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10 Signs Indicating Why Businesses Need Legacy System Modernization

Legacy system modernization lays the solid groundwork for efficient performance of aging systems riddled with glitches, and other issues.
Why Business Needs Modernization Legacy System | Binmile

Legacy system modernization is not a new phenomenon for businesses today.

Its efficacy is warranted more than ever. That’s because obsolete and glitch-infested legacy systems pose an existential danger to companies that envision staying competitive, innovative, and successful in today’s ever-evolving digital world and business. 

From unpredictable security lapses to poor risk assessment, legacy system business applications stand as a main contributory factor in affecting critical business operations of enterprises. The result of it emerges in a way contrasting anticipated growth, and success for the businesses using obsolete systems.

What makes legacy systems bottom out to nothingness?

According to the statistical report by Clutch.co survey, top American IT companies favored cloud computing services over legacy systems. The report claims that at least 64% of participants have upvoted the security-efficacy of cloud infrastructure, citing it as relatively better than its legacy counterparts.

security efficacy of cloud infrastructure | Binmile

Does that mean legacy systems lack a safety net for critical business operations?

Well, obsolete legacy systems always carry the lingering danger of abrupt failure and downtime, causing productivity bottoming out every day. As outlined above, for a business eying for success in today’s dynamically changing business landscapes, aging systems would be counterproductive for its vision.

However, if you still want legacy systems to avoid intricate and exorbitant replacement with relatively more advanced and cutting-edge features, don’t worry. 

We are listing the top 10 warning signs signifying why you need to modernize your aging systems and keep them up and running.

Remember that legacy systems must perform to the compatibility of modern platforms so that organizations and enterprises can streamline their critical business applications. Statistically speaking, the application modernization service worldwide is expected to rise from USD 11.4 billion to USD 24.8 billion by 2025 at a CAGR of 16.8%.

What is Legacy System Modernization?

Legacy system modernization involves processes intended to upgrade an organization’s software by ruling out the possibility of data inconsistency and complexity of the system. 

It is a technical overhauling of the aging systems to achieve target results, such as – 

  • Mitigate system complexity
  • Reduce costs
  • Increase data consistency
  • Improve process flexibility
  • Cross-platform collaboration

Modernizing the legacy system also means improving its overall capabilities or upgrade of features.

Legacy modernization affords benefits, including – 

Legacy System Modernization Strategies | Binmile

  • It improves processing time
  • It enables you to make a quick analysis of frauds and their systematic prevention in the future
  • It allows the implementation of business intelligence in the core systems

Why is Legacy System Modernization Required?

The need to modernize legacy systems arises when business initiatives and processes encounter a slowdown and become downright obstacles upon reaching a tipping point. Modern technologies enable business leaders to drive innovations in their businesses. Business leaders relying on legacy systems remain deprived of meeting modern requirements. It eventually leads your business to go downhill in terms of its market growth.

What Makes Legacy Modernization Essential for Business Leaders?

  • It helps businesses with creative solutions to outpace competitors
  • It creates and maintains your competitive advantages
  • It reduces business risks and makes the system’s performance better
  • It is best fitted to meet performance standards, thus helping businesses to ensure that their customers are satisfied, and employees are happy
  • It enables the transition of an agile platform from an IT stack, helping you scale your business in the future
  • It gives protection to your IT Infrastructure against possible internal security breaches and external threats
  • Ensures that the legacy system doesn’t encounter financial incompetence

10 Warning Signs Indicating Why Your Business Requires Legacy System Upgrading

When the system gets slow, clumsy, and glitch-infested

One of the typical symptoms of an outdated system is that it riddles with glitches, making it slow to boot up and time-taking to perform standard tasks. Slowdown and reduced performance could also indicate the system’s poor-quality hardware and an expired OS.

Slow systems indicate need of system modernization | Binmile

While testing and software quality management can afford a semblance of improvement in the system, having a glitch-infested system doesn’t bode well for critical business operations. Therefore, it requires complete reengineering to enhance the performance and efficiency of your business.

When the vendor stops future supports

When Microsoft stopped the future support for its Windows 7, millions of systems running on the outdated Windows OS went into legacy mode. So, if your computer system runs on third-party software which has terminated support for the product you are using for your business, it’s a clear sign that you need to modernize your system to improve your business processes.

A product without future support becomes vulnerable to security threats, such as hacks, data loss, system failure, etc. thereby making your business a risky venture.

The system is not mobile-friendly

Implementing a mobile-app strategy is one of the most important business requirements in today’s business landscape, according to 89% of companies surveyed by Red Hat.

What does that mean? 

It simply means the significance of retrofitting your system to the compatibility of mobile-friendliness. To say otherwise, if your system is connected only by office computers, not from any other device, you should consider upgrading it to ensure that you won’t be outpaced by your competitors, in terms of revenue generation and performance. 

It explains why cloud-supported SaaS products perform better than any on-premises system.

Removing device dependence and employing mobile strategies would mean better performance for your workers using mobile devices for inventory management. Integrating mobile tools would complement your legacy software with improved features. 

The problem with legacy systems is that they mainly depend on bulky custom code and workarounds to be compatible with new tools.

Cloud computer technology making app modernization seamless | Binmile

Vulnerable security infrastructure

Legacy systems running on defunct technology can’t outpace hackers who are relatively more sophisticated today. For legacy systems to be able to keep pace with modern hackers, they need to be upgraded against hacking techniques (like SQL injection) prevalent in today’s time. 

Better conduct a routine security audit to figure out where your legacy software stands on tackling modern hacking techniques. 

Legacy modernization becomes an absolute necessity if your legacy software is found to have gaping vulnerabilities. 

The system encounters frequent crashes and downtime

Redundant legacy software frequently crashes and encounters downtime. This means your system is not compatible to meet your needs when you expect superior performance undisturbed. Besides, such systems are no longer productive to serve your needs due to the absence of effective community support. 

Modernizing legacy systems, in this context, would simply mean improving the operational efficiency and performance of aging systems. 

Legacy Systems not integrating well with modern counterparts

If you want your business processes to run efficiently, ensure that your legacy software is compatible with modern tools and applications. You can’t downplay compatibility issues lurking within integrating legacy systems, be it a new CRM or live chat add-on for your domain. 

A business hog-tied by redundant systems can’t avoid the possibility of losing precious customers. 

For example, a modern virtual customer support system is far better and more productive than a mainstream call center. Old systems and tools will undoubtedly drag you down, failing you to utilize what sophisticated technology may offer. 

What if your competitors utilize modern technology and enjoy the limelight while you remain tethered to your old systems? It’s high time your business required a complete legacy modernization to avoid losing customers, revenue, and existence.

It hampers your team’s productivity

Today’s workday is judged by the goals it has met, not the hours clocked in. 

As a business leader, you need to see if your systems contribute significantly to improving your team’s productivity, such as – 

  • Maintaining proper collaboration
  • Utilizing self-service options
  • Helping employees use the systems easily, irrespective of their technological know-how.

Modern and cutting-edge systems are intuitively designed to serve better than their old counterparts. Legacy modernization, therefore, improves across-the-board collaboration, and productivity.

Expensive maintenance, hidden costs

Failure to modernize legacy systems will quantify hidden costs, such as – 

  • In-house tech support
  • system management
  • Staff training
  • Special licensing

With old systems lacking a centralized data processing module, you can’t evade the risk of incurring expensive upgrades to the databases. 

If the report by the US Government Accountability Office (US GAO) is to be believed, the annual cost of the top 10 legacy systems of the federal government is nearly $337 million

Besides, legacy systems also pan out expensive costs regarding ongoing maintenance activities, tech debt, frequent downtime, and so on. The implication here is that using legacy systems would require you to pay some hidden costs. 

Considering how defunct legacy systems are riddled with security bugs and vulnerabilities, modernizing them is a better option than suffering data breaches or data loss. 

Besides, your IT department will have to spend more time maintaining old systems involving identifying and fixing the bugs rather than focusing on mission-critical projects.


Problems with aging/legacy systems – 

  • Overpay on system management and tech support
  • You can’t upgrade and maintain your database properly
  • Make your precious data vulnerable to security threats
  • You end up spending more than necessary on system updates and integration
  • You may lose business opportunities, as aging systems lack agility and scalability

Obsolete and vulnerable legacy computer systems lack performance efficiency and security reliability. They perform poorly on quality parameters, thereby warranting their modernization. 

When software becomes legacy to liability

The software system you bought some years ago might have been the ideal solution to your business concerns then, but not now. Today, the system may look like it has become a liability rather than a legacy. 

So, why would you risk the downfall of your business by using software that no longer serves your purposes? 

No doubt, some aging systems have their special charm, and they manage to get the work done. However, with changes in technology and demands, they no longer hold the same appeal. 

For instance, why would you use a copy machine or a typewriter when you can get your needs satisfied with a MacBook?

Software not meeting existing regulatory compliances

Not meeting current regulatory compliances is one of the main legacy system challenges. 

The absence of support and investment also augurs the likelihood of the code base insufficiently following the regulatory framework. 

Under such circumstances, any mistake will land you in legal disputes or legal penalties, thereby damaging your reputation in the market.

How to Adopt the Right Legacy System Modernization Strategies?

Legacy system modernization constitutes numerous benefits for organizations. For example, it improves their business efficiency with better functionality and attractive features. However, bear in mind that the approach to legacy upgrade is NOT a task to be taken for granted. Lack of coordination between technical and leadership teams is reported to have caused failure to finish the legacy modernization process among virtually 72% of enterprises. A company can hire a custom software development company that can not only streamline workflow but also reduce time utilization.

Study your legacy system’s key drivers

Study your legacy system based on a business perspective involving focusing on business value, and agility. Focus on whether it fits your business needs. Then study the system based on an IT perspective involving cost, intricacy, and risk. The analysis of your system based on both these perspectives will afford proper understanding, say whether your legacy applications require upgrading or not.

Choose the approach best suited to your legacy modernization purpose. Do this after assessing your project requirements and studying relevant case studies.

Ensure that the problems are well-defined

If your existing legacy system’s compatibility is found insufficiently at par with modern IT or organizational needs, figure out the precise nature of the problems. Also, consider what factors are in order for the legacy system to work correctly.

Works with the best modernization partner

Working with a trusted legacy system modernization partner pans out well for your objectives. For instance, availing the service of the best technocrats specialized in application reengineering aging systems using diverse upgrading approaches. 

Most legacy application strategies end up migrating from on-premises applications to a cloud-native architecture, given it is deemed prudential to avoid costly maintenance and onsite updating.

Legacy system migration to modern tech system | Binmile


Legacy system modernization is a crucial step a business leader must employ when the aging systems don’t render satisfactory results, such as –

  • Better performance results
  • Reduced maintenance costs
  • No security threats
  • No vulnerability
  • Data consistency

Use legacy system upgrades as one of the solid implementation strategies to materialize your organizational objective of upgrading existing legacy applications that have gone defunct to the point of being incompatible with modern tools. The downside of using legacy systems is that they seldom fulfill your business goals regarding gaining competitive advantages.

Turn your legacy system into future-ready assets with Binmile!

The legacy applications, once modernized, generate significantly better revenues, even though the customized replacement of the same may sound initially expensive. Adopting the right modernization approach and tools could incentivize your organizational growth.

As your trusted legacy system modernization partner, we facilitate analyzing and implementing legacy modernization initiatives aligned with your organizational goals. In addition to our proven portfolio of application modernization services, we put together collaborative teams with profound industry experience and technical skills. 

Let us help you integrate a modern and result-oriented legacy modernization approach into your business to improve its efficiency and values.

Binmile Technologies
Shawna Bailey
Content Contributor

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