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integrate legacy systems

How to Integrate Legacy Systems: Top Challenges and Strategies

While legacy systems are the heart of any business, replacing them entirely with a new one can create major disruptions and data loss issues. The only solution that sounds feasible is integrating legacy systems with modern solutions. This blog covers every challenge you can expect and strategies you can follow to ensure smooth legacy system integration.

The backbone of enterprises, legacy systems, were not designed for today’s cloud-native, API-driven world. Continuing with them can block real-time data flow, complicate workflows, and limit innovations. 

Replacing them with legacy software modernization services is expensive, risky, and disruptive. That’s where legacy system integration comes as the best solution.

If legacy system integration is done right, it lets you connect old and new systems seamlessly without starting from scratch. But there are many roadblocks because integrating legacy systems with modern software isn’t a plug-and-play job. You can face complexities around security, compatibility, and scalability.

In this blog, you’ll know the most common challenges you can face when integrating legacy systems and proven strategies to solve those.

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Why Legacy System Integration Matters

Industries like BFSI (banking, financial services, and insurance), healthcare, retail & eCommerce, and many others still heavily rely on legacy systems for operations. But in today’s digital-first economy, these legacy systems can become roadblocks to innovation.

Here’s why you should decide to integrate legacy applications with modern ones:

  • Digital transformation in enterprises can enable legacy systems to adopt cloud, AI, and analytics-driven models. Legacy systems working in silos can’t deliver real-time insights or automation.
  • Aging systems can be too rigid to meet modern standards, like GDPR, HIPAA, SOX, etc., which can leave enterprises exposed to regulatory penalties.
  • Patching up legacy systems can drain IT budgets and increase technical debt.
  • Legacy systems cannot match up with consumers’ expectations for speed, personalization, and omnichannel access.
  • Merging multiple IT environments without integration leads to fragmented operations and data duplication.
  • Legacy systems can face scalability challenges with growing workloads, which can lead to costly scaling.

Considering these scenarios, integrating legacy applications with modern ecosystems is the only feasible option that can help you future-proof operations without the risk and cost of full replacement. Here, it can be done with modern applications or cloud integration services for specific cloud support.

Common Challenges in Legacy System Integration

When opting to integrate your legacy system with modern ones, you can expect to face challenges like dealing with outdated tech, skill shortages of those who know legacy programming languages, a lack of documentation, data inconsistencies, and more.

Let’s know these legacy system integration challenges better:

Challenge 1: Outdated Technology Stack & Architecture

Legacy systems are mainly built on outdated hardware (mainframes) and programming languages (like COBOL). In comparison to today’s API-driven systems, they still rely on proprietary protocols, which can restrict their ability to develop direct connections with cloud computing solutions and modern SaaS platforms without the use of middleware.

Challenge 2: Lack of Necessary Skills

Let’s be honest, how many developers do you think would know COBOL? A very small proportion of developers know this programming language. The ones who would know it might be on the verge of retirement. Even if you find them, they would still lack some skills to bridge the gap between legacy and modern software architecture.

Challenge 3: Lack of Documentation

The majority of legacy systems were built around the early 2000s and even before that. There may be physical documentation, which may be incomplete and difficult to find. This would create a challenge to understand system dependencies, workflows, and customizations when integrating legacy systems with modern architecture.

Challenge 4: Data Inconsistencies

Many legacy systems used to operate in silos and in scattered, incompatible systems. In that time, there was no data standardization. Moreover, in legacy systems, data entry was often done manually, which could create chances of human errors and data duplication. So, gathering data from those multiple sources and incompatible systems, finding out the difference between accurate and erroneous data, and then connecting all with modern applications and data sources could create high-stakes obstacles.

Challenge 5: Security & Compliance Risks

Legacy systems are mainly outdated, incompatible with modern security measures, and even lack support, which creates chances of available vulnerabilities and makes them fail to meet evolving regulations like HIPAA, GDPR, or PCI-DSS. Even if you choose to patch these up during integration, there are still risks of breaches and regulatory penalties.

Challenge 6: Scalability Limitations

Unlike modern applications, legacy systems cannot scale as your business grows. The reason is, legacy systems are built with monolithic software architecture and rigid technologies. Hence, they fall short of meeting the dynamic scaling requirements. Even if you integrate with new services, these systems can still be stubborn to handle increased workloads, data volumes, and architectural changes.

Learn how monolithic architecture is different from microservices architecture.

Challenge 7: High Integration Costs

Well, integrating legacy systems with modern tech wouldn’t be costlier than legacy app modernization services, but it can still be a challenge for some businesses. The reason is the legacy system integration is not done like it is done between modern systems; it involves custom connectors, middleware licenses, and long development cycles.

Moreover, unplanned issues like undocumented workflows and performance bottlenecks do add up to the cost like compounding interest. Hence, some may find the cost of legacy system integration a challenge.

Challenge 8: Vendor Lock-in

Legacy systems are built with rigid architecture and proprietary technologies, and hence, they often lack open standards, which makes them difficult to modify to integrate with third-party platforms. Due to integration bottlenecks with third-party platforms and heavy reliance on the original vendor for upgrades, patches, and even integration support, the process faces limited flexibility and even vendor lock-in in extreme situations.

Challenge 9: Business Downtime Risk

The legacy system integration process often involves complex data migration and code refactoring tasks. If you fail to handle these processes nicely, they can lead to significant system downtime and disrupted operations.

In this case, a proper cloud migration strategy can help.

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How to Integrate Legacy System: Proven Strategies for Success

A strategic legacy system integration involves knowing the system in and out, finding a way to embrace the API-first architecture, using middleware solutions like Enterprise Service Bus (ESB), and more.

Let’s read through known, proven strategies to ensure smoother integration of the legacy system with modern applications:

Conduct a System Assessment & Audit

Before you integrate a legacy system with your modern systems, it is a must to identify risks and ensure compatibility and data integrity to make important upgrades and data migration for secure integration. You can do that by evaluating critical legacy system workflows, data flows, and performance bottlenecks. This prior audit step not only saves you extra time but also unexpected costs that may arise during the process.

Define Clear KPIs

If you’re planning for legacy system integration, you must have thought of a goal, which we also know as key performance indicators (KPI) in software. It could be system uptime, data synchronization accuracy, transaction latency, compliance adherence, or something else.

Defining these KPIs helps you keep track of progress throughout the integration lifecycle and measure the success of the process.

Adopt an API-First Approach

An API-first approach adoption is crucial before integrating a legacy system. Why? Because it forces a clear abstraction and decoupling of legacy system functions, enhances reusability, improves agility and faster time-to-market, and most importantly, future-proofs the integration while ensuring scalability.

So, by adding standardized API layers, it ensures that your legacy system can do secure and real-time data sharing with cloud applications, mobile platforms, and third-party services.

When doing this, it’s better to have a complete awareness of API integration for smoother execution.

Use Enterprise Service Bus (ESB) or iPaaS

As said earlier, legacy systems contain a rigid ecosystem, which makes them nearly incompatible with direct integration with modern architecture. Hence, middleware like Enterprise Service Buses (ESBs) and Integration Platforms as a Service (iPaaS) are needed when integrating legacy systems.

These solutions not only help to avoid costly and time-consuming code refactoring and custom code but also enable point-to-point connections. It is done through centralized and standardized interfaces, data transformations, and service orchestrations.

But when to pick what? You can use ESBs for complex on-premises environmental integration and iPaaS for hybrid and cloud integration services.

Leverage Microservices for Gradual Modernization

Legacy systems built upon monolithic architecture are tightly coupled and too rigid to embrace any major change. The only way to deal with it is by dividing each function or a group of functions into small, manageable modules, leveraging microservices.

This will not only help you gradually modernize the legacy system but also enable faster deployment of new features and integrations.

This works well when doing legacy system modernization in the healthcare and finance sectors.

Data Transformation & Cleansing

You now know that legacy systems work in silos and even store data in silos. Multiple systems store data in different formats. So, this inconsistency of data can become a barrier to integrating legacy systems with modern applications.

In these cases, data engineering services can help to implement ETL (Extract, Transform, Load) pipelines to transform data into standardized formats, eliminate data duplication, and ensure data accuracy across systems.

So when the data is cleaned, transformed, and standardized, and the connection of the legacy system with the modern environment is established, data integration services can enable businesses to embrace data intelligence.

Ensure Robust Security Framework

Legacy systems are outdated systems, and they inherit vulnerabilities from a lack of patches and vendor support, incompatibility with modern security tools, and more. Due to this, they are vulnerable to data breaches, compliance issues, and operational disruptions.

A robust security framework is needed at the time of legacy system integration because it helps to implement strong encryption protocols, firewalls, intrusion detection, identity federation, and role-based access control (RBAC). It helps to protect data, ensure regulatory compliance, and enable incident responses to mitigate risks associated with outdated infrastructure.

Along with that, you can also leverage cloud security best practices to further protect legacy systems and modern applications from inheriting previous vulnerabilities.

Partner with an Experienced Integration Expert

When integrating legacy systems with a modern architecture, it requires expertise across multiple domains, including mainframes, modern APIs, middleware platforms, and cloud infrastructure.

Hence, partnering with tech integration experts is recommended to understand both old and new technologies and how they connect to ensure a compliant legacy system integration. Their knowledge, skills, and expertise ensure faster implementation, reduced risk, and alignment with long-term digital transformation strategy and goals.

Set Up Continuous Monitoring and Support

Once you finish the integration of the legacy system with your modern solution, it doesn’t mean your task is done. You have to continuously keep an eye on it and audit it to identify flows and opportunities to make it even better.

In the case of legacy system integration, it is a must to continuously monitor data flows, system performance, and security compliance in real time to identify flaws and opportunities. Along with that, a dedicated support team or managed services provider can help to resolve issues and optimize performance instantly.

Train Teams for the New Integrated Environment

A decision to integrate a legacy system with a modern system is not only a technical advancement but also an organizational shift. You should expect resistance to change because teams that have worked on legacy systems for years may struggle with new tools and workflows.

As part of your change management plan, provide your team with comprehensive training through clear documentation, role-based access guidelines, and training sessions. This support ensures proper adoption of the integration and helps prevent operational bottlenecks.

Conclusion

Integrating legacy systems with modern innovation is often better than full modernization. To save a few hundred dollars, many businesses hastily connect too many systems to legacy platforms. This can create a complex, tangled ecosystem that is difficult to manage.

Businesses reach this situation because they:

  • Prioritize upfront savings over long-term stability and scalability.
  • Ignore architectural planning
  • Ignore the technical debt associated with each quick fix that adds up to complexity
  • Underestimate compliance and security risks
  • Have no well-defined integration strategy, clear ownership, or governance

Eventually, the ecosystem becomes fragile and expensive to maintain and resists innovation.Hence, many enterprise-scale businesses prefer to hire a software development team that follows a strategic approach.

“Having been in this IT service industry for over a decade, I can say that even a full-scale integration and modernization plan can be executed smoothly if it’s built on the foundation of success.” – Pratik Patel, Technical Head

Why Trust MindInventory For Legacy System Integration

As a leading digital transformation company trusted by Fortune 500 companies and well-known brands such as KFC, Air Asia, Panasonic, and others, we have helped many of them integrate their legacy systems with modern ones or modernize their existing systems.

We understand that integrating legacy systems can bring numerous benefits, including cost savings, faster innovation, improved operational efficiency, and reduced downtime. We also understand that the legacy system integration process involves many challenges around vendor lock-in, understanding dependencies, outdated technologies and architecture, and more.

Hence, we follow a strategic plan when businesses come to us with a legacy system integration request. Our plan includes:

  • Audit legacy system architecture to identify integration opportunities and dependencies
  • Suggest whether to opt for legacy system integration or modernization
  • Create a custom integration/modernization plan supporting digital transformation goals
  • Proceed with the execution plan (whether full-scale or phased)
  • Onboard your team with the new ecosystem with training support

Need a tailored legacy system integration plan for your organization, too? Contact us now.

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FAQs About Legacy System

What is a legacy system?

A legacy system is an outdated yet functional computer system, software, or technology infrastructure that is still operational in many businesses to manage core functions but is not actively supported.

What are examples of legacy systems?

Outdated operating systems (like Windows XP), COBOL-based applications, older mainframe computers, ERP systems like SAP R/2, airline reservation systems (like Sabre), and financial core systems are top examples of legacy systems.

What are the challenges or issues with legacy systems?

Using legacy systems brings many challenges, including rising technical debt, poor security, difficulty with integration and scalability, lack of specialized skills for maintenance, and even regulatory compliance risks. Eventually, legacy systems in a business can hinder its ability to adapt, innovate, and operate efficiently.

What are the benefits of legacy system integration?

Legacy system integration can benefit you in saving costs by extending it by connecting with modern solutions, offering improved efficiency and scalability through modern software features, and enhancing data access and analytics for better decision-making.

What should be the legacy system integration goals?

Your strategic goals behind integrating legacy systems with modern ones should be to boost operational efficiency and productivity, facilitate innovation and agility, reduce technical debt, improve data accessibility, enhance security and compliance, simplify IT operations, and many others.

What are the different types of legacy system integration?

Different types of legacy system integration include point-to-point (P2P) integration, enterprise service bus (ESB), API integration, iPaaS, wrappers, and more.

When to integrate legacy systems?

You should consider integrating legacy systems when, it’s important to replace without disrupting operations; replacing a system can be costly, time-consuming, and risky; you need modern functionality without overhauling the entire legacy system; your company is in mergers and acquisitions; integrating with modern systems can resolve security concerns; the legacy system’s data is important in decision-making, but connecting with modern systems can unlock data transformation and use, and more.

How to integrate legacy systems?

Key steps in legacy system integration include assessing the legacy system, developing a clear integration strategy, mapping and transforming data, implementing security measures, planning for data migration, and testing and validating the integration.

What should I check before integrating legacy systems?

Before integrating the legacy system, you should identify outdated components, analyze dependencies, review documentation, access APIs and interfaces, and conduct data-related checks, security and compliance checks, and more.

How do I know that my legacy system is good enough to integrate with modern systems?

You can know that by evaluating business factors (business value & fit, user needs, and strategic alignment) and assessing technical factors (architecture and code, security and risk, performance, maintainability, and cost).

How do we connect multiple legacy systems to new cloud apps?

To connect legacy to new cloud apps, you can use methods, including API integration, middleware like an ESB or iPaaS, direct database integration, and file-based integration.

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Sumeet Thakkar
Written by

With more than a decade of experience, Sumeet Thakkar is a Project Manager at MindInventory. Formerly an Android developer, Sumeet leverages his technical expertise and project management acumen to oversee and deliver cutting-edge projects. His journey from development to management equips him with the skills to efficiently lead teams and ensure project excellence.