9 reasons why you should start modernizing legacy applications

Many organizations rely on legacy applications for the continuity of business processes, which, despite using outdated technology, often seem to function well at first glance. However, many organizations are not fully aware that modernizing such a legacy environment brings a number of significant benefits. NetRom therefore provides a clear overview of the ten main advantages.

Of course, modernizing legacy applications requires time, money, and effort. However, an organization that is willing to undergo this process and successfully complete it will reap the benefits. A modernized environment is easier to scale and secure, while also improving productivity at lower costs. This, in turn, enhances the organization’s competitive position. By adopting modern technology, an organization is better prepared for future developments and can more easily comply with regulations. Knowledge and support for legacy systems are scarce, but there is much more expertise available in the market for modern technology. This makes an organization less vulnerable when it comes to maintaining and developing systems.

Moving away from legacy applications and opting for modern technology also increases employee satisfaction and effectiveness. This is because a modern system works more reliably, enables more integrations with other systems and departments, and offers an intuitive and pleasant user experience.

1. Lower operational costs

Legacy systems are generally inefficient in use and maintenance, leading to higher operational costs. Additionally, legacy applications consist of inefficient and outdated code, which only a limited number of employees within an organization understand. Due to their age, maintenance is often required to keep the systems operational, which takes a lot of labor hours and, therefore, money.

By opting for modernization of a legacy environment through modern code, applications, and cloud computing, you reduce system failures and increase process efficiency. This results in lower costs in the long term. Modern, cost-efficient IT systems are designed with reliability and speed in mind, and they are easier to maintain and upgrade in less time. This leads to a reduction in labor costs.

2. Improved cybersecurity

Legacy systems are vulnerable to various types of attacks because, due to their age, they no longer meet current security standards. The code is outdated, and security solutions are harder to find.

Modern applications offer the ability to implement the latest security measures, such as encryption and authentication, which protect data and systems. Regular updates and patches are available for modern systems, continuously improving security.

Furthermore, modernization provides better and real-time insight into an organization’s network and endpoints. It also enables recurring security tasks to be performed automatically and more efficiently, such as patch management and monitoring. This results in stronger cybersecurity.

Implementing these security measures also reduces the risk of data breaches and other security incidents. A data breach must always be prevented: an organization that has personal data stolen or accidentally made public can face significant fines under the General Data Protection Regulation (GDPR). The maximum fine is €20 million or 4% of annual global turnover for large companies.

3. Improving scalability

An organization that wants to survive in a competitive market must adapt to changing market conditions. Unfortunately, legacy systems are rigid when it comes to scalability. Due to outdated code and underlying technology, it is difficult to further develop and expand these systems.

Legacy applications are often built in a monolithic architecture. By breaking down monolithic applications into smaller, independent microservices, it becomes easier to scale specific parts of an application individually. This increases flexibility and enables quick responses to changing needs without negatively affecting other components. Additionally, the use of API-driven architectures allows for smooth integration with new technologies.

When organizations choose to modernize their legacy applications through containerization, such as Docker, and orchestration tools like Kubernetes, they improve the portability and scalability of applications. Container technology ensures that applications can run in various environments, and the use of Kubernetes simplifies the management and automatic scaling of containers, which can automatically adjust based on predefined criteria.

When organizations modernize their existing legacy environment and migrate to a cloud environment, they automatically benefit from the scalability inherent in this technology. Cloud computing provides a flexible infrastructure that easily adapts to changing conditions. Organizations can easily scale capacity up or down through predefined rules or an online dashboard. The advantage is that they only use the capacity they need and avoid paying for excess.

4. Enabling system integrations

Modern systems offer more opportunities to integrate innovative technologies such as artificial intelligence, machine learning, and data analytics. Through APIs, middleware, and container technology, seamless communication with other systems and applications is also possible. This allows organizations to work more effectively and potentially develop new services and products, enabling them to remain competitive in the market. The ability to quickly add new functionalities without compromising the stability of a system is essential for growth and innovation.

5. Increasing productivity

By applying modern technologies and smart code, an organization can increase productivity and, in turn, improve profitability. Modern applications are designed with speed and reliability in mind. This minimizes downtime, ensures smooth business processes, and enables automated workflows.

Additionally, modern applications offer better capabilities for automatic data exchange between departments within an organization. This leads to fewer manual tasks. Departments can collaborate more efficiently, saving time when performing tasks.

Because modern systems use new technologies, they are more reliable than legacy systems. They are also easier to maintain and experience less downtime, which positively impacts productivity.

Modernizing applications through migration to the cloud also creates an environment where employees can perform tasks more flexibly and quickly. For example, employees can work from any location using a smartphone or tablet.

6. Ensuring future-proofing

An organization that chooses to modernize its legacy applications can respond more effectively to current and future developments. The use of modern technologies, such as artificial intelligence, machine learning, and container technology, enables the organization to adapt to changing demands and developments, expanding and further modernizing applications. It also becomes easier to integrate with third-party tools and applications.

7. Complying with regulations

Legacy software often does not meet the latest regulations and standards, such as the General Data Protection Regulation (GDPR). This puts organizations at risk of fines and legal issues. By using modern technologies and architectures, organizations are better able to adapt their systems to new laws and regulations. Modern technology also enables the automatic generation of necessary reports related to compliance. Due to the flexibility of a modern system, there is no need for major changes to the underlying infrastructure. This flexibility makes it easier to meet compliance requirements and reduces the risk of fines and legal proceedings.

8. Faster time-to-market

Modernizing legacy applications leads to a faster time-to-market for products and services for several reasons. Due to their modern design, updated applications are easier to adapt to changing market conditions. They are also better able to efficiently handle higher workloads and multiple data types. Additionally, modern applications allow organizations to exchange data more easily between different platforms. Organizations also gain access to modern technologies, such as cloud computing, artificial intelligence, and machine learning. All of these factors enable an organization to respond faster and more effectively to market developments.

9. More knowledge of modern technology available

Legacy systems are typically built with outdated technologies and use obsolete programming languages. This knowledge is becoming increasingly scarce, and employees who possess it may choose to work elsewhere or retire. This situation makes an organization vulnerable and poses a risk to continuity. By adopting modern technology, it becomes easier to attract and retain qualified IT personnel. There is also a wealth of training available for modern technologies, allowing IT staff to maintain and expand their knowledge through courses and certifications.

For end-users, legacy applications are often not user-friendly. They operate slowly, with outdated user interfaces that are not intuitive. Modern systems are more user-friendly, faster, and make it easier for employees to perform their tasks. Modernization also offers the opportunity to automate repetitive and time-consuming tasks. Employees can focus on more valuable and challenging tasks, which increases job satisfaction as they can focus on tasks that provide more fulfillment.

Thinking about modernizing your legacy applications?

As shown by the above benefits, modernizing your legacy applications is definitely worth it. After modernizing your legacy applications, your organization will be better positioned to operate competitively. A modern architecture makes it easier to implement improvements and respond more effectively to market developments. When developing new products or services, the time-to-market is also significantly shorter. This makes it easier to gain an edge over your competitors.

Are you considering modernizing your legacy applications but unsure where to start? NetRom Software, as a nearshore partner, has years of experience with such projects for various clients across many industries. With over 500 highly skilled IT specialists, NetRom can support your organization in realizing your ambitions. They not only know how to technically execute a migration project but also possess significant domain-specific knowledge and deep experience.

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