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Business Risks of using Legacy IT Infrastructure
Owning a retro car can be considered as a luxury while running your business on an outdated IT system might not be
considered the same! Businesses that don't modernize their infrastructure don't stay relevant for long. If you fail to
keep pace with the technology advancements and utilize them to streamline and catalyze your internal processes, you
will be elbowed out of the market by the competitors. In brief, you could be at the helm of your business, but relying
on an aging IT infrastructure could easily sink your business ship.
The Business Risks of Legacy IT
1. Technology never gets better with Age
It is common knowledge that new IT systems can be regularly updated to guard them against emerging cyber threats. New
versions are designed to increase the security as well as add new functionalities. In contrast, the legacy systems
cease to evolve and are riskier to use as they have not been designed to stay resilient to today's sophisticated forms
of attacks. When a certain system has been around for years, the hackers and attackers get more time to poke around
and discover its various vulnerabilities
Obsolescence poses a serious business risk. You are sure to feel reluctant to fly in an aircraft that is 3 years
outside its maintenance cycle and yet you operate your business on an IT system that has reached or approaching its
end of life.
2. Increased Operational Costs and System Downtime
According to a recent report, large enterprises spend about 80 percent of their total IT budget on maintaining their
legacy systems. Although most businesses are hesitant to invest in new technology, the true cost of maintaining the
legacy systems far outweighs the costs of new system implementation. As the outdated systems incur a high maintenance
cost, so they lead to inefficient OPEX.
Legacy systems are slow, prone to crashes and require constant attention from IT departments, creating high
dependency on IT personnel who could be utilized in projects that increase operational efficiency and business
opportunities. The constant threat of downtime negatively impacts employee productivity, causes customer frustrations,
and creates a ripple effect on every aspect of the operation.
3. High Regulatory Compliance Risks
Legacy technology can have serious repercussions upon businesses that need to meet stringent regulatory compliance
standards. Industry compliance standards such as HIPAA, PCI, and SOX require your technology to be supported and safe.
Audits become more difficult when a business operates on legacy infrastructure. Additionally, there is always a
lingering chance of breach that sets the business up for expensive penalties. Consequentially, there is a loss of
reputation and customer trust that could have a far-fetching negative impact upon your business.
4. Mobility is Impaired
Mobility is the new age imperative for enterprise collaboration. However, most legacy systems are device-dependent
with a lack of mobile versions. This has a direct bearing on the efficiency, agility, and productivity of an
enterprise. Mobile-friendly systems help enterprises to move beyond the physical restraints, as a result, they
consistently outperform their on-premise, legacy versions.
5. Incompatibility with other IT Solutions
Businesses that remain tethered to legacy systems often end up limiting their growth. They fail to meet the
modern-day demands of their customers which can be easily attained with the utilization of new technologies. Legacy
systems are not compatible with newer solutions and hence limits the growth of the business. In the long run, this
leads to financial losses as the competitors reap the benefits of incorporating emerging technologies to grow their
customer base and meet the industry requirements for speed, convenience, and security.
6. Limited Talent Pool
Apart from the high maintenance costs, it is also difficult to find the right talent to manage your legacy
infrastructure. As a system grows old there are fewer and fewer IT experts available to support your legacy
infrastructure. As your existing technology experts retire or leave, the organization is faced with the challenge of
finding new talents from a limited talent pool. This situation is further aggravated when the vendor discontinues its
The technology world is moving at a fast and often dizzying pace. Modern-day businesses need to adopt helpful
innovations to change the way business is conducted. Legacy systems pose barriers in business growth and scalability
in the rapidly evolving digital business landscape. To meet the present-day demands, businesses need to equip
themselves with better resources. And this can be capacitated by a modern IT infrastructure.