Core System Modernization Motivated by Cost Control

by | Mar 5, 2020

In our 2020 Modernization Survey, we received responses from legacy system users all over the globe. Respondents had varying levels of seniority, and job functions and came from a wide variety of industries in both the public and private sectors. However, many of them shared one thing in common and that’s the motivation behind their modernization plans.

According to our survey, when asked what business goals legacy system users are trying to accomplish through their integration initiatives, 53.8% of respondents said cost reduction. While this may not be surprising, it’s worth noting that cost reduction is the most commonly chosen integration initiative in our survey along with digital modernization and innovation (53.8%).

It’s no secret that legacy systems are expensive. They can cost from $250,000 to closer to $5 million per year, depending on CPU capacity, the amount of data passing through, and other various aspects.

When deciding to migrate off these core systems, companies often underestimate the cost and time it will take to migrate, as well as the increase in staff needed to cover any over-run. Additionally, moving off legacy systems to distributed servers often increases the overall total cost of ownership, sometimes by as much as 2.2 times.

Given that the cost to migrate is often higher than expected, core system migrations can take years to achieve. Those reliant on legacy systems are looking for an option to help keep their costs in check with the lowest risk possible.

Meanwhile, integration solutions harness the power, security, stability, and reliability of core systems and bring new capabilities to their existing technology. This is often done by creating SOAP and REST APIs that inexpensively integrate legacy systems into the latest applications. APIs can aid in mobile application development, implementing a service-oriented architecture, and more. Essentially, core system integration is a simple and cost-effective way to take your legacy investment into the future.

Integration can make legacy applications easier to use. It eliminates redundancies and manual processes, which can cut costs as additional full-time workers do not need to be hired. Integrating legacy systems with the hybrid cloud will also reduce MIPS, which will lessen the total cost of ownership while still maintaining the connectivity of applications.

When talking about legacy systems, cost reduction can be hard to achieve. Our product, the Adaptive Integration Fabric, creates APIs five times faster and at one-fifth the cost of other solutions, all without the use of coding!

Learn more about Adaptive Integration Fabric and see how we can elevate your legacy systems to the leading edge.