“Never change a running system” perfectly sums up the paradox of the legacy system in modern business. Once the height of innovation, many legacy systems are now symbols of outdated software and rigid, slow processes.
Yet these legacy applications remain a crucial part of most IT landscapes—even those that are otherwise modernised—and are still in use because they support core business processes. Many companies with a long history continue to rely on legacy software that was built for very specific needs.
Because legacy systems are deeply embedded in operations, they can’t just be swapped out easily.
In this article, you’ll learn about the risks of legacy systems, why companies may choose to keep legacy systems, and strategies for successful modernisation.
What Is a Legacy System?
A legacy system is an older (but not always obsolete) part of your IT landscape that’s still in use today, even though newer systems exist.
These systems often support mission-critical operations and business processes, which makes updating or replacing them risky and complex.
The term “legacy” means inheritance or something passed down. In IT, it can imply a burden from the past, but legacy software isn’t automatically bad. Its long life can mean reliability that newer options can’t match.
The challenge is to see both the value and the risk of a legacy system and create a smart modernisation plan that reduces risk while preserving what’s essential.
A Necessary Evil: Legacy Systems in Companies.
At first glance, choosing to use legacy systems might seem at odds with modern business goals. But there are good reasons why companies stick with legacy software, despite knowing the risks:
Lack of Urgency.
- Many legacy systems have been reliable for years with few issues.
- Sectors like banking, insurance, and government often see no need to replace legacy applications that have served them well.
Security and Compliance.
- Ironically, legacy systems can seem more secure because they lack modern attack surfaces.
- Industrial and manufacturing settings often prefer older systems that don’t need updates to meet new regulations.
Strategic Cost-Benefit Analysis.
- The costs of modernisation don’t always justify the benefits.
- Many legacy systems were custom-built and deeply integrated, making migration expensive and risky.
- Disruptions during system migration can be costly, pushing companies to delay.
Technical and Operational Challenges.
- Data migration from legacy systems is often resource-heavy and risky due to massive amounts of historical data.
- These systems are deeply woven into business workflows, so replacing them can affect many other processes.
Human Factors.
- Employees may have years of specialised knowledge about the legacy system.
- Modernisation means retraining, and it can reduce the value of this expertise, often leading to resistance to change.
Types of Legacy System, Why Legacy Software Is Still Used and Why Businesses are Migrating Legacy Systems.
When people think of legacy systems, they often imagine ancient mainframes with green screens. But legacy system examples can be surprisingly modern-looking on the surface. What makes a system “legacy” isn’t always age—it’s the difficulty of replacing it due to deep integration in business processes and the risk of disruption.
Legacy System Examples.
Types of legacy systems include old software applications built on outdated architectures, aging operating systems, proprietary hardware and software that’s no longer supported, or custom-built software systems that no one else knows how to maintain. Examples range from banking core systems developed decades ago to specialized industrial controllers, airline booking systems, and even healthcare record software that’s still in use because it holds critical patient data.
Why Do Businesses Use Legacy Systems?
Legacy systems are still used because they’re reliable and essential. But maintaining legacy systems comes with real challenges. Legacy code can be poorly documented, making updating legacy systems risky and expensive. Legacy system migration projects must handle data migration carefully to avoid loss or corruption.
Why Businesses Need Legacy System Modernisation.
That’s why companies need clear legacy system modernisation strategies. Whether it’s replacing a whole system or application, integrating with newer systems through APIs, or selectively modernizing parts, planning is key. Migrating legacy systems can be complex, but with the right approach, you can keep your business running smoothly while evolving toward the future.
The Legacy Application as a Ticking Time Bomb: 5 Risks of Legacy Systems
Even with their benefits, legacy systems come with serious risks companies can’t ignore:
1. High Security Risk.
- Outdated software often lacks security updates.
- Vulnerabilities make them prime targets for cyber attacks.
- Lack of encryption and non-compliance with data protection laws like GDPR can be big liabilities.
2. High Costs.
- Inefficiencies in legacy software systems lead to higher energy and operating costs.
- Expensive maintenance due to scarce spare parts and specialised skills.
- Resources tied up in old systems limit budgets for newer systems and innovation.
3. High Risk of Failure.
- Aging hardware is prone to breakdowns.
- Finding replacement parts is tough, risking serious downtime.
- Maintenance is hard if documentation is missing or the original developers are gone.
4. Limited Scalability and Maintainability.
Compatibility issues with modern systems and programming languages.
Manual data transfers lead to inconsistencies.
Hard to adapt to changing business needs or new models.
5. Human and Organisational Risks
- Expertise fades as employees retire or move on.
- Frustrating user experience for staff and partners working with outdated systems.
- Resistance to change as teams stick with familiar workflows.
It's All About Balance: Strategies for Updating Legacy Systems
Despite these risks, maintaining legacy systems is often necessary. The real challenge is finding ways to update them without halting critical business processes.
Complete Data Migration or Partial Modernisation?
Companies must decide between replacing legacy systems entirely or modernising them step by step.
Inventory and Assessment of the IT Landscape.
Start by understanding which legacy systems and applications you rely on.
Assess questions like:
- What legacy software is still critical?
- Which business processes depend on these systems?
- How integrated are they into the overall infrastructure?
- Would it be easier to replace certain components?
- What are the current operating costs and risks?
- How well do these systems work today?
- Is security compromised beyond what’s acceptable?
This helps create a tailored legacy system modernisation plan that balances cost, risk, and benefit.
Step-by-Step Migration and Modernisation
- Instead of a big-bang replacement, companies can migrate legacy systems gradually.
- Updating components one at a time reduces risk and avoids major disruptions.
- It allows time to develop interfaces and ensure smooth integration with newer systems.
Legacy Integration via the Cloud
- Moving to the cloud doesn’t always mean replacing legacy systems.
- Cloud-based integration platforms (iPaaS) enable connecting legacy systems to modern IT with APIs.
- This reduces costs and avoids the need for complete replacement.
Companies can outsource individual functions to the cloud while legacy systems continue to run, reducing data silos and dependencies.
Despite the obvious disadvantages, maintaining legacy systems is often less a choice than a necessity. The challenge for companies is to find ways of dealing with these systems – without bringing critical business processes to a standstill. Complete migration to a new system? Partial modernisation? Making this decision means careful planning in advance.
Interested in Data Migration? Successful Legacy System Modernisation with Lobster
Let’s be honest: you probably have legacy systems in your company. Maybe you’ve even planned modernisation in theory but put it off because of costs, complexity, or just being too busy with daily operations.
We get it. That’s exactly why we built the Lobster Data Platform.
Our iPaaS solution means you don’t have to throw out your entire system. We recognise the strengths in the legacy systems you’ve relied on for years.
Our approach delivers maximum compatibility:
- Over 90 pre-built connectors and more than 50 input/output paths to link all your systems and applications.
- Easy drag-and-drop configuration with no programming required.
- Empower even non-technical staff to help manage integration themselves.
Whether you want to modernise piece by piece or keep key legacy systems running while adding modern capabilities, Lobster makes it easy.
Sounds good?
Contact us today to schedule your demo and see how Lobster can help you modernise without the headaches.
