Contact us anytime to know more — Amit A., Founder & COO CISIN
Think about it. Your new computer is running Windows 10 and not Windows XP for a reason. Your current computer has more power and capability than your old one.
The business that you are running is also different from what it was ten years ago. Using outdated, underperforming software to manage your business would be like running Windows XP on a new ZenBook.
What Is A Legacy System?
When was the last time that you used a Pager? Most likely, it was in the 1990s. The technology may not be as old as you thought.
Your life could depend on pagers, a primary communication tool in the healthcare industry. Some countries are now shutting down their pager services. Three-quarters (75%) of US organizations use at least one pager.
Pagers are not only outdated but also expensive. Why is this technology still used so much?
Answer: some systems can be difficult to replace, especially those vital to an organization's business process. The use of pagers is not unique to the healthcare industry.
It is a relatively common "legacy system/technology" in many other industries, including finance, transportation, banking and insurance.
Some of the largest federal agencies have a number of legacy systems. For core operations, such as processing large volumes of data, they use legacy applications that run on an outdated mainframe.
These systems have been fine-tuned to provide specific functionality over time. Then why bother to modernize them?
Legacy systems require modernization. They can crash at any time. This is what happened during Tax Day. The Internal Revenue Service could not process electronic tax returns due to technical issues.
The IRS didn't specify exactly what happened, but the outdated IT systems could have been a factor at the time. Two of these were nearly 60 years old.
A legacy system's age isn't always the defining factor. A system may be considered a legacy due to its age, lack of support, or inability to satisfy the requirements of an organization or business.
Due to their architecture, technology or design, such software can be difficult to support, integrate, upgrade or maintain. In fact, according to the survey, over half of CIOs have to spend 40-60 per cent of their work time managing legacy IT instead of focusing on strategic initiatives.
We can therefore conclude that legacy IT is a major barrier to digitalization.
Hidden Costs Of Legacy Software
Many businesses continue using outdated software, regardless of age and quality. They argue that the software works fine and can still handle most tasks.
Why fix something that isn't broken?
There are many reasons why you should "fix" legacy systems. One of the most important reasons is to reduce operating costs.
The US Government spent 80% on operations and maintenance. These expenditures were primarily for aging legacy systems, which presented efficiency, security, and mission-risk issues.
The operation and maintenance of the top 10 legacy systems costs taxpayers approximately $337 million per year.
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Prepare For The Digital Future
Some companies still lack legacy modernization initiatives despite the risks and problems associated with outdated software.
They would only re-engineer the existing solution in an emergency, like a system failure.
Companies need to digitally ready their business models to bridge the gap between current offerings and the expectations of customers.
The legacy software, however, is just one part of the issue. Other times, the mentality that goes along with legacy software is a much bigger problem. This is why proving the software modernization business case to the initiating party is the initial challenge.
Business Case For Software Modernization
Why modernize the legacy system? These benefits show that modernizing legacy systems is important to business digitalization.
But despite the many benefits of modernization, there are often good reasons for the opposition.
Consider The Risks And Challenges
When discussing a modernization project, two main arguments are usually used. The two main arguments are time and cost.
Even if two times as many programmers are hired, it will take years for a developer team to create a solution. In some cases, the cost of software reengineering may exceed initial investment.
Estimating System Modernization Costs
Modernizing is expensive. The alternative to this is not to do so at all. As with any software project, an estimate of the effort is required.
This can be done by using a variety of methodologies and tools.
COCOMO: This method was developed in the 80s. It uses the following simple formula: Man-Months = K1*(Thousands of lines code) K2.
K1 and K2 represent constant values that are chosen based on the size of the team, the experience of its members, and the level of complexity of the software. This methodology has two models: COCOMO estimates maintenance costs, and COCOMO II computes migration and reengineering.
FPA: FPA is a classic method that uses the project's functional requirements to evaluate the delivered functionality to the end user.
This manifests itself in UFPs or unadjusted function points. The points are then analyzed and compared to different project KPIs, such as performance or quality.
FPA is the inspiration for popular frameworks like ESTIMACS or SPQR/20. Each of these takes into account different factors when measuring function points.
SPQR focuses primarily on estimating complexity in algorithms, data structures and code. ESTIMACS, however, considers other factors, such as the project's business aspect, including the number of staff members or the hours spent.
Putnam Model: This method allows you to estimate the time and effort required to complete a project when you know the size.
The number of code lines measures the size of a project. It is the easiest estimation method because it does not require hard-to-get data. Any company can collect information on the size, time (man-hours) and effort of previous projects.
This model lets you easily adjust the schedule when size or effort changes.
Checklist To Ensure Successful Modernization Of Your Application
Check out our 7-point checklist for successful modernization projects:
Assessment Of The State Of Legacy System
Software considered legacy does not necessarily fall into the "older" or "outdated". When identifying legacy software, many other aspects need to be considered.
You should assess the systems you have in place to identify any current or future issues. It is important to be thorough and systematic in your assessment. It would help if you considered all the aspects of technology, from architecture and code to visual appearance while considering your business goals for future product development.
Choose The Approach To Modernization That Will Deliver The Most Value and The Quickest
Choose the approach to modernization that will best meet your requirements and help you achieve results quickly.
Consider existing products as an alternative to modernization. SaaS solutions are available for a fraction of the price of a traditional solution. Suppose your system is designed to solve a specific problem, or you wish to add more functionality.
In that case, custom product development might be your right choice. Adopting agile software-development practices will help speed the process up and provide value quickly.
Prioritize Simplicity And Rethink Architecture
The complexity of the structure can often cause legacy systems to not perform to expectations. Less is more when it comes to architecture and functionality.
Implement only the essential features. To make your product more scalable, consider a microservices approach. Ensure that the new application is compatible with all the other tools in your company.
Consider several options and their needs when developing your application if you plan to replace any tools soon.
Select The Right Technology Stack For Optimal User Experience And Performance
Reengineering can be a challenging task. Make sure to use technology that is future-proof and solid. Technology selection should be based on the product.
Speak to your IT department or a tech consultant. A reliable, performant and efficient product will be built with the right technology stack. To achieve the best possible results, adopt a solid quality assurance and test process.
Future System Growth Document
Introduce (or adopt) best practices from other companies to avoid making the same mistakes that led you to re-engineer your current solution.
Clean, well-documented code will make your software simpler to extend and maintain.
Set Up A Support Schedule And Retirement Plan For The Legacy Systems
You will need legacy software even if your new system is running smoothly. Don't get rid of everything at once. Archive and document your solutions to make them easily accessible and reusable when needed.
You will need to continue supporting your legacy product for a while and then plan on retiring it only once your new system runs.
Budget Allocated To Training And Updating Systems
Your employees may need time to learn the new software after years of using the old system. Invest in training your staff to improve performance.
Plan regular updates to your system. You will face a new modernization problem if you do not keep your products up-to-date.
Assessment Framework For Legacy Systems
Analysis of Technologies
Our first step is to analyze and identify the current product's technology stack. We can then determine if the vendor still supports and can support the used programming languages or frameworks.
Suppose the entire product is based on obsolete technologies. In that case, we will likely need to completely redesign it as part of the modernization process.
Architecture Audit
If the technology stack is still in use (or certain parts), performing an audit is important. You can then focus on those system components that are working well.
You will also be able to see the interdependencies between the system's different components, so your future changes won't impact the entire product.
Code Review
The codebase of legacy software is usually excessive and requires regular review. The software will "rot" if it is not properly maintained.
This can lead to design issues and conflict when trying to add new features to the system or upgrade some areas. As part of modernization and changes, our team conducts a code review to assess the "update ability" and quality of the source code.
Review Of UI/UX
This principle also applies to UI/UX design. To determine which areas of the interface require a "facelift," a thorough review is needed.
Performance Test
Performance testing aims to uncover any other potential problems with legacy systems. A system with poor performance or a major problem can be re-engineered.
Opportunities And Current Needs For Growth
We focus not only on the business requirements and needs of the present but also on the opportunities for future growth.
We help you to make an informed choice by giving you a well-founded and unbiased view of software modernization.
Legacy Software Modernization: Best Practices
It's now time to choose the best modernization techniques.
Modernization Of Legacy Enterprise Systems And Their Replacement
A well-chosen plan best manages the management of legacy systems modernization.
Consider these popular strategies for legacy system modernization when planning your tech transformation.
ADM: ADM refers to a strategy that aims at understanding existing software assets, such as their functionality, requirements, and components.
ADM's main benefit is its analysis and design-based approach to modernization, as opposed to source-to-source conversions. Architecture-driven modernization is primarily used to achieve platform and language interoperability and independence.
ADM allows projects to be more agile.
SABA: SABA provides a framework to plan organizational and technical aspects during legacy systems' evolution and migration.
SABA's iteration method helps choose different modernization options, from erasing old software to outsourcing. This framework addresses various legacy systems problems and provides a way to evaluate the implications for future software decisions.
Reverse Engineering model: This is a migration strategy in which legacy applications migrate gradually to the new environment.
Legacy data migration, however, is the final phase. Reverse Gateways are used by applications to access legacy data in the new environment. Reverse Engineering Model can be a great choice for long-term, high-cost projects where the pace of technology may undermine them.
Value-Based Decision Model (VDM): VDM determines the most appropriate software renewal method based on economic and technical metrics.
The model is used when the economic return or system quality is less than expected. It helps to decide how best to revive a system.
DevOps: Contribution DevOps is a way to speed up legacy modernization by deploying software quickly with low bug and error rates while adhering to the operational IT environments.
Modernization Of Legacy Methods
Different development techniques influence the system's evolution - from adding one line of code up to complete reimplementation.
Two methods are available to deal with legacy problems that require major structural changes. These include the revolutionary (big bang) method and the evolutionary (band-aid). Both have their advantages and disadvantages.
Revolutionary Method: Revolutionary method is based on developing and implementing a strategy to replace legacy systems.
The old system must be shut down, and a brand new one built from the ground up. It may seem extreme, but it's sometimes better to completely retire a system to prevent serious problems like security breaches, data loss, and system downtime.
It can also be used when the product can no longer solve business issues, and it would make little sense to port or reengineer it for new technology.
Evolutionary Method: This approach uses a step-by-step, systematic software modernization. This method is less disruptive: it does not interrupt the main business processes, and the risks to the organization are significantly reduced.
It often becomes a "band-aid" method where the focus is on fixing the problem instead of eliminating the causes. Unsurprisingly, many companies choose to upgrade their existing platforms instead of replacing them. Synchronizing operations between legacy and new digital IT teams can be challenging:
- Compatibility issues.
- Due to their serial output, communications involving legacy systems may consume more bandwidth on the network than those involving modern technology.
- Maintaining security in legacy systems can be challenging, as users are not guaranteed protection against new threats.
There are still many successful examples of mainframes that have been integrated. Liverpool, Victoria, is a good example.
The car division of this insurance company suffered because its website mapped to the mainframe. The company created more intuitive pages by separating mainframe processing from the front end. It also made it easy to add new features.
The approaches we will describe to modernize legacy systems are based on revolutionary and evolution methods.
Modernizing Legacy Systems: Several Approaches
Reports predict that 65% of companies will invest heavily in new technology platforms to modernize their legacy systems by 2023.
It estimates that by 2023, digital transformation expenditures will increase from 36 per cent today to 53 per cent. How an organization chooses to invest its funds can have a significant impact on how effective it is.
We have listed three approaches for modernization to help you choose the best one for your legacy issues. Both Migration & Enhancements, as well as Correction & Growth, rely on an evolutionary approach.
Still, the third method, Complete Software Reengineering, is a revolution.
Cognizant also offers an alternative approach classification based mainly on the amount of technology applied to legacy systems to modernize them.
This classification includes four approaches: total system transformation, duct-tape approach, improving existing and not changing the systems. This happens when a business decides to wait to transform and instead observe the market while evaluating whether its systems can handle the rapid growth.
We'll refer to Cognizant later to broaden the view of legacy modernization.
Legacy System Modernization Techniques
The legacy modernization approach uses specific technologies to upgrade outdated technology. The complexity of legacy modernization techniques and approaches, as well as the methods they employ:
Encapsulation: Encapsulation allows you to reuse legacy components. Encapsulation allows the existing code to remain in the current environment while connecting it with the new interface and allowing access via API.
This helps to leverage an application and expand its value and features.
The technology behind encapsulation is wrapping components in a different interface easily accessible by other software components.
Little changes in the code reduce the risk. Encapsulation, therefore, is one of the fastest and most cost-effective solutions. Encapsulation is an option when the legacy system contains high-quality code and has significant business value.
Encapsulation won't solve existing problems, like maintenance or upgrading issues, because it focuses on the interface, not the inner workings of the legacy systems.
Rehosting: Rehosting moves an application from a mainframe to another physical, virtual or cloud-based infrastructure.
It is the least expensive and most risky technique. Re-engineering can be lengthy, but rehosting takes less time and has no negative effects on your business. The system will continue to operate in the same manner.
Modernization is best achieved by migrating from closed systems to open ones, such as multi-tiered SQL-based x86 environments or cloud computing.
The cost of x86 architecture is lower, and the space and power requirements are reduced.
Cloud migration allows for greater flexibility in resource scaling, allowing users to scale their resources according to demand.
Cloud-based operations are more secure and stable and allow for continuous updates. They also require less upfront capital and don't require hardware. Cloud migration is possible using replatforming or refactoring and the rehosting technique.
Rehosting is a technique that allows an application to be forklifted into the cloud without modifying any of its code.
Rehosting is a resource-efficient migration method but doesn't use cloud native features like replatforming or refactoring.
Replatform Migrations: Replatform migrates the code for a new platform while maintaining existing functionality.
Even small changes, such as using managed databases or adding an auto-scaling feature, which automatically increases or decreases computing resources, will help you get the most out of your cloud infrastructure. It's fine because not every application needs to be cloud native. Replatforming is a great way to optimize costs and get the base functionality of the cloud without requiring resource commitments.
Code Refactoring: Code refactoring involves restructuring and optimizing code without changing external behavior.
Refactoring an application component is a way to solve technology issues and improve the features and structure. Re-coding a portion of an application allows organizations to maximize the operational efficiency and cost-effectiveness of their cloud operations by utilizing cloud native features.
Nevertheless, certain technologies aren't compatible with the cloud. It would help if you then looked at SaaS alternatives.
Rearchitecting: Rearchitecting is the process of re-architecting an application to take advantage of newer and improved capabilities.
The cost, risk and results of this technique are medium.
Rebuilding: Rewrites application components while maintaining their scope and specification. Redesigning your application can also open the doors to many new processes, features and functionality that take advantage of the latest technology.
Replacing: Sometimes, replacing an app entirely with another tool is better than investing in modernization.
In this situation, reusing existing legacy business logic is not feasible. However, reengineering and customization of packages and rewriting business logic could be part of the process.
Modernization methods impact the system in different ways. Encapsulation, hosting, and replatforming all affect the platform.
Problems in technology and architecture can be solved by refactoring and re-architecting. The ability to change and add features and functions is possible with rebuilding and replacing.
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Conclusion
Software modernization is laborious, complex, and risky regardless of its chosen method and approach.
The results of software modernization are worth all the effort. A company believes the digital transformation will reach macroeconomic proportions in 3-4 years. This will change the way businesses operate and the world economy.
Their research states that "more than half of the global economy will be digital by 2023, requiring new types of enterprises to thrive and compete."
To meet the needs of the digital economy, companies must stop relying upon outdated software. They should also modernize the core technologies.
Modernization is not a project that can be completed in a single day. It should instead be viewed as an ongoing process.
