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Hi, my name is Mike Mykhailov, Software Solution Consultant at NIX. I’m 32 years old, and I remember a time when everyone was walking around with CD players until the iPod burst into the lives of music lovers. By the way, Apple only stopped making iPods in 2022! When was the last time you saw someone with an iPod on the street? And do you remember clamshell phones? To be honest, I loved ending a phone conversation by snapping it shut—what a time! Older generations can tell even more amazing stories about the first floppy disks and the advent of scanning in photocopiers. The younger ones probably didn’t understand much of what I just said!

Legacy applications, while once vital, can now be significant roadblocks to business growth and efficiency. These outdated systems often lead to escalating maintenance costs, as they require specialized expertise that’s increasingly hard to find. Performance issues, such as slow processing times and frequent downtimes, can frustrate users and disrupt operations. Additionally, legacy apps struggle to integrate with modern technologies, creating data silos and limiting the ability to innovate. As the workforce increasingly prefers modern, user-friendly tools, reliance on legacy systems can lead to decreased employee satisfaction and productivity. Additionally, the user experience in these older apps often falls short, frustrating customers and impacting customer retention. With data analytics becoming crucial for decision-making, legacy systems often fail to provide the necessary insights, further impeding business success. Modernizing applications is not just about keeping up with technology—it’s about overcoming these pain points to ensure your business remains competitive, secure, and efficient.

However, many businesses cling to the good old software, partly because of the why-ditch-what-works-well attitude and partly because they realize what a bother legacy software modernization might be. The greater the complexity of the system and the higher the number of businesses it covers, the harder it is to modernize legacy applications and transfer to new technologies.

Yet, whatever the excuse for the reluctance to switch to state-of-the-art technologies and products, this transition is imminent. Delaying it will only make the changeover more painful. Having 30+ years of experience in custom mobile app development, we at NIX can make your legacy app modernization seamless and beneficial for growth.

What is a Legacy Application?

Before starting to modernize legacy systems it’s necessary to get down to the basics and deal with the pivotal question: “What is a legacy application?”

An archetypal definition would qualify all old solutions as legacy. But this diagnosis is at fault on two points. First of all, the very understanding of “old” is vague since some apps stay relevant and efficiently perform tasks for years while still being considered alive and kicking. Second, solutions may become obsolete several months after their release in case breakthrough alternatives have appeared to render them old-school.

Evidently, there are other factors to mark a piece of software as a legacy application.

  • Outdated Architecture

Legacy apps are frequently built on outdated, monolithic architectures that struggle to scale or integrate with modern technologies. This rigidity can lead to performance bottlenecks, increased maintenance costs, and difficulties in implementing new features or integrations. Over time, the outdated architecture becomes a significant roadblock, hindering the app’s ability to evolve and meet the demands of today’s business environment.

  • Outdated Technology Stack

A legacy app often relies on outdated programming languages, frameworks, or platforms that are no longer supported or widely used. It’s written in a dead language. That’s not Latin or Aramaic, of course. But programming languages can become out of use as well (like Cobol, PhoneGap, Cordova) so their support becomes non-existent. 

  • Outdated Development Approaches and Frameworks

Legacy apps often rely on obsolete development methodologies and frameworks that are no longer in alignment with current best practices. This can lead to inefficient code, slow development cycles, and difficulty in adopting agile processes, making it harder to adapt to market changes and user expectations.

  • Lack of Scalability

Legacy apps typically struggle to scale effectively to meet growing business demands. As user bases expand and data volumes increase, these applications may exhibit performance issues, including slower response times and increased downtime, which can hinder business growth.

  • High Maintenance Costs

If an application requires frequent patching, bug fixes, and costly workarounds to keep it running, it’s likely a legacy app. The high cost of maintenance, combined with the difficulty of implementing new features, can drain resources and impede innovation.

  • Incompatibility with Modern Systems

Legacy applications often have trouble integrating with new software, hardware, and cloud services. This incompatibility can create data silos, limit workflow automation, and prevent businesses from leveraging the latest technology advancements.

  • Security Vulnerabilities

Legacy apps are more prone to security risks due to outdated security protocols and a lack of regular updates. This increases the likelihood of breaches, putting sensitive business and customer data at risk, and often requires extensive and expensive measures to secure.

What Is Legacy Application Modernization?

Legacy software modernization is the transformation of outdated mainframe systems into more agile and scalable infrastructures. This process involves migrating the legacy applications and data from the mainframe to a more modern platform. Modernization of legacy systems is a step-by-step process that involves updating IT systems (or certain components) according to up-to-date or future business requirements and goals. The implementation of this process lays a solid foundation for the introduction of new advanced technologies and tools that have not previously been adopted in a particular solution.

Here’s an example of business transformation with help of legacy app modernization: Foursquare underwent a significant transformation from its origins as a location-based check-in app into a powerful data-driven business platform. Initially launched in 2009, the app allowed users to check in at various locations, but as the novelty of check-ins waned, Foursquare pivoted towards leveraging the vast amounts of location data it had accumulated. By 2014, the company split its services into two apps: Swarm, which focused on social check-ins, and a revamped Foursquare app that provided personalized location recommendations. The true breakthrough came when Foursquare rebranded itself as a location intelligence company, offering businesses advanced tools for location-based analytics and consumer insights. 

Foursquare’s app modernization played a crucial role in the company’s growth and evolution from a simple check-in app to a thriving location intelligence business. By modernizing its platform, Foursquare shifted its focus from consumer-oriented social features to leveraging its massive database of location data for business applications. The modernization involved the development of sophisticated algorithms and machine learning models, enabling Foursquare to provide personalized recommendations and detailed consumer behavior insights to businesses. This allowed them to transition into a B2B model, offering valuable location-based analytics to companies across various industries. As a result, Foursquare expanded its revenue streams, secured major clients like Microsoft and Uber, and established itself as a leader in the growing field of location intelligence, significantly boosting its market presence and business growth due to legacy application modernization.

Legacy Application Modernization journey

Vulnerabilities of Legacy Systems

What are the pitfalls and bottlenecks that await you when you postpone legacy app modernization and keep using your merry old app of Oz? 

Legacy application transformation: benefits

1. Gradual Deterioration of Operation

Everybody around is traveling in supersonic jets, but you huff and puff along on your treasured steam engine. Eventually, you’ll reach your destination, but your competitors will be miles ahead of you by that time. This means the business will not be able to adapt and fulfill client needs, potentially leading to clientele outflow. Plus, your app will repeatedly reveal new issues and failures that cannot be fixed without applying legacy application modernization strategies.

2. Compromised Security

Legacy apps face compromised security primarily due to outdated codebases and deprecated software that no longer receive critical updates or patches. These vulnerabilities can create gaps in security, making the app susceptible to malware, ransomware, and other forms of cyber attacks. As the threat landscape evolves, legacy systems often lack the necessary protections like advanced encryption, firewalls, and intrusion detection systems, leaving sensitive data exposed. The consequences of these security flaws are severe, including potential data breaches, financial losses, legal penalties for non-compliance with modern security standards, and irreparable damage to the company’s reputation.

3. Close to Zero Integration Potential

The lack of modern APIs and standardized interfaces makes it challenging to connect them with newer systems, databases, or third-party services, hampering the ability to leverage current technologies or streamline workflows. For example, an antiquated CRM system might lack APIs needed to integrate with modern marketing automation tools, resulting in manual data entry and inconsistent customer information. Similarly, an old inventory management system may not interface with newer e-commerce platforms, causing discrepancies in stock levels and delayed order fulfillment. This lack of integration not only hampers operational efficiency but also restricts the ability to automate processes and share data across departments, leading to increased operational costs and reduced agility.

4. Cumbersome and Rigid Structure

Typically, legacy apps rely on monolithic architecture that presupposes single-block software with all modules and functionalities are interconnected within a single codebase. The system might have its user interface, business logic, and data access layers all integrated into one large application, making it difficult to isolate and update individual components. This rigidity means that any change, whether a minor bug fix or a new feature addition, requires extensive testing and redeployment of the entire system, leading to higher risks and extended downtime. As a result, integrating new technologies or scaling specific parts of the system becomes challenging. Additionally, the monolithic structure can significantly impact performance and increase maintenance costs, as any issue within one component can affect the entire application, reducing overall system reliability and efficiency.

5. Support and Maintenance Dearth

This problem has two dimensions: technical and human. Technically, all related problems stem from the absence of support and updates on the part of developers. Being thus abandoned by their creators, software based on these technologies falls into decay that you can only ward off for a time but not ultimately avoid.

Personnel scarcity is a consequence of the petering out of technical support. New generations of specialists see no purpose in learning how to deal with relics of the past and old-timers are even harder to come by. Your search and recruitment process turns into a weary marathon—and when you do fall upon a competent expert they will demand outrageous fees for their services.

Old solutions are often unwieldy (especially if their parents are numerous). Every little problem in them requires eons to identify and fix. The situation can be exacerbated by the absence of documentation mapping out the legacy application architecture or listing its features.

As a result, supporting legacy solutions becomes stabbing about in the dark, and specialists need more time to understand how it works and how to implement changes so as not to ruin the stability and workability of the system. 

6. Exorbitant Expenditures

All of the shortcomings mentioned above increase the maintenance cost of the app. Such costs include hiring a recruiting agency to unearth experts in old technologies, paying for their unique skills and expertise, splurging on more frequent usage of maintenance services than you would after legacy application modernization, and coughing up dozens of smaller sums that are unavoidable when you try to patch up the old system.

7. Hamstrung Business Opportunities

A legacy application that hampers business opportunities often struggles to adapt to modern market demands. For instance, a legacy CRM system with outdated features may not support integration with new marketing automation tools or customer engagement platforms, limiting the company’s ability to leverage advanced analytics and personalized outreach. This inflexibility can result in missed opportunities to optimize customer interactions and streamline operations, ultimately leading to lost revenue and decreased competitiveness and preventing the business from capitalizing on new growth avenues. As a consequence, businesses may find themselves lagging behind more agile competitors who can more readily embrace technological advancements and respond to evolving customer needs.

Futures of Legacy Application Modernization

Building New vs Modernizing Legacy Applications: Which Should You Choose?

Generally, people adopt one of two tactics when some of their belongings go out of order. Some of them try to mend whatever is broken to continue enjoying the things they are used to. Others prefer to discard it and buy a brand-new item instead. But when business software is concerned, you can’t go by personal preferences when choosing either way. Below are markers to help you choose legacy application modernization or opt to create a new app.

When to Build an App from Scratch

  1. Severe Technological Obsolescence: If the legacy app’s technology stack is so outdated that it can’t support modern requirements or integrations, starting fresh ensures compatibility with current technologies.
  2. High Maintenance Costs: When the ongoing maintenance and repair costs of the legacy system exceed the investment in developing a new app, a fresh build can be more cost-effective.
  3. Major Functional Overhaul Needed: If the app requires a complete redesign or new functionalities that are fundamentally incompatible with the old system, building a new app can avoid the complexities of retrofitting these changes.
  4. Scalability Limitations: If the legacy app’s architecture cannot scale to meet growing user demands or business growth, a new app designed with modern scalability in mind may be necessary.
  5. User Experience Overhaul: When the legacy app’s user interface and user experience are significantly outdated and not aligned with current user expectations, starting from scratch allows for a complete redesign that can enhance usability and engagement.

When to Modernize a Legacy App

  1. Incremental Improvement Feasible: If the app can be gradually updated with modern features without overhauling the entire system, modernization can be a cost-effective way to enhance functionality.
  2. Strong Core Functionality: When the existing app’s core functionality is solid and meets business needs, but it requires updates to technology or user interface, modernization can retain valuable features while improving performance.
  3. Historical Data and Business Logic: If the app contains critical historical data or complex business logic that is deeply integrated into the system, modernization helps preserve this valuable information without starting from scratch.
  4. Cost Constraints: When the budget for a complete rebuild is prohibitive, modernizing the existing app may offer a more affordable alternative while still achieving necessary updates.
  5. Operational Continuity: If business operations rely heavily on the existing app and any downtime or transition issues could disrupt services, modernizing ensures continuity while upgrading.
  6. Regulatory Compliance: When the legacy app needs to meet new compliance standards or security regulations, modernization can update the system to meet these requirements without a full rebuild.
  7. Limited Resource Availability: If resources and time for a full app development project are limited, modernizing the legacy app can be a more practical approach to address immediate needs while planning for future upgrades.

Having created dozens of apps for different industries—from automotive to eСommerce—we at NIX know that the last three drivers are by far the most frequent, persuading a lion’s share of companies to embrace legacy application modernization.

Thomson Reuters JPharm

What Are the Benefits of Legacy System Modernization?

To shed some light on the question asked above, let’s find out the key advantages of legacy system modernization.

Benefits of Legacy System Modernization

Cost Reduction

There is probably no doubt that using outdated systems is expensive. If you calculate the costs of maintaining local data centers and add to this the technical debt associated with maintaining legacy systems, as well as the costs associated with possible problems associated with the instability of such systems and data leakage, it becomes clear that these expenses can be completely avoided through modernization.

At the same time, there is another, more radical solution we mentioned above: to develop applications and services from scratch in order to completely replace outdated systems with them. This is also a kind of modernization, but often quite expensive. Of course, if your IT infrastructure has undergone significant changes and existing software components do not fully meet your current workflows, this makes sense. However, companies often manage to achieve this with much lower modernization costs by simply updating individual components and adapting them to new standards and requirements.

Increased Flexibility

Outdated systems do not allow companies to quickly adapt to new market trends and, as a result, they risk losing their competitive advantage. Moreover, such adaptation often entails enormous troubleshooting work. 

In turn, modernization is an excellent step towards the desired flexibility since, for example, migrating applications and services to the cloud and switching to a microservice architecture will allow your business to launch new services in a matter of weeks. Thus, when you modernize legacy applications, you get the opportunity to quickly take a leadership position in your business niche.

Better Performance from Employees

By moving your work processes to the cloud, you’ll give your employees better collaboration opportunities wherever they are. Moreover, you can significantly reduce the number of incidents with your applications and services by eliminating the technical limitations of the previous codebase and making it easier for your administrators to diagnose problems. Finally, you can free your company from the limitations of legacy systems and deploy new features quickly and easily, replacing manual processes that are likely to take a lot of time.

Improved Customer Experience

Being tied to an outdated system also imposes some risks associated with reduction of the customer service quality or leaving it at the same level, which may not be enough in high-supply business niches. 

And vice versa—modernization may include interface updates, adding new functionality useful for customers, as well as automating tasks that were previously performed manually. This approach will allow you to keep up with the times and create a user-centric experience.

New Profit Opportunities

Finally, when you modernize legacy applications, you can open up new opportunities for your business to increase profit. In particular, you’ll be able to create offers that are of greater value to customers than ever before, launching new services that were previously unavailable due to the limitations of an outdated and insufficiently flexible system. Thus, after the modernization of legacy applications, your company’s income can increase, especially when it comes to the introduction of innovative and advanced technologies.

What Are the Risks of Legacy System Modernization?

While there are numerous benefits that can come from modernizing your existing system, you may also encounter certain challenges during the upgrade process. Let’s look at the most typical of them so that you can prepare for them in advance.

Risks of Legacy System Modernization

Team Retraining

Updating system components can be a real challenge for your employees. They may experience some difficulty in mastering the new system, and, in this regard, your expectations associated with increasing productivity and reducing the risk of error may be in vain. To prevent this from happening, you’ll need to think about how you can implement a smooth transition from outdated solutions to updated ones (through training employees, providing detailed documentation, consulting specialists who performed the upgrade, etc.).

Seamless Integration with Used Software Solutions

You may also find it difficult to sync your updated components with those services and applications that you decided to leave untouched. However, this task is often solved by hiring seasoned specialists who can ensure seamless integration.

Loss of Valuable Business Data

Although the data that legacy applications operate on may be poor quality, transferring them may result in the loss of valuable information that may be critical to your business. To prevent this from happening, you will need to create a backup copy of the old database so that if this data is accidentally deleted, you can restore it later.

High Expenses

Embarking on legacy app modernization poses the inherent risk of incurring high expenses for the transformation process. The costs associated with upgrading outdated systems, migrating data, and implementing modern technologies can escalate, potentially straining the budget. This financial burden may be exacerbated if the modernization process encounters unforeseen challenges, leading to additional costs. Therefore, organizations must carefully assess and plan for potential financial implications when undertaking legacy app modernization initiatives.

Incorrect Choice of Strategy

One significant risk in legacy app modernization is the potential for the incorrect choice of strategy. Selecting an inappropriate approach or technology stack may lead to suboptimal outcomes, such as compatibility issues, performance bottlenecks, and functionality gaps. An ill-informed strategy can result in increased project complexity and delays, undermining the intended benefits of modernization. To mitigate this risk, thorough analysis, strategic planning, and expert consultation are essential to ensure the adoption of a well-suited modernization strategy aligned with the organization’s goals. Overall, your development team will need to conduct a global survey of your workflows and IT infrastructure as a whole to create the optimal scenario for modernization.

Legacy Modernization Options

Ways to Modernize Legacy Application

There are three basic legacy system modernization approaches for you to choose from

1. Cloud Hydration

This method means redeploying the app with cloud computing solutions and minimal changes to its structure. Usually, such transformations boil down to modifying the way of interaction between the program and the database so that upscaling and automation opportunities provided by the cloud are made available. This approach is a cost-effective mechanism for getting access to cloud-native services and functionalities.

2. Going Serverless

With this approach, you can stay on-premises or move to the cloud (the latter is more typical today) but the app works without in-house server software and hardware. By choosing this model of legacy application modernization, organizations can focus on their essential business processes instead of dispersing their attention to infrastructure management routine (capacity and cluster provisioning, patching, operating system maintenance, etc.). Another perk of serverless architecture is the exclusive upscaling flexibility it provides.

3. Containerizing It

This one presupposes packing all software components into one object to be easily moved wherever you like. The most popular variety of containers is the microservices deployment that enables consistent operations and enhanced app development while drastically cutting down on overhead.

When you’ve selected a legacy application modernization strategy, you should carefully map out the modification route.

An App Modernization Algorithm to Follow

To turn application modernization into a success story, the following steps must be taken.

App Modernization Algorithm to Follow

Step 1. Define the Goals

You should have a clear vision of what you would like to achieve by modernizing legacy applications in terms of technical characteristics, expected performance indicators, and business objectives.

Step 2. Take Stock of What You Have

Your legacy app should be thoroughly analyzed to assess its business fit and value as well as the current technical landscape concerning the three major elements: data, business logic, and UI. By doing this, you’ll know which components of it need upgrading and which are doing fine the way they are.

Step 3. Select Modernization Depth

This choice should be made separately for each element and feature. Each next level is more complicated and effort-consuming—and consequently more costly.

  • Encapsulation: Data and functions are boxed together to provide access to them as services through an API.
  • Rehosting: App elements are moved to another infrastructure with no changes introduced to any of them.
  • Replatforming: Leaving its existing code structure, functions, and features intact, the app is migrated to a new platform, which involves only slight code tweaking.
  • Refactoring: Non-functional attributes are augmented via eliminating technical debt by dint of optimizing the code.
  • Rearchitecting: The code is altered in order to relocate it to a new application.
  • Rebuilding: This is totally rewriting the app’s components while retaining its specifications and scope.
  • Replacing: Here, you get rid of components and replace them with new ones.

Step 4. Fathom Your Budget

Although legacy application modernization isn’t such a big-ticket endeavor as building an app from scratch (and this is the main reason why it is preferred), it is still not a bargain-price issue. So before embarking on it, you should make sure that your business is able to make this investment in the current moment.

Step 5. Determine the Tech Stack

The proper choice of tools, languages, libraries and other software to be instrumental in app modernization is crucial for the ultimate success of the procedure.

Step 6. Outline the Modernization Plan

The entire procedure should be mapped out with a documented list of components to be upgraded, the sequence of modernization stages, and the timeframe for each of them. 

Step 7. Appoint the Team

You should contact a seasoned software development partner who will do all the work in case your company doesn’t have in-house experts.

Step 8. Implement the Modernization

When everything and everybody is ready, carry out the procedure closely following the charted scenario.

Step 9. Test the Modernized App

Make sure the upgraded product functions in accordance with your expectations and requirements.

As you see, legacy application modernization is a no-nonsense endeavor that requires taking into account a lot of factors and meticulous fulfillment. When faced with such an ordeal, a DIY approach is not an option for outcome-driven entrepreneurs. That’s why it’s wise to engage the services of a seasoned IT company that has sufficient expertise to deliver a top-notch result. NIX has a lot of experience in such projects guaranteeing awesome UX, high performance, and seamless operation of the end product.

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Conclusion

Sticking to legacy apps puts a grievous halter on the efficiency and growth prospects of your company. By reaching legacy application modernization, you’ll be able to keep abreast of the latest technological advancements and provide your business with new development opportunities, eventually cutting costs, optimizing processes, and increasing income. Reach out to NIX to find out your options on enhancing your existing application or building a new one from scratch.

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