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According to UK government data, nearly 50% of the public sector’s tech budget is spent maintaining outdated systems and SMEs like you are facing a similar challenge.
While investing in new technology can seem expensive and daunting at first, sticking with old or legacy systems often costs far more in lost productivity, mounting maintenance costs, and missed opportunities.
In this blog, we’ll explore:
A legacy system (also known as outdated, old, out-of-date technology or enf of life) refers to software or hardware that is still in use but no longer actively supported, scalable, or compatible with newer technologies.
Operating systems nearing end-of-life (like Windows 10, which ended support on the 14th of October 2025)
Outdated business applications such as Sage 100 or old versions of CAD design software
On-premises servers that can’t integrate with cloud platforms
While they may have been cutting-edge when implemented, today these systems can hold your business back in more ways than one.
Use our free guide to help determine what Windows operating system you are currently using & if your device is compatible with the newest version.
Many SMEs delay upgrading because:
They fear disruption to business operations
They’ve already invested heavily in the old systems.
They underestimate the long-term cost of maintaining outdated technology
They’re unsure where to start with modernisation
But as we’ll see below, the longer your outdated systems remain in place, the greater the financial and operational impact on your business. Keep reading to find out.
Legacy IT systems often can’t integrate with modern tools or cloud services.
This limits data sharing, automation, and analytics which are key drivers of modern business efficiency.
Modern systems provide seamless API connectivity, improved data accuracy, and better decision-making capabilities.
According to Mordor Intelligence, the global legacy modernisation services market is projected to grow to USD 56.9 billion by 2030, reflecting the urgency businesses feel to solve these compatibility issues.
Most legacy systems eventually reach end-of-life, meaning no further updates, patches, or vendor support. This leaves your business vulnerable to technical failures and scalability limitations.
As your company grows, your systems must evolve with it. Outdated technology creates bottlenecks that limit your ability to adapt quickly to market changes.
Old technology is often a cybersecurity liability. Unsupported operating systems and unpatched software are prime targets for attacks.
A UK government report notes that many legacy systems fail to meet minimum cybersecurity standards a ticking time bomb for data breaches, ransomware, and compliance failures.
Legacy systems crash more often, lack redundancy, and can take hours (or even days) to restore.
The average cost of IT downtime can exceed £4,300 per hour for SMEs (Datto).
Employees spend nearly 17 hours per week maintaining legacy systems, according to Helix International.
Every hour spent fixing outdated systems is an hour not spent serving customers or generating revenue.
Outdated technology frustrates employees, slows workflows, and erodes morale. Research by Microsoft found that employees are up to 40% more productive when equipped with modern tools that work seamlessly together.
Investing in modernisation not only boosts efficiency but also improves employee retention.
The ServiceNow report shows that organisations spend an average of GBP 30,000 per year per legacy system on maintenance alone.
Worse still, up to 60–80% of IT budgets are spent simply keeping outdated systems running, leaving very little room for innovation or strategic projects
While direct costs like downtime and repairs are visible, the indirect costs can be even more damaging:
Repeated short-term fixes increase system fragility over time.
Outdated systems make it harder to adopt new business models or launch digital services.
Fewer professionals are trained to maintain obsolete technologies, driving up hiring costs.
Sticking with outdated platforms can trap your business in expensive contracts or niche support arrangements.
Use our free guide to help determine what Windows operating system you are currently using & if your device is compatible with the newest version.
Data migration is one of the most important and feared part of your IT modernisation.
Done poorly data migration can lead to data loss or corruption.
Profile and cleanse legacy data before migration.
Map schemas carefully — ensure old fields align with new data structures.
Run pilot migrations to test before full rollout.
Use rollback and parallel run strategies to minimise disruption.
Validate and reconcile data after migration for accuracy.
Modernising legacy systems doesn’t always mean a full replacement. The right approach depends on your business goals, budget, and risk tolerance.
| Strategy | Description | Best For |
|---|---|---|
Replatforming |
Moving the system to newer infrastructure (e.g. cloud) with minimal code changes |
Quick wins, lower risk |
Refactoring / Re-architecting |
Redesigning parts of the application for better scalability and maintainability |
When performance issues or integration limits exist |
Encapsulation / API Wrapping |
When a full rebuild isn’t viable |
When a full rebuild isn’t viable |
Replacement / Full Rebuild |
Building a completely new system from scratch |
When legacy code is unsalvageable or too costly to maintain |
Hybrid Modernisation |
Combining old and new systems during phased migration |
For SMEs seeking gradual transition |
Here are key warning signs your legacy system has reached the end of the road:
It’s no longer supported by the vendor.
Maintenance or downtime costs exceed modernisation costs.
Integration with new systems is impossible or unreliable.
It poses significant security or compliance risks.
It limits your ability to scale or innovate.
If two or more of these apply, it’s likely time to plan a modernisation roadmap.
Modernisation is not just an expense, it’s an investment.
According to BayOne, businesses that modernise can achieve:
15–35% annual infrastructure cost savings
30–50% lower application maintenance expenses
3x–5x ROI within 3–5 years
Meanwhile, doing nothing is costly. Legacy maintenance costs increase 10–15% annually
Modernising IT systems can be complex, but risk can be minimised when you implement good planning.
Run old and new systems in parallel.
Align IT and business teams early.
Conduct user acceptance testing before rollout.
Maintain rollback capability during cutover.
Communicate the “why” behind modernisation.
Responsible Disposal of Old Technology
When upgrading, remember that old IT hardware must be disposed of responsibly under UK WEEE regulations.
Ensure:
No matter your industry, a reliable and efficient IT infrastructure directly impacts profitability, productivity, and customer experience.
If your systems are showing signs of age, now is the time to modernise before they hold your business back.
Book a free consultation with our IT specialists to discuss your current setup, identify risks, and plan a roadmap for secure and scalable growth.
A legacy system is any IT system hardware or software that remains in use but no longer receives updates, patches, or support. Examples include old operating systems, mainframes, or on-premises databases that can’t integrate with cloud systems.
Patching can buy short-term stability but increases long-term technical debt. Over time, maintenance becomes more complex and costly, and new security risks emerge.
On average, businesses spend £30,000+ per year per system on maintenance (ServiceNow), with up to 80% of IT budgets devoted to keeping legacy systems operational
Cyber vulnerabilities, data loss, downtime, compliance risks, reduced agility, and high total cost of ownership.
Replacement, replatforming, refactoring, API encapsulation, and phased hybrid migration.
Typical ROI is achieved within 18–30 months for partial modernisation projects and 3–5 years for full transformations. Dependant on company size & complexity, time frames can differ.
Follow best practices: data profiling, schema mapping, pilot migrations, validation, and parallel operation.
Most important, contact a trusted IT provider for support.
Build a business case around measurable ROI, reduced downtime, improved security, and long-term cost avoidance.
Anne-Marie Blazdell is a Marketing & Communications Manager with expertise in digital marketing, content creation, and IT solutions. With a strong foundation in graphic design, she trained at Farnborough College of Technology and Southampton Solent University before advancing into marketing and business IT support.
Since joining Syn-Star in 2022, Anne-Marie has specialised in crafting SEO-optimised website content, managing social media, and helping businesses navigate the complexities of IT. Her work bridges the gap between technology and business, making IT more accessible and effective.
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