u2019t have all of the resources to do it.<\/li>\n

      <\/p>\n

    3. If it ain\u2019t broke, don\u2019t fix it.<\/strong> Here\u2019s a line I\u2019ve heard before: \u201cWe\u2019ve been using this for 20 years, and it\u2019s still working fine.\u201d Why replace something that still works?<\/li>\n<\/ol>\n

      In other words, they don\u2019t see the value. In their minds, the cost\/effort needed to replace these systems outweighs the cost\/effort to keep them.<\/p>\n

      But, is that really true? The problem is, these companies don\u2019t realize that legacy application costs go far beyond licensing costs. When calculating the costs of legacy applications, you must consider all factors, such as:<\/p>\n

      Maintenance costs<\/strong>
      \nApplications and systems become harder to maintain over time. Every alteration adds another layer of complexity. Over the years, these changes take their toll.<\/p>\n

      Soon, simple updates turn into time-consuming tasks. A change to one area might break another. You find your business needing more resources for maintenance.<\/p>\n

      \n\u201cThe dependence on aging technology creates unnecessary expense,\u201d says Lucy Clews – Field Marketing Executive for Application Modernisation at Advanced<\/span><\/a>. \u201cCore legacy business applications, and the infrastructure required to run them, often consume a high share of a company\u2019s IT budget. In fact, there are plenty of statistics that suggest that maintaining and operating legacy applications consumes anywhere between 60% and 80% of corporate IT budgets.<\/p>\n

      We know that the integration of, and migration from, legacy environments to modern technology platforms is a growing challenge for many organisations around the globe. But, if organizations stand still, they will find themselves in what is commonly called \u2018technical debt\u2019. It\u2019s a concept in software development that reflects the implied cost of additional rework caused by choosing an easy solution now, instead of using a better approach that would take longer \u2013 leading to a drain on financial, physical and human resources.\u201d\n<\/p><\/blockquote>\n

      Legacy skills costs<\/strong>
      \nLegacy systems require a legacy skillset. As employees with these legacy skills reach retirement age, your talent pool shrinks. In other words, you\u2019re facing a growing skills gap. <\/p>\n

      The bigger problem: As competition shrinks, costs go up. Those with legacy skills demand more than those with skills in modern systems.<\/p>\n

      \n\u201cStaff with legacy skills are retiring, taking years of experience and vital knowledge with them,\u201d says Clews. \u201cIT leaders are now struggling with resourcing issues, either failing to find employees with the necessary abilities or paying higher costs for those that have them. This expense is only set to increase further as developers with the necessary skills become even harder to find.\u201d\n<\/p><\/blockquote>\n

      Support costs<\/strong>
      \nWhat happens if you\u2019re using third-party software? You don\u2019t need to worry about the dwindling legacy skills pool…right? <\/p>\n

      Wrong. What happens when the vendor discontinues support? If you don\u2019t want to upgrade to the latest system, you can choose to support it yourself or find a third-party company to provide support. The problem: Both options come with significant expense.<\/p>\n

      \n\u201cIf you are operating a third-party software, then you always have to be dependent on your vendor for any support and updates,\u201d says Kenny Trinh, Managing Editor of Netbooknews<\/span><\/a>. \u201cUnfortunately, if your vendor has discontinued support for your legacy system, then you have to change your vendor or modernize your legacy system. So, you can prevent your business from losing sensitive data, valuable time and precious money.\u201d\n<\/p><\/blockquote>\n

      Agility costs<\/strong>
      \nMost legacy systems lack agility because they\u2019re hard to change. Do you need to deliver a new feature or application to the business? Chances are, it\u2019s a time-consuming process.<\/p>\n

      The result: Projects take longer and run over budget. You keep running into roadblocks during the project. Testing new features requires more time because it\u2019s hard to figure out how everything works together with the old system.<\/p>\n

      \n\u201cEven highly qualified software engineers may fail to understand an old legacy system and elicit the requirements properly,\u201d says Ilyusenko. \u201cWith legacy techs and too complicated nature of an application, any alterations may be not possible or feasible at all. Since the technical documentation is rarely complete, predictions may be incorrect, which results in project cost overruns, delays to the plan and eventually, the loss of top management support.\u201d\n<\/p><\/blockquote>\n

      Integration costs<\/strong>
      \nIn the world of APIs, integration between two software platforms is usually simple. The problem is, legacy systems weren\u2019t designed for this type of integration.<\/p>\n

      For instance, suppose you wanted to integrate your application with a web service. This is easy for a modern application. With a legacy application, it\u2019s not so simple. These integrations often require custom (expensive) coding.<\/p>\n

      \n\u201cMany organizations are now creating digital transformation strategies, developing new systems of engagement, and providing mobile, Cloud-based applications for customers, business partners and employees,\u201d explains Clews. \u201cOften these new digital applications and devices are required to integrate with legacy, mainframe-based systems of record \u2013 and this is where the problem lies.\u201d\n<\/p><\/blockquote>\n

      Hidden risks of legacy systems<\/h3>\n

      \"\"
      photo credit: OpenClipartVectors<\/a> via pixabay<\/a> cc<\/a><\/figcaption><\/figure>As explained above, the cost of ignoring modernization can greatly outweigh the modernization costs. The same can be said about risk.<\/p>\n

      In my experience, many organizations avoid modernization because it\u2019s too \u201crisky\u201d. Their legacy applications just work, and they\u2019re critical to the business. Modernizing them would bring too many risks.<\/p>\n

      If modernization feels like a risk, I have a question: Is it actually riskier to ignore modernization? Let\u2019s explore a few risks of ignoring modernization.<\/p>\n

      You risk losing customers (or users)<\/strong>
      \nWhat happens when you give your customers an outdated solution that doesn\u2019t meet their needs? Or, what happens when you do the same to your internal business users? They\u2019ll find a new solution. <\/p>\n

      This happens far too often. A business ignores modernization for too long. Their customers become frustrated. When a new option emerges, they leave in droves.<\/p>\n

      This also applies to IT departments. If an IT department delivers outdated solutions, their users will look for something else. With so many SaaS options available, they\u2019ll likely find something. This is one problem fueling the \u201cShadow IT\u201d trend\u2013a growing issue in the business world.<\/p>\n

      You create security risks<\/strong>
      \nAs security risks evolve, software must be maintained and patched. If left unpatched, you open your business up to security breaches. <\/p>\n

      When dealing with custom legacy systems, this creates a major risk. What happens if the original programmers leave? What happens if it\u2019s written in a language that your current programmers don\u2019t understand? <\/p>\n

      \n\u201cLegacy systems put many businesses at risk,\u201d says Ilan Sredni, Founder and CEO of Palindrome Consulting<\/span><\/a>. \u201cThe two main areas of risk are security and custom programming. We have seen too many situations when custom programming has created a brake system in a company\u2019s growth. The original programmer is no longer available or the language in which the application is no longer supported. Additionally, add that the functionality of an outdated legacy system does not cover all of the security holes that have been identified over the years. Modernizing a legacy system will deliver great benefits in security and functionality.\n<\/p><\/blockquote>\n

      You risk software instability<\/strong>
      \nWhy do many companies still use legacy applications? Stability. The applications \u201cjust work\u201d…even if nobody knows how.<\/p>\n

      The problem: They become increasingly convoluted over time. New features get added, often by different programmers. Workarounds are used when something doesn\u2019t fit right. <\/p>\n

      Over time, this adds up. Imagine what 10-20 years of changes has on your systems. Soon, no one is sure how it all works and all of the original programmers have left. A change in one area might break something else. Sure, the system still runs. But, it\u2019s like a ticking time bomb. One wrong move, and it could go down.<\/p>\n

      \n\u201cA computer program that is used will be modified, and when it is modified its complexity will increase provided one does not actively work against this,\u201d explains Clews. \u201cThis is not good news for legacy applications. Many have been around for decades and been modified numerous times by a variety of programmers. As a result, these applications have become \u2018brittle\u2019 \u2013 they are more difficult to enhance and it is more likely that any changes will cause unknown errors or problems elsewhere in the application \u2013 adding to time delays and costs.\u201d\n<\/p><\/blockquote>\n

      Legacy modernization options<\/h3>\n

      \"Modernization\"You\u2019ll find many different modernization approaches. Which one is right for you? It all depends on the existing systems and your business goals and needs. Let\u2019s take a quick look at 5 of the most popular methods:<\/p>\n

      1. Replatform<\/strong>
      This approach involves applying minimal changes to a legacy system, and then moving that system to another platform. While it doesn\u2019t change the code structure or function, it lets you host your applications on a less expensive platform.<\/p>\n