As the economic turbulence of the past few years continues to send shockwaves across the global economy, business have markedly intensified their focus on cutting costs where possible. Some of these cost-minimizing measures, such as retaining legacy technology, however, may actually have the opposite effect.
Indeed, when it comes to relying on legacy tech, postponing a modernization plan due to cost becomes, ironically, rather expensive. This reliance is more common than one might expect – even among the heavy-hitters who dominate their industries. According to a report from Dell, more than 70% of software used by Fortune 5000 companies was developed 20 or more years ago. Many of these large enterprises are specifically concerned about the immediate financial and temporal costs of transitioning to a new digital architecture, and so continue to utilize their existing systems instead.
Drawbacks when sticking with legacy technology
In times of economic uncertainty, it is tempting for enterprises to think only in terms of the here and now. Given the financial squeeze, many businesses have faced since the pandemic, therefore, an increased focus on short-term costs is not surprising. Moreover, in addition to the initial costs, digital architecture migration can be challenging and