Uncover the future of SPARC Emulation with Charon SSP.

Download Datasheet

Integrating Legacy Systems with Modern Corporate Applications: Strategies, Challenges, and Best Practices

Talk to an Expert

Table of Contents

    Articles

    As per data, the system integration market will reach USD 665.6 Billion by 2028. And there is a reason behind it.

    Here is the problem: Your current legacy set up is constantly hindering your company from leveraging modern technology like cloud and other. What if you can make the most out of modern corporate applications?

    Integrating legacy systems with modern corporate applications helps enterprises to take advantage of modern technologies. This reduces your traditional manual work without a lot of training about the new integration. Let’s look at the process, steps, best integration strategies, challenges and an alternative plan.

    Legacy System Integration: What Does That Mean?

    Legacy system integration connects outdated software with modern tech. The process links legacy infrastructure to current databases, ERPs, CRMs, and SaaS apps.

    The aim? To get old and new systems working together seamlessly. This supports business operations.

    Integrating legacy systems with modern corporate applications ensures different generations of technology collaborate effectively. It brings legacy systems into the modern age without migrating them completely. That means there is no need to worry about data migration.

    Businesses rely on this process to stay competitive while still using their existing software investments.

    The end result is a harmonious tech ecosystem. One where old and new work hand-in-hand and drive the organization forward.

    Benefits of Integrating Legacy Systems with Modern Corporate Applications

    Integrating legacy systems with modern corporate applications is a smart alternative to full-scale migration. Here’s why:

    Benefits of Integrating Legacy Systems with Modern Corporate Applications

    1. No Need for Full-Scale Migration

    Full-scale modernization is costly and risky. It disrupts business operations. Integrating legacy systems with modern apps is a practical alternative. You keep valuable systems while gaining access to modern features and tools. All without a complete overhaul.

    2. Say Goodbye to Manual Data Migration

    Integration eliminates the need for manual data migration which is time-consuming and prone to errors. With integration, existing data is seamlessly accessed by modern tools. No complex data transfer procedures needed.

    3. Cost-Effective Alternative – Boosts Your ROI

    Integration has initial costs, but it reduces operational expenses and boosts revenue over time. When comparing the year-on-year cost, integrating legacy systems with corporate application emerges as an affordable solution that provides measurable returns.

    4. Smooth Transition for Old Employees

    Integration allows long-time employees to keep using familiar legacy systems. They can gradually adapt to modern apps. This makes the transition smoother with minimal retraining.

    5. Accelerate Deployment of New Solutions

    Integration enables faster implementation of new technologies. Businesses can quickly respond to market demands without lengthy overhauls.

    6. Ensure Compliance and Mitigate Risks

    Integration allows legacy systems to incorporate advanced compliance features. Companies can meet industry regulations and standards more easily. They can also minimize risks related to outdated security protocols.

    7. Enhance Customer Experience

    Legacy systems that support back-end operations can be integrated with modern front-end apps. This improves the overall customer experience. It provides real-time access to services, faster responses, and personalized interactions.

    8. Leverage Valuable Existing Data

    Legacy systems often contain years of valuable data. Integration allows businesses to continue using this data within modern apps. They can extract valuable insights without losing historical information.

    9. Boost Employee Productivity

    Integration automates tasks and reduces manual work. This boosts employee productivity. Staff can focus on strategic activities rather than repetitive data entry.

    10. Improve Decision-Making

    Analyzing decades of data through modern apps enhances decision-making. Companies can identify patterns and insights that were previously inaccessible. This leads to more informed strategic decisions.

    When to Integrate Legacy Systems with Modern Corporate Applications?

    Integrating legacy systems with new modern corporate applications can transform your business. But timing is everything. Let’s look at the questions you need to ask yourself before taking this important step.

    Are you managing a large volume of data?

    If your system handles a large volume of data and needs security measures, it’s time to integrate. It’s about keeping that data safe and sound.

    Do you want to ensure business continuity?

    If your system executes mission-critical workloads, integration is necessary. It preserves those must-have functions while bringing in new tech.

    Is compliance with industry standards a concern?

    If your system is robust and packed with data but you need to share this data to stay compliant, integration is your next step.

    Do you want to improve user experience?

    When your system works well but you want to incorporate more features to make it user-friendly, integration is a smart move.

    Are high data migration costs a concern?

    Does your system hold critical data but migrating them comes with a hefty cost? Integrating with a new application can be a smarter and an affordable way to tap into that data.

    Should you avoid costly modernization approaches?

    Other modernization approaches are expensive in comparison to integration. This way you can spend your money on other important aspects of your business.

    Do you need to meet regulatory compliance?

    In industries like healthcare or finance, migrating to a new platform can be a compliance challenge. Integration helps you meet regulatory requirements without the hassle.

    Top Strategies for Integrating Legacy Systems with Modern Corporate Applications

    1. Integration Platform as a Service (iPaaS)

    How IPAAS Works

    iPaaS is a set of automated tools that help integrate software applications deployed in different environments. Large enterprises often use iPaaS to connect applications and data residing on-premises, in public clouds, and private clouds.

    Generally, an iPaaS platform offers pre-built connectors, business rules, maps, and transformations to simplify application development and integration workflows.

    Some providers also offer custom development kits to modernize legacy applications, adding capabilities like mobile support, social platform integration, and business data management.

    Importance of iPaaS

    The key value of iPaaS stems from the challenges of application and data integration. Enterprises have long grappled with managing diverse applications, but these apps must work together.

    Modern businesses require seamless continuity between applications and the valuable data they create and process.

    How it Works?

    An iPaaS provider hosts the application servers and infrastructure and integrates tools and middleware to help developers build, test, deploy, and manage cloud-based software.

    Most iPaaS platforms accelerate integration flow development using pre-built connectors and business rules for multi-tenant environments.

    Key Functionalities of iPaaS

    Common iPaaS capabilities include:

    • Simplify the use for deployment, integration, and app management
    • All-inclusive integration tools and connectors
    • Support for public cloud, SaaS, and on-premises apps
    • Many iPaaS solutions are equipped to handle legacy programming languages and data formats, such as X12, EDIFACT, or COBOL.
    • Offers flexibility for custom connectors
    • Data processing and transformation
    • Scalable performance, offering real-time and batch integration
    • Provides the tools required to adhere to standards like GDPR, HIPAA, ISO, and more.
    • Lifecycle management and monitoring and robust security mechanisms.

    How to Choose the service provider?

    When selecting an iPaaS provider, businesses should consider their existing applications and integration goals. After subscribing, users can choose the provider’s tools and services to achieve their desired integrations, like connecting data from one app to another.

    The iPaaS handles integration mechanics, including data governance, tool updates, and infrastructure maintenance.

    2. API Integration

    overview of enterprise level API Development

    An application programming interface (API) is a set of code that allows two software programs to interact and work together. It helps transfer data, features, and functions between these applications.

    What is API integration?

    API integration is the process of linking two or more software applications through their APIs (Application Programming Interfaces). This allows the applications to communicate and share data smoothly.

    For modern businesses, this integration is vital. It enables the automation of workflows, boosts operational efficiency, and enhances user experiences by allowing different systems to work together effectively.

    How does it work?

    Imagine a legacy inventory management system (App X) requires updated supplier prices to adjust its stock levels. It communicates with a modern pricing database (App Y) through its API. The pricing database then sends the updated information back to App X.

    Likewise, if App X needs to analyze sales trends, it can connect to a newer analytics tool (App Z), via its API to retrieve detailed reports.

    Key Features:

    • APIs enable efficient communication between applications, sharing only essential data
    • They allow seamless integration of hundreds of applications into a single system
    • APIs integrate smoothly with cloud and microservice architectures, providing flexibility and scalability for both internal and third-party applications
    • They are also reusable, speeding up app development cycles and ensuring consistency and reliability across multiple applications.

    3. Point-to-Point Integration

    Connecting two software apps or systems directly (without intermediaries) to share data and communicate is called point-to-point or peer-to-peer (P2P) integration. This usually means a one-to-one link between two endpoints, which can be software, databases, or hardware.

    Consider point-to-point integration in the following situations:

    • Your team lacks experience with other integration methods and you’re handling just one integration.
    • The integration involves a simple task, such as updating customer information in your CRM whenever changes occur in your ERP system.
    • You’re working with two in-house systems, not third-party applications.
    • Both systems are hosted on your own premises.

    4. Middleware (Enterprise Service Bus)

    Enterprise Service Bus

    An Enterprise Service Bus (ESB) is a central system that connects multiple applications into one network.

    Picture this: legacy banking system with various applications – one for processing transactions, another for managing accounts, one for customer support, and one for reporting. When a transaction happens, the system must update account balances, notify customer support, and create reports. Each app needs the information in its own format. The Enterprise Service Bus (ESB) handles this by sending transaction data to a message queue. These applications subscribe to this queue, and message transformers adjust the data into the format each one requires. If an app is offline, the ESB holds the message and sends it once the app is back online.

    While an ESB can simplify integration more than point-to-point methods, it has drawbacks. It doesn’t limit the number of message calls or balance the load, which can cause crashes during high traffic.

    ESBs are usually used on-premises and may not fit well with microservices setups. They are better suited for internal systems rather than third-party applications and can manage large data volumes. This is why ESBs are seen as a legacy solution that might not be ideal for modern systems.

    Best Practices of Legacy System Integration

    Here’s a step-by-step guide on how to integrate legacy system with modern corporate applications:

    Know Your Current Setup: First, take stock of your legacy system. Figure out its pros, cons, and how it works with other systems.

    Make a Business Case: Spell out how integrating will boost efficiency, cut costs, and give you an edge. Use this to get buy-in.

    Catalog Data and Map: Processes List all the data in the legacy system. Map how it flows through to spot potential integration snags.

    Pick the Right Integration Approach: Choose a strategy that fits your needs, like point-to-point, ESB, API, or iPaaS.

    Assemble an Implementation Team Put together a skilled team that knows both the legacy and modern systems.

    Set a Timeline: Map out the integration schedule with milestones and deadlines. Stay on track.

    Automate Where Possible: Use automation to cut manual work, reduce mistakes, and keep things consistent. It speeds things up too.

    Track and Modify: Once live, monitor the integrated system’s performance. Optimize based on metrics and user feedback.

    Address Security Concerns: Legacy systems often have dated security. Put strong measures in place to protect the new setup.

    Manage Change and Training: Be ready for pushback. Clearly explain the integration’s benefits. Train staff on the new system so they can hit the ground running.

    Partner Wisely: Picking the right modernization partner is key. They should provide the tools, know-how, and support for seamless integration.

    Challenges of Integrating Legacy Systems with Modern Corporate Applications

    Integrating looks easy unless you know the full picture. In reality, it comes with many challenges. Let’s dig deep into them to understand the process better.

    Unwillingness to Learn and Adapt

    Employees are often reluctant to change their workflows, especially when it means integrating legacy systems with new ones. They may fear the unknown or just prefer what they know.

    Also, employees with a non-technical background may prefer sticking to old technology rather than learning something new.

    Data Quality Issues

    In some instances, the data in legacy systems doesn’t match modern standards. The format and structure can be way off. You’ll need to clean it up and modernize it before you can integrate successfully. If you don’t, you could end up with inconsistencies and errors in the integrated system.

    Missing Documentation

    Many legacy systems don’t have proper documentation. This makes integration harder, especially when the original developers have left the organization. You are left with a system that is tough to understand and change.

    Lack of Expertise

    Integrating legacy systems often calls for skills in old technologies that are hard to find. Modern engineers are reluctant to learn older programming languages. This makes it tough to find people who can do the job.

    Doesn’t Fits Well into the Company Culture

    Legacy applications have been there with an organization for decades. Sometimes they are so ingrained in the company that any change would massively disrupt workflow.

    Proprietary Limits

    Legacy systems often have proprietary architecture. This means you can’t change or modernize them without permission from the original vendor. This vendor lock-in can be a big barrier to integration.

    Compatibility Problems

    Legacy systems and modern apps don’t always play nicely together. Legacy systems may have limited APIs, old data formats, and dependencies on old hardware. All of this can often make integration challenging.

    Emulation: A Smart Alternative to Integration

    On surface, integrating legacy applications with modern corporate applications may seem simple. Especially when you stack it up against the alternatives: completely or partially reengineering the software or starting from square one with a brand new system. But it’s not always the best path.

    Emulation offers a smarter alternative that lets businesses keep running their legacy apps without the integration headaches. It eliminates the need to modify legacy apps to fit modern environments.

    It also bypasses the need for hard-to-find legacy expertise, reduces downtime, and preserves workflows. It’s a straightforward, lower-cost alternative that avoids company culture clashes or security vulnerabilities from outdated systems.

    With Stromasys’ emulation solutions, companies can continue using their trusted legacy software on modern hardware. No need to rework existing systems or deal with compatibility issues, high costs, or security risks. This means no complex data cleanups or overhauls of proprietary architectures. Legacy apps run just as before, only faster and more securely.

    We are here to extend the life of your legacy application.

    Talk to Our Experts

    Frequently Asked Questions (FAQs)

    1. What is Legacy Application Modernization?

    Legacy application modernization transforms outdated, monolithic systems into contemporary, flexible solutions. This process mitigates risks associated with older systems while leveraging new infrastructure benefits.

    2. What are Examples of Legacy Applications?

    Legacy applications often include:

    • Mainframe-based systems
    • Older ERP solutions
    • Custom-built business software
    • Outdated databases and data warehouses
    • Web applications using deprecated technologies

    3. Why Do Legacy Systems Struggle to Meet Modern Consumer Demands?

    Several factors contribute to legacy systems’ struggles:

    • Limited flexibility
    • Frequent downtime
    • Poor user experience
    • High maintenance costs
    • Security vulnerabilities
    • Compliance challenges

    4. What are the Four Strategies for Dealing with Legacy Systems?

    There are four main strategies for dealing with legacy systems:

    1. Lift and Shift

    This approach involves updating hardware without modifying the legacy application itself.

    2. Replacement

    Companies implement entirely new systems to replace outdated ones.

    3. Retirement

    Organizations decommission legacy systems that no longer provide value.

    4. Integration

    This method connects legacy systems with modern applications through APIs, middleware, or other integration tools, preserving existing investments.