As organisations grow and change, they often accumulate vast amounts of data stored in outdated legacy systems. These systems, while rarely actively used, house critical data necessary for business operations, as well as compliance with tax and data privacy regulations.
The problem is, hanging onto old tech can do more harm than good. In fact, around 44% of mission critical components, like servers, operating systems, and storage networks, are estimated to be close to, or already past their end of life, according to Forbes. That’s a big deal, especially when these systems are still playing a role behind the scenes.
To remain competitive and adapt to technological advancements, businesses must modernise by adopting up-to-date solutions and phasing out legacy systems.
But why is it important to get rid of legacy systems?
There are a few reasons why legacy systems can hinder businesses, including decreased productivity, a growing risk of security breaches, and increased maintenance costs.
We’ll explore the downsides of legacy infrastructure, including how to replace legacy systems, below.
1. Security Risks
Legacy systems pose significant security risks, often running outdated software and operating systems no longer supported by vendors. Without regular updates or patches, these systems become prime targets for cyber attackers, leaving organisations exposed to breaches.
A key example is the NHS, which was struck by the WannaCry ransomware attack in 2017. A modernisation strategy and routine updates could have reduced their reliance on legacy systems and better protected them from such threats.
Over time, legacy systems accumulate complex configurations and code that are hard to keep secure. Many also depend on outdated software, which current IT staff may not fully understand, making it difficult to identify and fix security flaws. Security risks also grow as newer IT professionals lack expertise in legacy systems.
Legacy systems also struggle to integrate with modern security tools. As cybersecurity solutions evolve, outdated infrastructure fails to keep up, leaving organisations vulnerable to emerging threats.
2. Inefficiency and Decreased Productivity
Legacy systems are often slow, unreliable, and incompatible with modern processes and tools. These outdated technologies can disturb workflows, increase employee frustration, and reduce overall productivity.
Research from Insight found that UK office workers waste 1.8 billion working hours annually due to inadequate technology, with 80% feeling they lack the tools to perform their jobs effectively.
The time and effort spent troubleshooting issues or working around system limitations detract from more strategic, value-adding tasks. Over time, these inefficiencies erode an organisation’s ability to stay competitive in a technology-driven marketplace.
In the long term, this lag in technology can leave organisations at a disadvantage in the modern age, affecting their ability to innovate and grow.
3. Privacy Compliance Challenges
Legacy systems present significant challenges for organisations to achieve GDPR compliance. These outdated systems often contain complex data structures, making it difficult to locate personal data.
Many organisations, particularly those relying on mainframe systems, face difficulty tracking the flow of personal data due to these intricate systems. Additionally, accessing source code can be problematic, while the limited pool of IT professionals skilled in maintaining legacy systems further exacerbates the issue.
New technologies tend to be designed with built-in compliance features, making it easier to adhere to regulations. Integrating these technologies into legacy systems can be a complex process.
This difficulty in upgrading outdated systems puts businesses at risk of violating regulations, which leaves them at risk of hefty fines. The Information Commissioner’s Office (ICO) can impose fines of up to £17.5 million or 4% of a company’s yearly revenue, whichever amount is greater, for significant GDPR violations.
4. Limited Integration With Modern Technology
Integrating legacy systems with modern software presents several challenges. System interoperability is a key issue, as older systems often lack the necessary APIs to connect with newer technologies, making digital integration time-consuming and challenging.
Data mapping and transformation can be challenging, as legacy systems often use outdated formats that need meticulous conversion to integrate smoothly. Security and compliance are also a challenge, as legacy systems may not meet the security standards required by modern software, leaving the business vulnerable.
Modern software frequently brings new workflows, but ensuring these align with existing processes is essential to prevent disruptions to daily operations. This requirement adds an extra layer of complexity to the integration process.
At Net Consulting, our Managed Digital Integration service helps streamline your IT infrastructure, maintaining seamless connectivity between all platforms.
Contact us today to find out more.
5. Financial Costs
Legacy systems place a significant financial burden on organisations. For example, The UK Government spent nearly 50% of its annual tech budget – £2.3 billion – on maintaining outdated technology.
Research shows that this is not uncommon, with up to 70% of IT budgets tied to keeping legacy systems operational, leaving limited resources for innovation and strategic growth.
These costs can extend beyond maintenance. Legacy systems slow down productivity, as employees must work around poor workflows, sluggish performance, and manual processes. This loss of efficiency costs organisations with decreased output and higher operational expenses.
As mentioned above, outdated systems struggle to integrate with modern technologies, limiting an organisation’s ability to innovate and stay competitive. The security risks are equally concerning, as vulnerabilities in older systems increase the likelihood of costly data breaches.
Collectively, these factors make legacy systems a significant financial strain, emphasising the importance of modernising outdated infrastructure.
Why Are Legacy Systems Still Used?
With so many modern, efficient technologies available, it seems surprising that many organisations continue to rely on outdated systems. But there are a few key reasons why legacy systems stick around longer than they should.
Cost is a big factor. Upgrading to new hardware often comes with a price tag, not just for the tech itself, but for training staff and reworking existing processes.
Fear of disruption also plays a role. Switching systems isn’t always smooth. The process can involve downtime, productivity dips, or even data migration issues. Organisations can be hesitant to make changes that temporarily affect their operations, even if the end result is better performance.
Some businesses just aren’t aware of the risks outlined above. Without a clear understanding of how legacy systems can leave them open to security vulnerabilities, decision makers might assume the current setup is ‘good enough’ until something breaks.
How To Replace Legacy Systems
Replacing legacy systems is a multi-step process that requires careful planning and execution.
- Assess the Current System: Evaluate technical limitations, security risks, and inefficiencies to understand the system’s impact on business operations.
- Choose A Modernisation Approach: Select from options like rehosting, re-platforming, or rebuilding, depending on your goals, cost considerations, and scalability needs.
- Prioritise Security: Check that the modernised system complies with industry standards and provides robust security features to protect sensitive data.
- Enhance User Experience: Update the system’s interface to improve usability, streamline workflows, and increase employee and customer satisfaction.
- Plan Data Migration: Implement a clear migration strategy with backup plans and testing to ensure data integrity during the transition.
- Implement Change Management: Engage stakeholders early, provide training, and minimise disruptions to support the successful adoption of the modernised system.
- Develop a Long-Term Maintenance Strategy: Continuously monitor system performance, security and user feedback to keep the system optimised and aligned with evolving business needs.
These steps can help businesses transition away from legacy systems and start moving towards long-term success.
How We Can Help
We hope that this post answers why is it important to get rid of legacy systems.
At Net Consulting, we specialise in helping businesses and organisations modernise and take on secure, efficient IT solutions.
Call us at +44 (0)29 2097 2020 to find out more.
