It is a common phenomenon in Information Technology (IT) that organizations and enterprises have to deal with legacy systems. A legacy system refers to an outdated, out-of-date, or inefficient software system or application no longer supported by its developers. A legacy system may be due for an upgrade because it has become too expensive to maintain, needs replacing as technology changes, or superseded newer software packages.
What Is Legacy Modernization?
Legacy Modernization (LM) is the term used to identify a set of strategic and technical decisions related to an organization's need and desire to migrate or convert data, applications, processes, systems, and technology from one platform to another. The end goal of LM is the movement of legacy information so that it remains readily available for internal or external stakeholders while reducing risk through increased integration across technologies designed to manage business operations with higher levels of agility, reliability, and responsiveness.
What Do You Mean By Legacy System?
A legacy system is a computer application or software that an enterprise has used for a long time. It may have served the organization fully or partially, but at some point in time, it becomes non-functional. If the business decides to continue using the application, then it is termed a legacy system. Legacy systems can be divided into two categories:
In-House Developed Systems: These systems are created in-house by developers and programmers working on the same. An example could be a Microsoft Excel sheet where you might add more functionality over time until it becomes too complex to manage anymore. Generally, these systems come under this category which is self-developed and unsupported by anyone else except original creators.
Off-the-Shelf Software: This refers to the software created by developers who are not a part of the organization and are in their own specific field. The main example could be Microsoft Outlook, which is connected to an Exchange Server, which has become outdated, thus resulting in a non-supported system. These systems become legacy systems due to no longer having support from the original developer and hence being termed as Legacy Systems.
How Do You Modernize Legacy System?
There are many approaches to modernizing a legacy system:
New Technology-Based Approach: This approach is taken when the organization wants to migrate from the older system and start using other technologies that they would be more comfortable with. The main advantage of this approach is that new technology will provide better support than an outdated one.
Outsource Legacy Systems: It is one of the most common approaches to modernizing legacy transformation systems. It makes organizations feel more comfortable about legacy application migration as they do not have to deal with the uncertainty and risk of in-house development. In addition, having an external party to help with the modernization can be beneficial, especially if your company lacks expertise or resources.
Customize and Transform: This approach works only when the organization has some technical expertise on its own. They would customize the application modernization approach, which will result in higher costs as it requires more time and money than other approaches. It is also unlikely that organizations will have the skills or resources needed to undertake these improvements. For example, they might not be capable of integrating new technology into older applications.
Approach a Third-Party Vendor to do it: They can customize and transform the application to be more suitable or comparable to newer technologies, which would become easier as the third-party vendor would have access to the original source code. This allows you to get the system done in less time and money than if you were trying to undertake development on your own.
Legacy System Modernization Approaches
There are primarily three approaches to the benefits of application modernization:
Replacement: This approach is taken when the organization wants to eliminate the older system and replace it with a new one. The main advantage of this approach is that development can be done in-house, and hence they will have more control over the end product.
Reinterpretation: This approach is taken when there is a need for quick and/or low-cost results with little risk involved. The main advantage of this approach is that they can take advantage of newer technology without having any technical knowledge about it since the vendor will deal with most aspects of the migration.
Transformation: This approach is taken when they want to make changes in the legacy system to get better results without replacing it completely. The main advantage is that you can use newer technology for some parts of your systems, which will help with modernization while retaining some of the existing assets.
Why Modernize Legacy Systems? What Are The Benefits Of Modernization?
To Reduce Cost: The cost of transforming a legacy system is often less than replacing it.
To Improve Data Security: This approach can help to improve security as well. This solution also allows you to develop web applications for a mobile platform which makes access convenient and real-time from anywhere in the world.
To Become Agile: Modernization improves compatibility with new technologies. You should select the best combination of vendors, technology, and methodology that will reduce costs while improving accuracy, accessibility, and data security. Many organizations cannot afford costly upgrades or replacements of existing systems. Still, they need more flexibility and functionality than what legacy systems offer them off-the-shelf solutions can provide.
Application Modernization Challenges Faced By The Organization
Change Management: It is hard to get everyone on board with a system modernization project. However, changes need to be made smoothly, and changes must be stabilized before new ones are implemented.
Time And Cost: No one wants to spend excess money or time on a project that has a little guarantee of success. Legacy application modernization requires careful planning across the whole organization. Any failure will set it back tremendously – you have to be sure about your choice of technology supplier and methodology before you begin the project.
Integration Of Modern Digital Tools With Legacy Systems: Most software vendors and service providers have in-house expertise in integrating new technologies with legacy applications. They can help you reduce the cost of system app modernization, improve data security using modern digital tools, become agile by deploying modern platforms, and effectively manage change while improving accuracy and accessibility.
Wrong Approach To Modernization: The results of modernization might be disappointing if your approach is incorrect. Companies that are looking to modernize their legacy applications must choose the right technology and methodology as part of a holistic solution. They should also appoint an experienced business analyst who can manage change, communicate key project goals and ensure business continuity throughout the process – in other words, someone with a 'change management' focus rather than simply a technical one.
Lack Of Proper Collaboration And Vision: The main cause of failure in a system modernization project is miscommunication. Project information must be shared clearly with everyone in the organization, particularly with all stakeholders and relevant departments. In addition, each team member must have a clear vision for the future state of the project and where it will improve key performance indicators (KPI).
LM Popular Trends
Cloud Revolution: Introduction of cloud-based applications is an instrumental change in the LM approaches. It has begun to proliferate across all industries.
DevOps Approach: DevOps app is another revolutionary approach, which combines software developers and IT operations professionals into an effective collaboration. This approach to system modernization has provided organizations with the agility that they have been seeking for decades.
Automation: Business Process Automation is another popular trend that helps in reducing the cost and time of modernization.
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