September Edition - 2024


From the Expert's Desk

In the era where 80% of CEOs are increasing their investments in digital technologies to tackle economic uncertainty, inflation, supply chain constraints, and talent shortages, many companies are still facing the Legacy dilemma - should they continue to use their old systems or migrate to modern, cloud-based infrastructures?

In this edition of our monthly newsletter Forsys Frame, we explore why companies continue to use their old systems and how they can innovate for the future.

Nixon James

Managing Director

The Legacy Dilemma

Legacy systems, such as mainframes, remain integral to modern IT. However, reliance on these systems presents challenges, including limited agility, scalability, and increasing maintenance costs. Security remains a top concern - 88% of businesses are struggling to keep up with changes in cybersecurity compliance requirements.

Why Do Businesses Stick to Old Systems?

There are several factors that contribute to the persistence of legacy systems:

Fear of the Unknown
Changes to workflows and processes can be scary.

High Costs
Migrating to new systems can be expensive, especially for smaller businesses.
Data Compatibility Issues
Integrating legacy data with new systems can be challenging.

Lack of Skilled Talent
Finding professionals to manage and maintain new technologies is often

Additionally, CIOs and tech leaders, responsible for executing digital strategies, face hurdles. Many digital projects fall short of leadership expectations, with:

59% taking too long to finish
52% are slow to show value

Source

Modernization as a Solution

While replacing legacy systems entirely can be daunting, many companies are opting for modernization approaches. Strategies like replatforming, revitalizing, and gradual retirement help businesses update their systems without a full overhaul, providing the flexibility needed to remain competitive.

According to an insight, modernizing legacy networks is critical for businesses to remain competitive in today’s digital landscape. Upgrading to software-defined networks, integrating AI, automation, and adopting 5G innovations allow companies to reduce costs, improve operational efficiency, and enhance security through zero-trust models. 

An example of this is a food waste disposers manufacturer who migrated to Oracle Cloud Infrastructure and saw 30-35% reduction in response time and 50-60% improvement in provisioning time. 

The Case for Cloud Migration

Cloud platforms offer businesses the flexibility and scalability they need to stay competitive. With 57% of CEOs embedding new technologies for growth, 35% of technology leaders focusing on data, AI, and machine learning, and 43% prioritizing cybersecurity, the move to the cloud is becoming essential for performance and growth. While mainframes and legacy systems have their benefits, especially in handling high-volume transactions, cloud technologies can complement or even replace legacy systems over time, improving operational efficiency.

Next Steps

For businesses to achieve the best of both worlds—leveraging their legacy infrastructure while capitalizing on the cloud—they need a phased migration strategy. By gradually integrating cloud solutions, organizations can maintain business continuity while boosting agility and unlocking the full potential of digital transformation.

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