An outdated IT landscape is one of the largest barriers to digital transformation within any organization. Even though the definition of Legacy IT varies between organizations, outdated technology simply no longer meets the needs of the modern (mobile) user. Legacy IT is costly and lacks agility. More importantly, Legacy IT stands in the way of digital transformation, innovative technologies, and cloud migration. Nobody benefits.
Why do organizations refuse to part with Legacy IT?
In times of rapid growth, organizations often still heavily depend on their outdated IT landscape on an operational, organizational, and technological level. Many IT departments claim that their organization relies heavily on outdated technology for its daily operations. Perhaps you are familiar with the phrase “Legacy software is fine. It is outdated software that continues to function”. This statement is, unfortunately, not true.
Why the modernization hype?
It can be a time-consuming and costly investment to operate Legacy IT smoothly. Keep in mind, particularly: the skill set of your IT staff. If we consider the Common Business Oriented Language (COBOL) from the 1950s, it is easy to imagine that the knowledge of this programming language will become increasingly scarce. Speed is another critical driver behind application modernization. A modern IT landscape is agile and can, therefore, quickly respond to changing market dynamics.
Legacy IT is costly
It is essential to consider the increasing costs of Legacy IT. An example would be the high license cost of Oracle compared to the free Microsoft SQL server. Outdated systems stand in the way of your productivity. The continuous costs of maintaining Legacy IT systems devour an ever-increasing portion of your IT budget. This happens at the expense of more rewarding investments in innovative technology.
Legacy IT stands in the way of innovation
If a company operates on Legacy IT, this is an undesirable situation. As an entrepreneur, your aim is to benefit from innovative technologies, as this will improve your company or organization. Imagine: you are a telecom provider who wants to offer services that require innovative technologies. Your aim is to process larger amounts of data to work more efficiently and to serve your customers better. Digital transformation, therefore, is not just about saving money. On the contrary, the main objective is the continuous development of your company based on the valuable insights you gain.
Investing in the modernization of Legacy IT is equivalent to:
- investing in compatibility with other modern technologies
- investing in scalability to improve the efficiency of your organization
- investing in greater mobility, allowing you to reach more customers in even more creative and effective ways
Rip and replace
Starting a modernization process does not necessarily mean that you should start from scratch. An example of a method of modernization would be to completely rewrite a Legacy IT system, in COBOL or Delphi, into a modern cloud-ready solution. This can be done in an invasive or a non-invasive way. Invasive modernization refers to (almost) completely rewriting the system, while non-invasive modernization initially preserves valuable parts of the system.
Do-it-yourself, OR seek help?
Many entrepreneurs who start their own digital transformation find themselves stuck halfway through the project. The digital transformation often proves to be an unforeseen challenge due to the size and complexity of the operation. An additional challenge for many IT managers is the continuation of their daily processes while the digital transformation is happening. As a Managed Partner of Microsoft, Mediaan assists/supports companies and organizations in their digital transformation, making their organizations future and/or cloud-ready.
Would digital transformation benefit my organization?
Absolutely. Innovation may require an immediate investment, but it is worth it in the long run. We believe that innovative technologies can make a difference in every organization. Regardless of the industry, when you are using innovative technologies as an organization, you are always a step ahead of the competition. We strive to enable you to connect, inspire, and grow through the power of innovative technologies and smart processes.
For more information contact us.
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