Legacy technology is not simply technology which is no longer in use and/or old.
In fact, in many organisations, they are still very much a part of the IT infrastructure.
But it is known as ‘legacy’ when it is:
- no longer able to be purchased
- based on outdated technology
- out of support from the supplier
- and difficult, or impossible, to update
So, in fact, we’re not just talking about 40-year old tech here; systems which are only a few years old could be considered legacy!
Today one of the significant reasons why FSOs make the move to the Cloud is to decommission these legacy platforms in order to move to a modern workplace.
But for a lot of organisations, the timing just isn’t right, there’s a fear of change, and the technology is working just fine…for now.
So, when is it time to say goodbye to your legacy platforms and welcome in the Cloud?
- We don’t have money to burn
Did you know between 60-80% of banks’ IT budgets is spent on legacy maintenance? We’re talking millions of pounds here of ‘technical debt’ on systems which could be decades old. Such technology can be unstable and if support has stopped from the supplier, it becomes an expensive undertaking when something goes wrong. The time has come to think about switching off when the cost of maintaining this old technology is even greater than replacing it with new solutions would be.
- Governance and security issues
Clearly when support for technology ceases, it can become risky business. An unpatched issue leaves an organisation more vulnerable to attack, especially in an industry such as financial services where card and transaction data is heavily governed. There are serious repercussions for an FSO if something goes wrong and the time has come to think about decommissioning when your system is at risk of being compromised.
- Productivity is not what it used to be
Over time performance becomes slower (the same could be said for old age!) Therefore, the longer organisations hold on to such systems, the more productivity is affected. Slow performance is felt organisation-wide, whether this is for day-to-day users who become frustrated, or the accounts guys as productivity is down and costing the business money (more money!) A move to the Cloud means users can work from anywhere and collaborate using data which is now accessible and searchable. The time has come to think about retiring technology when it is becoming inefficient and no longer keeping up the pace.
- They’re a barrier to transformation
We don’t need to tell you about the difficulty of analysing an organisation’s greatest asset – data- on legacy technology. More and more, financial services are realising they need to unlock the potential of the data they hold for a better customer experience, but clearly outdated technology is an obstacle. If you’re unable to scale because of your current IT, you risk losing out to your competitors who are switched on to the possibilities a modern workplace could bring. The time has come to migrate when the gap is simply getting bigger between your systems and the current trends and customer demands.
There comes a point when legacy systems no longer provide any value and they’re only there because it’s the norm.
If you’re considering retiring your legacy systems and want to know why now is the time, join our webinar “Digital Transformation in Financial Services: Why cloud migration doesn’t have to break the bank” on 30th November. Sign up below.