In today’s fast-paced digital landscape, the importance of technology in achieving strategic business goals is undeniable. Yet, many organisations fail to recognise the accumulating costs of technical debt, leading to missed opportunities and wasted resources.
According to a McKinsey & Company survey, 30% of CIOs report that as much as 20% of their budget for new products is diverted to addressing issues related to technical debt. Managing technical debt, especially from legacy applications, is not just an operational necessity for large businesses – it is critical to staying competitive and agile in the modern business environment.
What is Technical Debt?
Technical debt is commonly understood as the cost of shortcuts taken during the software development process – quick fixes or compromises made to meet immediate deadlines or reduce upfront costs. While these decisions may initially seem cost-effective, they often create long-term inefficiencies and burdens, manifesting as technical debt.
In legacy business applications, however, technical debt is more than the result of development shortcuts. It also encompasses the ongoing costs of maintaining outdated systems that no longer meet the organisation’s evolving needs. When businesses continue to invest resources in maintaining legacy applications incapable of addressing current challenges, they are effectively piling on technical debt.
In an era where data security, privacy, and regulatory compliance are of paramount importance, understanding and managing technical debt related to legacy applications is crucial. Businesses that fail to tackle this issue risk compromising both operational efficiency and data integrity.
Recognising the Signs of
Legacy Application Technical Debt
Many organisations need help with legacy applications that are no longer optimal for their current business needs. Below are common signs of technical debt that can negatively impact data management and operational efficiency:
Maintaining Duplicate Systems
A common scenario is when a business adopts a modern, robust business application but continues to operate a legacy system solely to access historical data. This duplication not only increases operational complexity but also creates unnecessary expenses.
Outdated Technology
Legacy applications are often built on outdated technology, such as unsupported hardware or software. This makes them difficult to maintain and patch, leaving the organisation vulnerable to data security risks and potential breaches.
Difficulty Providing Support
Legacy systems frequently require extensive time and effort to resolve user and system issues. The complexity of these outdated platforms makes it harder for support teams to maintain efficiency and effectiveness.
High Maintenance Costs
As legacy applications age, they become increasingly expensive to maintain. Modifying and keeping these systems operational demands significant resources—both in terms of personnel and finances.
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The Growing Need for Data Management
With the rise of artificial intelligence (AI) and machine learning (ML), effective data management has become a strategic priority for organisations. Regulatory bodies, customers, and employees are more focused on how organisations handle their data than ever. Storing critical and inactive data in inefficient, legacy systems restricts an organisation’s ability to leverage its data fully and adds to the technical debt.
Tools like Archive360’s Unified Data Governance platform provide an ideal solution for addressing technical debt tied to legacy applications. By archiving critical and inactive data, businesses can retire legacy systems, significantly reducing maintenance and support costs. Moreover, organisations benefit from improved data security, better litigation preparedness, and reduced discovery costs. Freed from the constraints of outdated applications, businesses can redirect resources – financial, personnel, and data – toward innovation and value-added activities.
Real-world Impact of Managing Technical Debt
Managing technical debt is not just a cost-saving measure but a strategic imperative for larger businesses. Archive360, for example, has helped organisations retire numerous legacy applications, especially in heavily regulated industries. One leading bank saved $40 million by decommissioning its legacy systems and archiving the data with Archive360’s platform.
By addressing technical debt and retiring legacy applications, organisations can transform their data management strategies, reduce risks, and unlock new opportunities for growth.
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The Importance of Managing Technical Debt
“The Hidden Risk and Cost of Technical Debt
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