Latest news with #legacySoftware
Forbes
17-06-2025
- Business
- Forbes
A Modern Approach To Legacy Software
HAVANA - SEPTEMBER 14: Men relax next to a car as Cuba hosts the week long 14th Non-Aligned Nations ... More summit September 14, 2006 in Havana, Cuba. Leaders from around the world continue to arrive for the Non Aligned Movement that currently has 116 member countries (53 of Africa, 38 of Asia, 24 of Latin America and the Caribbean and one from Europe (Belarus). (Photo by) Software is new, then immediately old. Rather like a new car, the moment you drive it out of the dealership, it starts to lose value and become old and used. It's a talking point that software engineers ponder over long into the small hours. One camp says that new versions of software are needed all the time, the other (if it ain't broke, don't fix it) camp says that legacy software is still around for a reason, it still works. There are software administrators and engineers in government IT departments all over the world using database tools from the 1990s. There are banks and financial institutions around the globe running Java and COBOL software language systems from the same epoch. That's not to say that the public sector and finance are necessarily slow; it's just that sometimes these software services just become deeply embedded and entrenched. VP of engagement and field CTO at technology analyst house GigaOm is Jon Collins. Viewing the world of always-on cloud-native technologies that constantly seek to evolve enterprise IT away from legacy code, Collins says that even though it's a truism that an application becomes legacy the moment it has been deployed; these older COBOL age systems could still perform more effectively if they were given an additional layer of integration and management control. That integration and management promise is embodied in the comparatively new notion of platform engineering, with its self-service internal developer platform structures that enable developers to manage their deployment pipelines and operations infrastructure. Does Technical Debt Stifle AI? Unsurprisingly, it doesn't take AI long to feature in this debate these days. The cloud-native community advocates the need for technologies that far outstrip the big data tools that we considered contemporary a decade ago. Low-code workflow automation company Pegasystems Inc. is among those warning enterprises over the risks of technical debt and legacy systems in relation to the adoption of AI and onward to quantum etc. The firm conducted a study with UK-based research specialist Savanta, which suggested that legacy dependency happens because organizations can't stop supporting their legacy applications even if they'd like to, because the systems are still business critical. For its analysis, Pega defined technical debt and legacy systems as outdated hardware, software, or technology platforms that remain in use due to their critical role in business operations. This is despite challenges such as limited scalability, security vulnerabilities, high maintenance costs and incompatibility with modern technologies. According to Don Schuerman, chief technology officer, Pega, technical debt is the implied (often intangible) cost of additional work or strain experienced when using these applications in business. That strain is often down to the siloed nature of disconnected systems (this app doesn't connect to the backend and show my last transaction… and so on) and the cost of maintenance. Schuerman says that applications that are resource-intensive to maintain help in 'perpetuating an organizational culture of waste' today. Recognising the fact that some companies (less than 10% in Pega's study) feel legacy applications caused no problems for their business whatsoever, Schuerman and team suggest that almost half (47%) say their oldest legacy application is between 11-20 years old, while more than one in ten (16%) run apps between 21-30 years old. Pegasystems clearly used its study of legacy mindsets to its Pega Blueprint tool. This is workflow software that developers can use to 'feed legacy process documentation' into so that it can move outdated systems into cloud-ready, future-proof workflow applications. As detailed here before now, technology surveys (even the 'independently executed' ones) generally have a payload of 'findings' that they are designed to deliver. An alternative analysis of these issues by headless CMS company Storyblok suggested that developers harbor 'widespread dissatisfaction and embarrassment' due to the poor state of the tech stacks they work with. The company thinks that 'an overwhelming number of engineers' say that their technology stack is negatively impacting their job, with some even considering quitting in the past year. When asked what made these engineers most unhappy in their day-to-day jobs, the chief culprit was 'maintaining and fixing bugs on legacy systems', followed by 'dealing with non-technical stakeholders who don't understand technical limitations' and a lack of clear requirements and constantly shifting priorities. Again, Storyblok has a headless API-first developer-friendly content management system to sell, so it has a vested interest in highlighting the limitations of pre-cloud-native technologies. Looking at the issues here from a user and business safety perspective, Scott McKinnon, CSO for UK and Ireland at Palo Alto Networks says that legacy IT systems pose a severe, yet too often underestimated cybersecurity risk to organizations across every sector. 'Many businesses continue to rely on outdated infrastructure, software, and applications that were not designed to withstand the sophisticated, multi-faceted attacks that are in use today. While digital transformation accelerates, the foundational components of many enterprises remain rooted in the past, creating vast and exploitable attack surfaces that cybercriminals are quick to leverage,' explained McKinnon, speaking to press this month in London. Some agree that the UK public sector faces the same challenges, but at an even greater scale, as highlighted by a National Audit Office report. Although UK-specific, this free-to-view report has dedicated sections covering legacy systems and the challenges of implementing digital change in the face of outdated technologies. "The escalating challenges of technical debt are causing critical vulnerabilities across organizations globally. This is about far more than just legacy hardware; it encompasses accumulated shortcuts, unaddressed architectural flaws and the continued reliance on software and systems that are no longer supported or patched,' said McKinnon. 'As organizations rapidly adopt new digital initiatives, the underlying foundational technical debt creates a dangerously brittle security posture, providing easily exploitable avenues into critical assets that modern security solutions struggle to adequately protect." In search of the bottom line here, we may need to realize that legacy software will always exist. When (or if) we do get to a point where all enterprise applications are cloud-native and therefore more continuously updateable, we may have already entered the age of quantum computing, so even freshly cut cloud code will start to smell like it's past sell-by date. Yes, there are legacy software issues, yes modern workflow technologies are more efficient, no, we can't replace all legacy software tomorrow, no, generation-Z software developers are unlikely to learn COBOL rather than Python, yes, we need to find ways to live in a diverse world of dynamic software that's still changing. That might ultimately be what a modern approach to legacy software ends up meaning.
Forbes
13-06-2025
- Business
- Forbes
The True Cost Of Legacy Software: How To Understand The Full Picture
Eric Giesecke is the CEO of Planet DDS . getty As leaders, we often stick with what we know. It's comfortable, it's familiar and, most importantly, it seems reliable. But when it comes to legacy software systems, this comfort zone may be costing us more than we realize. Many executives focus on the upfront costs of new technology but fail to calculate the ongoing losses of sticking with outdated systems. As technology evolves, it's worth considering how legacy systems compare with modern cloud-based alternatives, particularly in areas such as scalability, integration and access to emerging innovations. The upfront costs of maintaining legacy systems don't take into account all the factors businesses should consider. These outdated systems, for example, often rely on on-site physical servers, requiring significant infrastructure investment. Setting up a new server typically can cost up to $10,000, and additional expenses for software licenses, maintenance and support can rack up quickly. These systems also come with additional operational expenses: increased power usage, heat output, supplementary cooling requirements and the constant strain on bandwidth during data backups. Another overlooked cost is the knowledge dependency these systems create. When key IT personnel leave, they take with them specialized knowledge crucial for maintaining and troubleshooting these legacy systems. Equally concerning is the added IT complexity of maintaining server-based systems, especially as an organization grows and scales. Security and compliance risks are another concern. Legacy software is a prime target for cyberthreats. When sensitive data is stolen, the consequences can devastate a business, with recovery fees running into millions of dollars. This is particularly damaging for industries handling sensitive customer data, such as healthcare and financial services. The fallout extends beyond immediate costs to include increased cybersecurity insurance premiums, loss of business, potential class action lawsuits and reduced business value for future acquisitions. The physical security of on-premises servers presents another vulnerability. In the event of a fire, flood or other unforeseen disaster, these servers are susceptible to damage or destruction, leading to irreversible data loss and operational disruption. The financial toll of such an event can be catastrophic, with lost revenue and recovery costs multiplying quickly. While the drawbacks of legacy software are well documented, there are some valid reasons some organizations choose to keep it—at least for now. Regulatory or compliance frameworks may require on-premises data storage or auditing transparency that cloud providers can't yet fully guarantee. In these cases, modernization may be delayed by necessity rather than choice. Legacy systems can also offer more control over infrastructure and workflows, especially in highly customized environments. Businesses that have invested years in tailoring their systems may be hesitant to risk functionality loss or reintegrate complex tools. While cloud technology is helping to address these concerns, it's important to weigh the trade-offs carefully and factor in operational needs, regulatory requirements and long-term goals. The ROI Of Cloud-Based Platforms Think of modern cloud-based platforms as growth accelerators, not just cost-cutters. Cloud solutions give you access to scalability, AI and automation. According to McKinsey, companies that go beyond basic cloud adoption and strategically integrate cloud across their operations could unlock as much as $3 trillion in value globally through faster product development, better decision-making and improved operational resilience. Cloud solutions also unlock the potential to utilize open APIs, which allow businesses to integrate tools seamlessly. Unlike traditional software, where companies are locked into rigid systems, modern cloud platforms with open APIs enable custom technology stacks tailored to specific business needs. This shift gives organizations the flexibility to choose best-in-class tools for everything from finance and customer management to logistics and marketing automation. These capabilities are especially impactful in healthcare, where integrated systems can streamline operations and enhance patient care. According to another McKinsey report, 62% of healthcare leaders believe that generative AI has the greatest potential to improve consumer engagement, yet only 29% have started implementing it—highlighting a significant gap between opportunity and adoption. Cloud infrastructure plays a foundational role in enabling this transformation. With the right tools in place, AI can help personalize care, increase transparency and empower patients to make better healthcare decisions. McKinsey also estimates that adopting AI could lead to a 5% to 10% reduction in healthcare spending across both public and private sectors, demonstrating that cloud-enabled innovation isn't just about efficiency, but long-term sustainability and value creation. Making The Transition Despite the benefits of cloud-based solutions, there still might be resistance when transitioning from legacy software. This transition requires careful planning and execution. Here's what I've learned from overseeing successful digital transformations: • Secure team buy-in. Your team needs to understand why the change is necessary and beneficial. Without buy-in, undergoing such a significant change becomes pointless, and your team might feel disconnected as to why it matters. • Prepare for short-term disruption. Your team also needs to know that the transition might not be all smooth sailing. There will be a period of learning new software, auditing data and migrating data, but it is temporary. • Start with core operations. Focus first on critical business functions where modernization will have the most immediate impact. Businesses can begin by adopting cloud solutions in phases, such as integrating AI-driven analytics or cloud-based CRM tools first. The hidden costs of legacy systems are worth careful evaluation. While modernizing your technology stack does require upfront investment and thoughtful change management, it can also open the door to improved agility, security and long-term value creation. The organizations that take time to assess their systems will be best positioned to respond to changing market demands. For some, that may mean adopting cloud-based platforms now; for others, it may involve planning a phased transition or identifying ways to modernize selectively. The right path forward will depend on your industry, regulatory environment and appetite for transformation. But by understanding the true cost of maintaining the status quo, leaders can make more informed decisions about what modernization looks like for their organization. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
