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What is Legacy Software?

by Jamie Thomson

Published: 29.04.2025

A simple cartoon image of an old-fashioned computer monitor with a message that says Legacy Software used as the main image for the What is Legacy Software? blog.

In this post we are going to talk about a subject we are deeply passionate about: Legacy Software. Many companies utilise legacy software for some of their processes, and you might be astonished at how frequently we encounter it in crucial business situations. A 2021 study commissioned by AWS and Tata Consultancy Services found that almost 70% of companies are still using legacy systems.   

Ready to modernise your legacy systems but unsure where to start? Download our Legacy Software checklist today!

Definition and Explanation of Legacy Systems

It’s essential to recognise that legacy computer systems can vary significantly in their characteristics. A common definition of legacy software is any application that has outlived its original purpose or has become outdated in terms of technology and usability. These systems often possess specific attributes, such as reliance on outdated programming languages, which may lack the support of modern development tools, making it difficult to enhance or integrate them with contemporary technology. Additionally, legacy software is typically integrated into the foundational processes of an organisation, leading to deep-rooted dependencies that complicate the transition to more advanced systems. Organisations may find themselves facing institutional knowledge gaps, where the original architects of the software may no longer be available, leaving teams scrambling to manage and understand these critical systems.

In summary, it will have one or more of the following attributes:

  1. It is no longer receiving regular updates or scheduled maintenance from the software developers.
  2. The original developers are not involved anymore, in fact it is common that it has been through several developers since it was first installed.
  3. Software maintenance will be ad hoc, fixing critical bugs, just enough to keep it working.
  4. It will be running on out of date platforms, such as older versions of software languages and libraries and no longer supported operating systems.
  5. The hardware it runs on may no longer be upgradeable.
  6. Very few people in the company, if any, understand how it works. It has become a black box that does a job but the knowledge about how it does it has been lost. 

Why do companies still use Legacy Software?

IT WORKS

The biggest reason is that it still works for the company. Even if it is not perfect the limitations have not yet become bigger than the hassle and cost of trying to update to something more modern.

COST

The cost of replacing legacy systems can involve a large upfront investment in money and time. Although the cost of maintaining legacy software can be very high (according to this 2018 study published by Stripe, over 30% of development time is spent on legacy code), the payment profile is smaller regular amounts that fit in better with most companies cash flow.

FEAR

Change is hard, especially when it involves software that is widely used by an organisation. The “if it isn’t broken, don’t fix it” approach is easier.

The banking industry clearly illustrates this, as established banks with outdated legacy systems struggle to keep up with their newer competitors. The burden of old systems that work is stopping them offering all the new features that new banks offer. 

AVAILABILITY

It is often the case that a direct off the shelf replacement is not available. Even the leap to the most current version of the software in use might involve losing critical functionality. 

Challenges and Risks Specific to Legacy Software

An image of a software developer working on a computer that is running legacy software. The developer is looking frustrated, representing the difficulty in updating legacy software.

Challenges of Maintaining Legacy Software

When it comes to using legacy software, organisations face a myriad of challenges and risks unique to these outdated systems. One significant challenge is the increasing difficulty in finding skilled professionals who can navigate and maintain older codebases, particularly in deprecated programming languages. As time passes, the pool of knowledgeable developers shrinks, which can lead to complications in addressing critical bugs or implementing necessary updates.

Compatibility Issues & Integrations

Legacy software often lacks compatibility with newer applications and integrates poorly with modern technology solutions. This creates silos of data that can hinder overall operational efficiency. Organisations may find themselves unable to leverage the full potential of their data due to the limitations imposed by outdated systems.

Security Risks

Security is another pressing concern, as outdated software may not receive regular patches or updates, leaving organisations vulnerable to cyber threats. The lack of ongoing support for legacy systems can result in increased exposure to vulnerabilities that could be exploited by malicious actors.

Hardware Dependencies

As these systems age, it becomes crucial for organisations to comprehend not just the operational limitations but also the substantial risks that legacy software and legacy technologies pose to their long-term sustainability. Understanding these factors is essential for developing a strategic plan to modernise their technology stack and mitigate potential risks associated with legacy systems.

Long-Term Sustainability

As these systems age, it becomes crucial for organisations to comprehend not just the operational limitations but also the substantial risks that legacy software poses to their long-term sustainability. Understanding these factors is essential for developing a strategic plan for legacy system modernisation to modernise their technology stack and mitigate potential risks associated with legacy systems.

Performance

Over time, the performance of software that is not maintained typically deteriorates. Additionally, as new technologies in the software stack emerge, the disparity with modern software will increase, often enhancing performance.

Cultural Inertia

Beyond technical challenges, overcoming employee resistance and retraining for new systems often proves a significant hurdle. Companies frequently encounter substantial challenges when it comes to managing the human element of transitioning away from legacy systems. Employees may exhibit resistance to change due to comfort with familiar systems, fear of the unknown, or concerns about the potential for job displacement. This resistance can manifest as decreased productivity, negativity, or even outright refusal to adopt new technologies.

Additionally, organisations must be mindful of the potential for disruptions to workflows and business operations during the transition period. Employees may experience temporary decreases in productivity as they adjust to new systems and processes. To mitigate these disruptions, organisations should develop a clear transition plan that includes phased rollouts, ongoing support, and communication strategies to keep employees informed and engaged throughout the process.

Struggling with legacy software challenges like security risks or high maintenance costs? Contact us to discuss tailored solutions.

4 Modernisation and Migration Strategies

Do Nothing

A person at a computer with their fingers crossed hoping that the software will not crash. This represents the do nothing approach to upgrading legacy software.

Sometimes, doing nothing can be the best course of action. If everything is working smoothly now, it might be best to simply keep an eye on things and hope for the best. However, it’s always a good idea to have a backup plan in case something goes wrong in the future. Regular maintenance and monitoring can help prevent potential issues and ensure that everything continues to run smoothly. Remember, prevention is often better than cure!

Maintain

Keep it all working as best you can by bug fixing as and when they come up. Accept that maintenance costs are going to be high, that the money spent is probably wasted in the long term and that there will be a day when this is just not possible to continue with.

Start Again

Start from scratch with a modern tech stack taking the best bits from the legacy software and building new functionality that you need at the same time. Although this tends to be intensive for both cash flow and time in the short term it is a very valid route to take.

Incremental Improvements and Modernisation

The hybrid approach between maintain and start again. Keep the current legacy software working and incrementally redevelop parts of it into modern standards. Therefore, over time, the whole software gets updated. This requires a specialised development team who can deal with both the legacy code but also develop to modern standards with modern technologies.

Unsure which modernisation strategy is right for your legacy software? Let our experts help you evaluate your options. Contact us today.

Conclusion

Which should you choose? Well, we really like the incremental improvements approach and would class ourselves as experts in doing just that. It is, however, not always the right answer (for example if you no longer have access to the underlying code) and that is where we would recommend starting the development from scratch. The “do nothing” and “maintain” options are just too short term to be valid ways to approach legacy software.

In the next post we will cover “the how to start from scratch” approach. After that we put up a post on the incremental improvements approach.

Considering incremental improvements for your legacy system? As specialists in this approach, we can guide your modernization journey. Contact us to learn more.

Frequently Asked Questions

1. What is legacy software?

Legacy software refers to outdated computing systems or applications that are still in use, often built on older technologies. They may no longer meet current business needs or technological standards.

2. Why is legacy software a problem?

Legacy software can be inflexible, costly to maintain, and prone to security risks. Over time, it becomes increasingly difficult to integrate with modern tools and systems.

3. What are the benefits of incrementally redeveloping legacy software?

Incremental redevelopment allows organisations to retain critical functionality while gradually modernising their systems. This method reduces downtime, minimises disruption to business operations, and enables teams to adapt to emerging technologies at a manageable pace.

4. How do I know if incremental improvements are feasible for my legacy software?

Assess your current system architecture, code quality, and documentation. If you have access to a knowledgeable development team familiar with both the legacy code and modern standards, incremental improvements may be a viable option.

Need help navigating your legacy software issues? Whether it’s maintenance, modernisation, or starting fresh, our team is ready to assist. Contact us for a consultation.


Further Reading about Legacy Software Modernisation


Jamie Thomson Avatar

About Jamie Thomson

I'm Managing Director and co-founder at Full Metal Software. With 15 years in the software development industry under my belt, I channel my inner geek and passion for coding into leading my team and crafting innovative tech solutions for real-world challenges.

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