Legacy System Modernization : Part 1
Part 1 : Know the Hidden Cost
Old is gold, but is it true always? Owning an outdated Legacy System is not as cool as owning a retro car. Its value does not go up in the long run.
As defined by Gartner a Legacy application is “an information system than may be based on outdated technologies, but is critical to day-to-day operations”.
In software industry many organization keep running legacy systems, for core business operations, fine-tuned over the years, these systems are adapted to deliver specific functionality.
Why would one even prioritize for modernizing them?
Together, in this post lets find out more on hidden costs it tag along
$ Support and Maintenance
Legacy systems are very large in terms of code artifacts as well as tightly coupled core functionalities. This monolithic nature we can not just change or replace once and for all. Any change here requires abundant time and efforts, neither of which come cheap.
Think about underlying infrastructure, the maintenance spending remains high, as compared to modern cloud-based solutions.
Some cases the system was built on obsolete technologies, that need specific skills and expertise. While the developers who build, moved on to newer or switch to other tech, it hard to find and retain the right talent, another entry in the ledger on expense “Training”
$ Security Vulnerability
A lack of security in legacy hardware and other systems presents a significant vulnerability that can be a difficult to close. If the software solution had been around for years, the attackers most likely had enough time to get familiar with system and find vulnerabilities.
For custom-built system one need to have appropriate resources to maintain it, adding more patches means additional investment in security. “Leaky Bucket”
$ Lost Business Opportunities
Budget, spent on maintenance, leaving less room for investment on innovations. Instead of adopting new tech and business model, you get stuck with old software, letting new opportunities in your industry go unnoticed. This leaves competitors more openings to outperform and take over your market share.
$ API Integration
In an API world, most of the unicorns rely on third-party to access a few capabilities such as geolocation, user authentication and transactions. Such as Uber, Zomato relies on Maps API for its core functionality : #Navigation for drivers and visualization for customers.
Modern technologies are integration-ready by default. Obsolete or rare technologies lack compatibility. Connecting a legacy software to a third-party tool or service often requires a significant amount of custom code; still towards the end the final integration comes with lot of “Spaghetti Code”
$ Compliance with Regulations
Heavily regulated sectors have a solid attention to the compliance. It’s been a while since the GDPR (General Data Protection Regulation) became effective, but organizations struggle to comply with it.
$ Organizational agility and Efficiency
Timing proves to be crucial, in business opportunities. How fast we can respond to the market challenge? Weeks or rather months? In most cases business bound to legacy system lack organizational agility to adapt to the upcoming challenges. Meanwhile, IT modernization is grounded on agility, along with digital M&A (Mergers and acquisitions) and cooperation with digital startups.
Agile methodologies can speed up the provision of IT services and they are particularly suitable for transformations with a great deal of uncertainty.
Thus it’s more effective to initiate modernization with the focus on Continuous delivery integrating product development with IT operations. “DevOps”
