Understanding Legacy Systems: Definition and Overview — Makimo – Consultancy & Software Development Services

As businesses evolve and grow, their technological infrastructure must keep up with the changes. However, many companies still rely on outdated systems known as legacy systems. In this article, I’ll overview legacy systems, why they matter, and how they affect businesses.

What are Legacy Systems?

Legacy systems refer to outdated software or hardware systems that are still being used in an organization. These systems were typically developed in the past, often decades ago, and have not been updated or replaced since then. They may be running on older hardware or operating systems that are no longer supported.

As Krzysztof has written in his article on reviving legacy systems with expert advisory, three qualities of legacy systems make them a valuable asset to most organizations:

Even if they are no longer compatible with current standards and requirements…
Legacy systems still work and are operational, and…
… the organization uses them.

In an earlier article on measuring software’s value, I put forward an argument that all systems, no matter legacy or not, have value because of their ability to perform their function and the data stored within them.

That makes legacy systems particularly inert to change, as everybody is kept in wishful thinking, for their software always delivers value to the organization.

The thing is that this line of thinking breaks catastrophically at some point in time.

Why Do Legacy Systems Matter?

Legacy systems can be a significant burden for businesses, especially as they continue to evolve and expand. These systems can be challenging to maintain and can hinder productivity and efficiency. They may also be vulnerable to security threats, as they lack the latest security features and patches.

Furthermore, legacy systems can be costly to replace or upgrade, as they may require significant organizational infrastructure changes. Many businesses hesitate to invest in new systems due to the potential costs and disruptions to their operations.

That’s further exaggerated by the hidden costs that might come along with the upgrade process. In many cases, the knowledge related to the operation of a particular system is distributed in the organization. Some of that information is lost with time, making upfront cost estimates somewhat difficult.

There’s one additional aspect: the organizational one. Human systems tend to grow around the applications as people adapt to their environment quickly. That means the habits of people using legacy systems have a lot of their processes built on top of the quirks introduced by the system, and the necessary change meets opposition.

How Do Legacy Systems Affect Businesses?

Legacy systems can have a significant impact on businesses in several ways:

Productivity: Legacy systems can slow down workflows and make it difficult for employees to complete tasks efficiently. This can result in lower productivity levels and reduced profitability for the business.
Adaptability: Legacy systems can be hard to add new features into. For example – current global airline systems cannot handle complex reservations such as Air New Zealand’s Skycouch™ and are an obstacle to new revenue streams of the business.
Competitive advantage: Legacy systems can be an obstruction to competing with other businesses in the industry. A great example of that was MySpace – one of the first big social networks in the world that couldn’t compete with Facebook, launched a few years later just because MySpace couldn’t keep up with the tempo of new features being introduced into the market.
Security: Legacy systems may be more vulnerable to security threats, such as cyber-attacks, as they lack the latest security features and updates. This can put sensitive company data and customer information at risk.
Maintenance: Legacy systems can be challenging to maintain, as they may require specialized knowledge and skills. This can result in higher maintenance costs and longer downtime for the organization.
Scalability: Legacy systems may not be able to handle the increasing demands of a growing business. This can limit the organization’s ability to expand and adapt to changing market conditions.

Conclusion

Legacy systems can be a significant challenge for businesses, especially as they continue to grow and evolve. These outdated systems can hinder productivity, compromise security, and increase maintenance costs. While replacing or upgrading legacy systems may be costly, it can ultimately lead to a more efficient and secure technological infrastructure for the organization.

That being, there are ways and approaches to mitigate that risk. At Makimo, we specialize in helping businesses navigate the complexities of legacy systems and modernize their technological infrastructure. Contact us today to learn how we can help your organization overcome the challenges of legacy systems and achieve your business goals.

What are some common examples of legacy systems?

Some common examples of legacy systems include outdated operating systems and hardware, including mainframe systems and industrial machines working on old operating systems such as Windows XP or Windows Server 2003. These systems have passed their end of life and are often no longer supported – or the support is very limited.

Another category of legacy systems is software legacy systems, which include programs written in older or obscure programming languages, which are less efficient and have fewer developers to maintain and update them. This category also includes bespoke software applications that were developed specifically for a company’s needs that may have become outdated but are still in use due to the lack of suitable alternatives or high replacement costs.

Why are legacy systems difficult to replace?

High replacement costs: Upgrading or replacing a legacy system may require significant financial investment, including the cost of new hardware, software, and training for employees.
Downtime and disruption: Transitioning to a new system can result in downtime and operational disruptions, which may negatively impact a company’s productivity and revenue.
Integration challenges: Integrating a new system with existing business processes, data, and infrastructure can be complex and time-consuming, posing a significant challenge to organizations.
Loss of specialized knowledge: Some legacy systems have unique features or customizations that are difficult to replicate in newer systems, leading to the potential loss of specialized knowledge and capabilities.
Change management: Some organizations or organizational units have their business processes built over legacy systems that are in use, which makes them susceptible to opposing changes to these systems and processes.

Can legacy systems be updated?

Yes, legacy systems can often be updated or modernized to some extent. This may involve upgrading hardware components, updating software to more recent versions, or implementing patches to address security vulnerabilities. In some cases, it might also be possible to refactor or re-architect parts of the legacy system to improve performance, reliability, or integration with newer technologies. However, it is important to weigh the costs and benefits of updating a legacy system against the potential advantages of transitioning to a more modern and efficient solution.

What are the risks of using legacy systems?

Using legacy systems can pose various risks to a business, including security vulnerabilities, lack of vendor support, limited scalability, and decreased efficiency. These risks can lead to increased operational costs, potential data breaches, and a negative impact on a company’s competitiveness in the market. The most severe risk a company can fall into is grinding to a halt with progress and innovation and being outcompeted by other companies.

How can businesses modernize their technological infrastructure?

Businesses can modernize their legacy systems through various approaches, such as upgrading hardware and software components, migrating to cloud-based services, implementing a service-oriented architecture (SOA), or opting for a complete system replacement. The choice of approach will depend on factors such as budget, organizational goals, and the specific needs of the business.

Can Makimo help businesses modernize their legacy systems?

Yes, Makimo helps businesses assess their legacy systems, identify potential risks and bottlenecks, and develop a customized modernization strategy. Our team provides guidance and support throughout the modernization process, ensuring a smooth transition to newer, more efficient systems that better meet the organization’s needs.