How Does Legacy System Modernization Reduce Costs?

70% of corporate software systems used today are considered legacy.

Many of today’s top enterprises still use legacy software, and for most of these organizations, these systems are considered critical to their operations. In fact, 70% of corporate software systems used today are considered legacy.

As these systems age however, they accrue more technical—and literal—debt.

For many organizations, a large-scale legacy system replacement is not only costly, it’s simply not feasible. Too much of their business relies on the functions of these systems to risk a full replacement project. What enterprises are starting to realize is that they can actually save money by modernizing their legacy systems.

Why are legacy systems so costly?


Average on-premise server and hardware costs continue to increase year over year.

Image courtesy of SherWeb


It’s difficult to attract and retain new employees who are familiar with legacy systems, so you have to make a deep investment in IT and development staff.

Data Loss

Legacy systems hold years of data. Data loss can cost your company millions.


As the enterprise continues to grow, more and more costly modifications are needed to move the business forward.


Don’t forget the compounding costs of licensing, development partners, and platforms.

How Incremental Legacy System Modernization Saves Money

When you work incrementally on a legacy modernization project, you’ll reduce development costs and prioritize work based on your organization’s needs. Legacy code is gradually transformed into a modern system that delivers new functionality, allowing your business to grow without disruption to operations and revenue.

Incremental modernization protects your organization’s investment by using the complex business logic that you’ve built into your legacy systems over the years. You’re not simply rebuilding your system from the ground up; you’re preserving your investment and creating new, efficient processes that save time and money.

Not only does a legacy system modernization take place over time so that there is no disruption to your business, it also reduces costs and frees up capital that could be better spent elsewhere within your company.

Start determining the ways that a modernization can save your organization money in the long run. The sooner you know the ways you’ll save, the sooner you can start seeing the benefits in action.

Meet our team to see how we can transform the systems that matter most to your business.