Wrestling with Antiquated Tech: The Deep-rooted Challenges and Lasting Consequences
Companies aim to manage technical debt, yet find themselves ensnared in a harmful 'legacy reliance' cycle, which is leading to a loss of customers.
The burden of legacy systems on enterprises has hit a boiling point, as the stakes for AI-driven projects soar higher than ever.
A survey conducted by Savanta, in collaboration with Pegasystems, sheds light on a harsh reality: over two-thirds (68%) of respondents recognize that their antiquated systems and software are hindering their ability to embrace cutting-edge technology.
Fretting over technical debt is no walk in the park, though. According to Pegasystems, a large number of enterprises find themselves ensnared in a vicious cycle - stuck supporting mission-critical legacy applications they can't dispense with. Almost half (48%) of these companies highlight this predicament as a key hurdle in their modernization journey, while 68% note their ancient software is the primary brake on operational efficiency.
Setting aside significant resources to maintain outdated systems strains budgets, and 44% of IT heads cite such maintenance as a substantial financial drain.
Pegasystems' chief technology officer Don Schuerman explains that the study underscores the formidable problems faced by businesses striving to keep pace with current trends. "The study reveals how effortlessly businesses can be held back by cumbersome, dated systems that are both laborious to manage and maintain," he said.
Schuerman further warns that if no drastic action is taken, legacy technology will perpetuate an "organizational culture of waste."
The deleterious consequences of legacy technology extend beyond squandered finances. A study by Daisy Corporate Services earlier this year reveals that these legacy systems and infrastructures are now responsible for more than a third (37%) of total power consumption at enterprises.
This raises serious concerns among IT leaders over escalating costs and the impact of legacy applications on sustainability goals.
The Long-term Ramifications of Legacy Technology
While modernizing legacy systems poses a complex web of technical challenges, the long-term business implications are equally daunting, Schuerman caution.
Failing to modernize has a detrimental impact on customer satisfaction levels. "While the financial costs to businesses are substantial, the real cost of technical debt is its damaging effects on the experiences that today's customers demand and deserve," Schuerman stated.
The study found that eight out of ten (88%) enterprises express mounting concerns about the impact of legacy technology on their competitiveness. More than half (57%) point at their reliance on antiquated systems as the likely reason for customer attrition.
These findings follow a consumer-focused study by Pegasystems earlier this year, which revealed a growing sense of exasperation among consumers over subpar service quality.
Three-quarters (77%) of respondents urged enterprises to augment their investments in improving user experiences, and over half (56%) claimed interactions with businesses had deteriorated significantly in the past decade.
Facing a balancing act between profitability and customer satisfaction, three-quarters (74%) of business respondents acknowledged prioritizing investments that enhance profitability over those that boost user experiences.
Pegasystems' Battle Plan Against Legacy Tech
The findings from Pegasystems' survey were revealed at the company's PegaWorld conference in Las Vegas this week. The conference also saw Pegasystems unveil a range of new product updates, with a specific focus on addressing legacy debt.
For instance, updates to the Pega Blueprint platform now include new-age AI tools that help businesses overhaul legacy systems and speed up application modernization. The tool works by allowing businesses to upload documents, code analysis files, and even application screenshots.
Thereafter, the Blueprint platform "digests" these sources together to suggest starting points for application modernization processes.
"This comprehensive approach cultivates an ideal launching pad for both business and IT teams embarking on their transformation projects while casting a wide net of legacy source information, enabling more informed decisions and reduced iteration cycles," the company explained.
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- The struggle with outdated technology infrastructures is a significant challenge for businesses, as revealed by a study conducted by Pegasystems, which shows that over two-thirds of respondents recognize that their legacy systems are obstructing their ability to adopt advanced digital technology, such as AI.
- The consequences of legacy technology extend beyond financial strain, as a study by Daisy Corporate Services reveals that these outdated systems are now responsible for more than a third (37%) of total power consumption at enterprises, raising concerns over escalating costs and the impact on sustainability goals.
- In an effort to combat the challenges posed by legacy technology, Pegasystems has unveiled updates to its Pega Blueprint platform, incorporating new-age AI tools that help businesses overhaul legacy systems and speed up application modernization, aiming to provide a comprehensive approach that serves as an ideal launching pad for transformation projects.
