Legacy System Modernization: Approaches for 2024 and Choosing the Right One for You

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Did you know that 44% of CIOs consider legacy systems as the major roadblock to the growth of their company? This could be due to many factors – operational inefficiencies, downtime, high maintenance & hidden costs, high energy consumption bills and many more. Consequently, enterprises are shifting towards legacy system modernization. In fact, a survey shows that 87% of IT decision-makers think that legacy systems modernization is crucial for their success.

Legacy system modernization is the process of upgrading outdated IT infrastructure and creating a modern IT setup. This helps organizations not only address modern-day challenges but also compete with new-age businesses.

To help the CTOs and key decision-makers with the right strategy, we have compiled the top 8 legacy system modernization approaches that will be revealed here. You will also discover the key essentials of choosing the right strategy for your business.

8 Legacy System Modernization Approaches

Legacy system modernization helps organizations to stay efficient, competitive and future-ready. Let’s look at the top legacy system modernization approaches that decision makers should consider.

1. Rehosting

Rehosting or “Lift and Shift” is the process of redeploying application components to a different infrastructure (on-premises or cloud) without altering the code or features. Only the underlying hardware platform gets replaced with a modern infrastructure. Legacy applications and their core functionalities will remain as they are. This strategy is often used to quickly migrate legacy applications to the cloud and leverage its benefits without the need for code changes.

Pros:

• Cost-effective and quick legacy modernization approach
• Minimizes code modifications, reducing project complexity
• Faster and less risky compared to other strategies
• Ensures optimum business continuity

Cons:

• Does not address underlying code issues

2. Refactoring or Re-Architecting

It’s a legacy system modernization approach of restructuring and optimizing the existing code without changing its existing behavior. Refactoring enhances system flexibility, allowing for easier adaptation to current conditions. This strategy is advised for companies transitioning from containers to microservices. The shift can be significant. Some changes are small, others large. But all contribute to a more robust system.

Pros:

• Enhances code quality and maintainability
• Aligns the codebase with current software development practices

Cons:

• Can be time-consuming and costly
• May not be sufficient for systems with fundamental architectural issues

3. Rebuilding or Rewriting from Scratch

Rewriting is the process of developing a new application from scratch while keeping the requirements and functionalities of the legacy system. This allows the opportunity to leverage modern frameworks, codes, and tools.

Pros:

• Allows for the creation of a highly efficient, state-of-the-art application
• Developers can avoid past mistakes and implement best practices

Cons:

• Time-consuming and expensive
• Risky; as it needs a lot of testing to match the previous functionalities

4. Encapsulation

Encapsulation reuses core system components while removing legacy code. It links these components to new access layers through APIs. This approach to updating old software creates a fresh interface for existing parts, tapping into the app’s capabilities. It often requires careful planning as some parts may need more work than others. If your goal is just to update the interface, encapsulation works well.

Pros:

• Reduces risks by preserving legacy code and data
• Allows for gradual modernization without disrupting operations

Cons:

• Limited improvement in performance and scalability.
• May not fully leverage new technologies.
• Doesn’t fix maintenance issues

5. Application Program Interface (API)

API modernization creates interfaces for legacy systems to work with new apps and services. It expands old system capabilities without major code changes. The process varies in complexity. Some interfaces are simple, others intricate.

Pros:

• Enables integration with modern systems and platforms
• Extends the functionality of the legacy system without major changes

Cons:

• Does not address underlying code or architectural issues
• Potential security risks if not properly managed

6. Cloud Migration

Moving legacy systems to the cloud shifts apps and data to cloud infrastructure. This improves scalability and flexibility while cutting costs. It often boosts system performance. The transition can be gradual or swift, depending on system needs.

Pros:

• Enhances scalability and flexibility
• Reduces infrastructure costs and maintenance

Cons:

• Potential data security and compliance issues
• Requires careful planning and execution to avoid disruptions

7. Service-Oriented Architecture (SOA)

Service-Oriented Architecture (SOA) breaks legacy systems into smaller, reusable services. These can be developed, deployed, and maintained separately. SOA improves system flexibility and scalability. It eases integration with other systems. Implementation complexity varies by system size and structure.

Pros:

• Enhances system flexibility and scalability
• Facilitates integration with other systems and technologies

Cons:

• Can be complex to implement and manage
• Requires significant changes to the existing system architecture

8. Buying a New Application

Lastly, buying a new application is another viable legacy system modernization approach where businesses replace their old system with a new application. This approach involves selecting a solution (for example, cloud-based solutions such as SaaS) and substituting it with the current application.

Pros:

• Typically, a new application is built with modern technology and shows better performance
• Modern application provides better security features

Cons:

• Implementing a new application comes with a significant initial investment
• Integrating with existing processes can be complex
• Requires a lot of time, making it disruptive to business operations

How to Choose the Right Approach to Modernize Your Legacy Systems? Which One is Best for You?

Before considering the best strategy for your enterprise, it is important to evaluate what your business actually needs. So, before you jump into any strategy, there are a few things you must ponder.

All the strategies listed above that involve modifications or creating new legacy software require large-scale retraining of administrators and end users. This causes operational challenges for organizations. These modernization strategies also consume a lot of time in employee training while employees are typically busy with daily tasks. The in turn, can drain resources and productivity.

Moreover, a modern application might come packed with features, but do you need them all? Rearchitecting, recreating, and buying a new application seems tempting but they are time-consuming, expensive, risky, and hamper your business operations. Also, moving data from the old system to the new one requires a lot of time.

Again, these systems have been some of the most reliable, secure, and indestructible in any data center and provide the highest possible performance and uptime, but they still run on expensive, proprietary hardware platforms. Changing the legacy application is not always necessary – but changing the hardware is.

Lift and Shift emerges as a standout for businesses looking to move quickly with minimal risk. It is one of the fastest legacy system modernization approaches without deep technical overall. In fact, your end user will not even notice that the underlying hardware platform has been replaced.

The Quick and Cost-Effective Alternative

For organizations seeking a balance between modernization and minimal disruption, solutions like Charon emulator offer an attractive alternative. It works on principles of lift and shift, emulating the existing hardware environment and creating a similar environment. The existing applications run as they did on the previous hardware – more efficiently and reliably.

There is no need to rewrite or modify software. With Charon, enterprises can emulate their SPARC, PA-RISC, VAX, PDP, and AlphaServers and extend the life of their legacy applications. The original code and functionality stay the same, running on more reliable hardware. This saves costs and time usually spent coding and testing new environments.

Conclusion

Legacy system modernization can transform operations and boost efficiency. Upgraded systems perform better, work well with new tech, and help businesses adapt quickly to market changes.

One of the notable legacy system modernization approaches is lift and shift executed by Charon emulator. With Charon, the organization can enjoy the best of both worlds. It lets old apps run on new hardware without major code changes. This cuts downtime and lowers risks compared to full system replacements. It eases the shift to advanced setups.

Are you considering modernization? Our team can guide you through the process. They’ll assess your current setup and suggest practical solutions. Every business has unique needs. Our approach reflects that.

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Frequently Asked Questions (FAQs)

1. How to approach legacy modernization?

There exist several legacy system modernization approaches. Options range from lift and shift, rehosting and replatforming to refactoring or full system replacement. The choice depends on the organization’s goals and resources. Some methods are less disruptive than others. Expert input can be valuable in this process because specialists can help create a custom modernization plan. They can assess which approach best fits the organization’s needs and capabilities. This tailored strategy can lead to more effective results. The modernization journey varies for each organization. It may be quick for some, lengthy for others. Careful planning is crucial for success.

2. What are the 7 R’s of modernization?

The 7 R’s of modernization are strategic options that organizations can consider when modernizing their legacy systems:

1. Retain: Keep the existing system as is, often temporarily.
2. Retire: Decommission the system if it no longer meets business needs.
3. Rehost: Move the application to a new environment without significant changes (lift and shift).
4. Replatform: Make minor adjustments to optimize the application for a new platform.
5. Refactor: Restructure the existing code to improve performance and maintainability.
6. Rearchitect: Redesign the application architecture to better align with modern practices.
7. Replace: Build a new system from scratch to meet current requirements.

3. What is the example of legacy Modernization?

An example of legacy system modernization is how The Taiwan Power Company (TaiPower) was struggling with their DEC Alpha computers. With Charon-AXP by Stromasys, they modernized their systems by replicating the functionalities of their legacy applications without relying on the failing hardware.