Legacy Software Modernization: Why It’s Worth the Cost

While dated software systems may provide consistency, they present organizations with several challenges, including limited growth, complex IT maintenance, and even UX limitations. Making the switch from your existing systems can be a difficult decision, but with cost-effective data modernization solutions for legacy systems, you can unlock a range of benefits for your team. So, is your business ready for legacy software modernization? 

Although designing and building new systems requires a financial and human commitment over a period of months, the impacts on your organization are worth it. In this guide, we’ll break down the benefits your organization can enjoy by modernizing your legacy software systems.

How Much Does Legacy Software Modernization Cost?

Before we dive into the benefits, let’s briefly discuss what a typical legacy application modernization strategy may cost. The short answer is that custom software projects tend to fall somewhere between thousands and hundreds of thousands of dollars. These costs cover design and development hours you’ll need to invest in.

Now, any project could fall outside of this range, as software projects range from simple apps to enterprise-level billing systems. The biggest impacts on the final cost include the software system’s size, complexity, and design. On top of this, it is smart to plan for delays or additional development hours during integration, especially if you outsource the project, as you’ll want to ensure your legacy software modernization strategy is as robust as possible.

So, why might these costs be worth it for your organization?

The Benefits of Legacy Software Modernization

Let’s take a look at some of the key benefits you can enjoy by modernizing your legacy software systems.

1. Create a Competitive Advantage

A common question surrounding legacy system modernization approaches is whether the organization can actually gain an advantage over its competitors. Simply put, modernizing your legacy software opens the door to new features, functionality, and processes that leverage the capabilities of modern technology and third-party platforms. This can help you quickly establish an edge over key competitors and win high-margin clients or projects.

By leveraging legacy software modernization, you can unlock better scalability and maintenance of your IT infrastructure, give employees new ways to complete tasks on the go, and even provide a new service that no competitor offers.

2. Generate Happier Users

Another potential benefit of modernizing your legacy software systems is creating a more streamlined user experience. Older systems tend to have poor user interfaces where users experience constant friction. Sure, they’re familiar. But training your team to operate on a new, more modern system can be game-changing.

A new system presents your organization with the opportunity to give users a more streamlined process that eliminates workarounds and automates steps that a human doesn’t need to perform. This will make them more efficient while giving them a more modern system to enjoy.

With the right technology strategy in place, you can ensure the aesthetics of your new system match the needs of your end users.

3. Better Align With Business Processes

Following a robust legacy application modernization strategy can help you better align your tech with business goals and processes. As your business grows and evolves, legacy systems likely can’t keep up, which can lead to costly workarounds. 

Is your system holding back the growth of your company or requiring additional solutions to bridge the gap? If so, it’s time to consider legacy system modernization.

4. Better Handling and Utilization of Your Critical Data

Leveraging a new system allows your organization to properly leverage its critical data. Over the past 5 years, data has expanded exponentially and will continue to do so for the foreseeable future. Do you currently collect more data than your application can handle, or would you like to leverage real-time data analytics in your system? The time for legacy system modernization is now.

Modern programming languages, data platforms, tools, and infrastructure enable you to build real-time data analytics and data visualization into your product to bring about insights and make meaningful decisions.

5. Improved Security and Business Continuity

Another benefit of legacy system modernization is better security for your organization and its data. Authentication, authorization, user access, and data security need to be defined early in the process to be incorporated into the solution’s design.

On top of this, as systems continue to age, business continuity becomes all the more challenging. With a new system in place, you can ensure your business is set up for long-term growth and success.

6. Lower Maintenance Costs

With older systems in place, it’s common to have fewer people who understand how the system was originally architected throughout. Documentation may be limited or not up to date, and there are fewer resources available for those who want jobs in the technologies that were used. This makes maintaining the system hard and potentially expensive.

Because technology evolves quickly over time, it’s critical to have the right legacy application modernization strategy in place to avoid costly challenges.

Frequently Asked Questions

How can I modernize legacy applications?

Legacy system modernization can be achieved through several routes. You can refactor outdated code, migrate to a new cloud system, or design and develop a new framework from the ground up.

What is legacy software?

Legacy software refers to outdated applications or systems still in use despite no longer being actively maintained or supported. These systems can hold organizations back as they grow.

When should I modernize legacy software?

Legacy system modernization is recommended when existing systems become costly, insecure, or incompatible with newer technology. Signs include performance bottlenecks, compliance issues, limited vendor support, and difficulty scaling to meet business growth.

How much does it cost to modernize legacy software?

While each project is unique, legacy software modernization could range from the thousands to the hundreds of thousands.

Thayer Tate

Thayer is the Chief Technology Officer at SOLTECH, bringing over 20 years of experience in technology and consulting to his role. Throughout his career, Thayer has focused on successfully implementing and delivering projects of all sizes. He began his journey in the technology industry with renowned consulting firms like PricewaterhouseCoopers and IBM, where he gained valuable insights into handling complex challenges faced by large enterprises and developed detailed implementation methodologies.

Thayer’s expertise expanded as he obtained his Project Management Professional (PMP) certification and joined SOLTECH, an Atlanta-based technology firm specializing in custom software development, Technology Consulting and IT staffing. During his tenure at SOLTECH, Thayer honed his skills by managing the design and development of numerous projects, eventually assuming executive responsibility for leading the technical direction of SOLTECH’s software solutions.

As a thought leader and industry expert, Thayer writes articles on technology strategy and planning, software development, project implementation, and technology integration. Thayer’s aim is to empower readers with practical insights and actionable advice based on his extensive experience.