Legacy or Inherited System: What Is It and When Should You Update It?

In the fast-paced world of business technology, the longevity of computer systems is a critical issue. In this article, we will thoroughly explore what legacy systems, also known as inherited systems, are, and when is the right time to consider their update.

What Is a Legacy or Inherited System?

A legacy system, also called inherited, is software that has been in use for a long time and, although it still functions, has become outdated in terms of technology and integration capabilities with more modern systems. These systems are often designed and developed years ago and have not been updated or modernized to adapt to technological advancements and current needs.

They can be challenging to maintain and update due to their age and lack of compatibility with more modern systems. Additionally, they often require specialized knowledge to operate and maintain, which can make them costly and difficult to sustain in the long term. In today’s highly competitive job market, finding specialized talent is becoming increasingly complex.

The Persistence of Legacy Systems in the Digital Age

In a world that constantly embraces technological innovations, it is surprising that legacy systems, despite their inherent challenges, continue to be an integral part of many businesses. The main reason behind this persistence lies in their proven reliability and their ability to meet business needs over extended periods. These systems have been the backbone of many organizations, providing reliable performance for years.

Why Are Companies Still Working with Legacy Systems?

Many legacy systems are still in use today because of their reliability and because they have proven to be effective in the past. However, as technology continues to advance and business requirements evolve, companies are choosing to update or replace their legacy systems with more modern and flexible solutions.

Resistance to Change in Organizations

One of the most notable obstacles to updating legacy systems is resistance to change within organizations. Companies often feel comfortable with what they know and trust their inherited systems. They fear disruptions in operations and the costs associated with transitioning to new technologies. However, this resistance to change can be detrimental in the long run, as it can limit the company’s ability to compete in an ever-evolving market.

How to Identify a Legacy/Inherited System?

Legacy systems are typically found in monolithic and highly coupled environments, with no possibility of integration with other organization systems. While they are functional systems, keeping them operational requires specific software and hardware versions, as well as expertise in a programming language that is difficult to find in new generations. These systems impact an organization’s innovation capacity due to their limited capabilities for integrating new technologies.

The Integration Challenge

The lack of integration with other systems is one of the most revealing signs of a legacy system. These systems often operate in isolation, without the ability to efficiently and securely share data with other parts of the organization. This lack of integration can lead to duplicated efforts and difficulty in obtaining a complete and real-time view of the company.

When Is the Right Time to Update Your Legacy System?

Determining the right time to update your legacy system is essential to maintain your company’s efficiency and competitiveness. Signs that it’s time to update may include slow performance, known vulnerabilities in outdated software, difficulties in adapting to new technologies, or a decrease in customer satisfaction. Evaluating these signs and considering how an update could improve your system’s productivity and responsiveness is crucial to making an informed decision.

The Importance of User Satisfaction

One of the most critical indicators of the need to update a legacy system is user satisfaction. If customers or employees experience difficulties when interacting with your company due to technological limitations, it’s time to consider an update. Internal user satisfaction, customer retention, and the ability to attract new customers largely depend on the quality of their experience.

What Are the Risks of Continuing to Use a Legacy System?

Mantaining a legacy system over time can pose a range of significant risks to your business. These risks can include security vulnerabilities, lack of technical support, difficulties in integrating new technological solutions, and increasing operational costs. Furthermore, system obsolescence can limit your company’s ability to compete in an ever-changing market. Recognizing and understanding these risks is essential to taking proactive measures to ensure business continuity and efficiency.

The Security Risk

Security is a central concern in the continued use of legacy systems. As systems age, they become more vulnerable to cyber threats. Security patches and updates may be difficult or impossible to apply to legacy systems, making them attractive targets for cyberattacks.

The Scalability Challenge

Another significant risk is the limited scalability of legacy systems. As businesses expand and transform, their technological requirements increase. Legacy systems may fall behind and may not be able to adapt to changing demands. This can limit the company’s growth and its ability to seize new opportunities.

Cost-Benefit Evaluation

The decision to update a legacy system should be based on a rigorous cost-benefit evaluation. While modernization can be costly, the long-term benefits can outweigh the initial expenses. Savings in terms of operational efficiency, reduced security risks, and the ability to take advantage of new business opportunities can justify the investment. It’s important to consider both direct costs and potential benefits when making this critical decision.

What Does Legacy System Modernization Involve?

Modernizing legacy systems involves a process of updating and optimizing designed to improve operational efficiency, address technological limitations, meet customer expectations, and facilitate integration with other systems based on more advanced technological platforms.

Modernization Approaches

There are several approaches to modernize legacy systems. One common approach is refactoring, which involves rewriting specific parts of the code to improve efficiency and integration capabilities. Another approach is migrating to a modern platform, which may involve a complete rewrite of the system in a more current language compatible with current technologies.

What Are the Benefits of Updating a Legacy System?

Modernizing legacy systems brings a series of significant benefits to organizations. By improving operational efficiency, it achieves superior performance, faster time to market, and enhanced experiences for both internal and external customers.

Operational Efficiency: Systems are characterized by improved performance, reducing time to market, and providing superior experiences for both internal and external customers.

Cost Reduction: New architectures allow for the implementation of new deployment models, reducing software, hardware, and licensing costs.

IT Agility: The team can respond more quickly to new demands, leverage data provided by new solutions, integrate systems to optimize processes, and embrace emerging innovation opportunities, enabling them to outperform market competitors. It’s an opportunity to incorporate improvements that support the business, which was not possible to include due to technological limitations.

Our Technological Evolution Service

We have 30 years of experience in the technological evolution of applications, incorporating a modern architecture by implementing applications connected to legacy systems that extend their functions and enhance the user experience, or by updating the entire system, integrating new technologies. Our approach is to provide solutions that not only modernize legacy systems but also add value to business operations.

Methodology and Tools

To carry out this type of project, we have our methodology and tools that enable a predictable, controlled, and efficient evolution process. Our team works closely with clients to understand their specific needs and goals, allowing us to design personalized solutions.

Training and Support

Along with system modernization, we offer continuous training and support to our clients’ IT teams. We recognize that the incorporation of new technologies may require an adaptation period, and we are committed to ensuring that teams are adequately prepared to operate and maintain updated systems effectively.

Proven Results

Through the application of GeneXus technologies, we have helped numerous companies improve their operational efficiency and keep up with market demands. Our results speak for themselves, with clients experiencing significant improvements in their ability to innovate and compete.

Conclusion

In conclusion, legacy systems can be valuable assets, but they also present significant challenges in terms of security, efficiency, and adaptability. Determining when to update a legacy system is a strategic decision that should be based on a careful cost-benefit evaluation. Modernizing legacy systems can provide companies with a competitive advantage by improving operational efficiency, reducing costs, and enhancing their ability to adapt to changing market demands. If you are considering modernizing your legacy system, it’s important to have a reliable and experienced technology partner to guide the process and ensure successful outcomes.