Modernisation of Legacy Systems

Outdated systems often no longer receive security updates, making them vulnerable to cyber attacks. Hackers can exploit publicly documented vulnerabilities to penetrate the system. As the security architecture of legacy systems is often not designed for modern threats, they lack protection mechanisms such as modern encryption methods, multi-factor authentication or intrusion detection systems. It can also be difficult to close security gaps in old systems as the source code is no longer maintained or is proprietary. This increases the risk of data theft, system failures or financial losses due to ransomware attacks.

Although the legacy system offers security through experience, it increases the complexity of modernisation. A lack of information or contacts makes the work even more difficult, especially when it comes to dealing with legacy code, as developers who no longer work for the company have often worked on it or interfaces are no longer available. Saying goodbye to the tried and tested is a hurdle for many companies. In addition, legacy applications often have a monolithic structure, which hinders flexible further development. Modifications or extensions are difficult because small changes to one part of the code can have unforeseen effects on the entire system. This limits companies' ability to innovate and makes them less competitive.

Old software may not be compatible with new operating systems or modern hardware, which can lead to difficulties when integrating with new technologies and cloud services. For example, many modern systems only support 64-bit architectures, while older applications still run on 32-bit systems. In addition, new standards in the IT landscape, such as APIs or security protocols, cannot be easily implemented if the legacy system is not designed for them. Companies are then faced with the choice of either developing expensive workarounds or replacing the old system with a modern solution. This can be particularly problematic if the system is used for critical business processes, as a change can be associated with business interruptions and considerable risks.

Manufacturers often no longer offer technical support for legacy systems. Bug fixes or further developments are therefore sometimes expensive and time-consuming. Without official updates, companies either have to employ internal specialists or call in external experts, which often incurs high costs. In addition, required drivers or additional software may no longer be available, which means that the system can no longer function smoothly. If the system fails, companies have to rely on improvised solutions, which leads to longer downtimes and loss of productivity. It is particularly critical if the legacy system controls business-critical processes, as the failure of such systems can lead to considerable economic damage.

Maintaining and operating older systems is often more expensive than modernising them. Specialist knowledge is sometimes required, which becomes increasingly difficult to find over time. Developers who are familiar with outdated programming languages or technologies retire or leave the company, making internal knowledge transfer more difficult. In addition, old systems often require special hardware that is no longer produced in series, making spare parts expensive and difficult to obtain. Energy consumption can also be significantly higher with older systems than with modern solutions, resulting in additional costs in the long term. These factors mean that the total cost of ownership (TCO) of a legacy system is often higher in the long term than that of a modern, cloud-based solution.

Old software can be inefficient and scale poorly, leading to slow processes and loss of productivity. Legacy systems are often not designed for high data volumes or modern working methods, such as distributed working or mobile use. This can lead to delays and long loading times, especially if many users access the system at the same time. There is also often a lack of automation options that are standard in modern systems, which leads to inefficient manual processes. Especially in times of digital transformation, an agile IT infrastructure is crucial for a company's success, but legacy systems often prevent rapid adaptation to market changes.