Legacy systems and applications are still powering businesses all around the world.
But saving money on decades-old software and systems may be a myth – do you know, what is the true cost to the bottom line?
Some of the costs in addition to the obvious licensing costs are listed here for your consideration:
- Maintenance costs: Every customization, change or update adds a new layer of complexity. More time may be needed to update or use the system. A change in one area might make another non-functional. A modern application is easy to troubleshoot quickly online – not so with legacy systems.
- Talent costs: New talent is relatively less expensive from a labor standpoint than those who have history and experience as may be required to keep up with making legacy applications high functioning.
- Support costs:What happens when the vendor stops supporting your software version? You must either pay to support it yourself or upgrade. And if the vendors steps away from the business altogether, your investment will not benefit your company.
- Integration costs:Ensuring that a legacy system will interact well with other more modern ones can require a lot of care and time. Limited options make things cost more.
- Compliance costs:You may not even be aware of compliance risks and issues that are not up to par.
- Lost opportunity costs:Are there any opportunities your legacy system has caused you to be unable to take full advantage of?
- Agility costs: Inevitablyturnaround time and general responsiveness are not going to be as quick with an old technology as they would be with a modern one.
It is worth thinking about where a company would be if it had invested in all the latest technology to take advantage of all the most up-to-date opportunities and situations.
To read the full article, click here.