Many businesses still use outdated CRMs, data storage systems, and other proprietary software that simply can’t compete in the modern world. Perhaps the biggest example of this could be found within the federal government of the United States. In total, the United States executive branch spends 75% of its information technology budget on maintaining legacy systems that cost up to 3x more to maintain.
Many people still hold onto the myth that keeping their legacy software is cheaper in the long-run, considering the continual rate of change that occurs in the IT world. Unfortunately, many legacy softwares are not equipped to keep up with the rate of change in cyber security, data storage, etc. that help businesses compete in a digital world. Let’s explore the importance of updating legacy software for digital enabled solutions to improve your business’s bottom line.
The Problems of Legacy Systems
While legacy software is generally incompatible with a modern business world, many business owners and officials still deem it as more safe and even more user friendly. Many people fall for the fallacy that it requires technical expertise to navigate the UI of many modern technologies. Of course, nothing could be further from the truth.
Another barrier prohibiting many businesses from making the switch is the idea that installing new software is expensive and complicated. With how streamlined cloud computing software and analytics software has become, it only takes a simple download and click to begin integrating all of the applications you use for your business into one central, convenient location.
So what’s the big issue with legacy software anyway? The biggest problems with legacy applications, include:
- Little opportunity to update in iterative changes in proprietary softwares
- Outdated software doesn’t receive software patches
- Security patches are out of date
- More expensive to upgrade
- Legacy software may not integrate with other applications
- Changes to existing applications may have to be manual
Beyond this, leveraging big data for consumer life cycles and managing customer relations is generally impossible with outdated, inefficient data collection services. Outdated applications also put you and your customers at risk of a data breach, which is surely the death of your brand.
Fortunately, if you don’t want to invest in a multitude of new business applications you can hire software teams to consolidate and rebuild legacy software to compete with the modern world.
Advantages of Modernized IT Solutions
Using outdated applications only increases time wasted, which equates to money being wasted. Aside from saving time and money, there are numerous advantages to modern IT solutions that will help your business thrive in a competitive niche.
- Streamlined workflow processes
- Improved data sharing and data mining
- Improved team collaboration
- Iterative software patches/upgrades
- More secure
- Greater mobility with tasks
In terms of managing customer relations and acquiring new customers, relying on outdated technology can’t keep up with modern day applications that would provide you this data.
Adaptation is the Key to Survival
The challenge of modernizing software enabled solutions across companies and government is that many people don’t view it as an important part of their workflow. With big data and machine learning providing quicker solutions and more accurate data, companies are using these applications to greatly expand their business and provide the best customer experience possible. Failing to adapt to the business landscape is one of the greatest reasons that some businesses thrive, while a majority of those fail.