What are legacy systems and how to archive them?
Managing Director, AvenDATA
Typical characteristics
- Outdated programming languages (e.g. COBOL, RPG)
- Runtime environments like Windows XP or Unix variants
- Incompatibility with modern software or cloud technologies
- No longer supported by the manufacturer
Examples of legacy systems
- DOS-based warehouse management systems
- COBOL applications in banks or insurance companies
- Older versions of SAP, Navision or Oracle
- CRM systems from the 1990s without API interfaces
Why do companies still use legacy systems?
Despite being technically outdated, legacy systems are still used in many businesses. This is often due to a mix of operational stability, long standing dependencies and the high effort required for migration. Companies are often reluctant to take on the risks and costs associated with switching to modern systems.
- Stability and experience : The system has been running reliably for decades and is deeply embedded in business processes.
- Cost savings : These systems are fully depreciated and do not incur licensing fees.
- Complexity of replacement : Poor documentation and lack of expertise make switching difficult.
- Risk minimization : A new system requires training, migration and implementation effort, which brings operational risks.
- Lack of internal resources : Companies often lack the internal staff needed to manage such a migration project alongside daily operations.
What problems do legacy systems cause in the long-term?
- Technological incompatibility
- Security risks
- Scaling limitations
- Shortage of skilled personnel
- High operating costs
- Regulatory requirements
- Missing compliance features
Strategies for archiving legacy systems
1. System analysis and goal setting
2. Risk and cost assessment
3. Archiving instead of continued operation
4. Solution providers like AvenDATA
5. Interfaces & Integration
6. Final Decommissioning
Why Archive Legacy Systems?
- Reduce operating costs of outdated hardware
- Meet compliance requirements
- Ensure long-term access to data
- Enable integration with consolidation or M&A projects (e.g., carve-outs)
- Free up internal resources by eliminating the need to maintain legacy applications
Conclusion
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