In the fast-paced world of technology, Legacy Systems present a significant challenge for many companies.

A Legacy System, also known as “Inherited System” is software or technology that has been in use for a long time. While it still functions to meet the company’s needs, it is considered outdated or obsolete in modern technology.

These systems are often robust, reliable, and mission-critical. However, migrating them to new technologies can be so risky that any error in the process could seriously impact the organization’s operations.

Some of the key challenges of Legacy Systems are:

Obsolete Technology

Legacy systems are often written in old programming languages (such as COBOL or PL/1) or run on hardware that is no longer compatible with current technologies.

Difficult to Update

Implementing improvements or incorporating new functionalities into these systems can be challenging because they are based on technologies no longer taught academically, making the workforce scarce and expensive.

High Maintenance Costs

Maintaining a legacy system can be costly, as it requires specialists in outdated technologies. Also, the necessary hardware or software may be discontinued.

Security Risks

Since these systems cannot easily incorporate new security technologies, they may be more exposed to vulnerabilities.

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Unlocking the Future: Transforming Legacy Systems Once and For All

Why Modernize Legacy Systems?

Legacy Systems are at the heart of many companies. Statistics show that 43% of current banking systems still run on COBOL, a programming language with over 60 years of history. More than 80% of the world’s financial transactions go through these systems, highlighting their importance. However, the shortage of skilled COBOL programmers and the fact that universities no longer teach this language present a critical problem for companies that rely on these systems.

Rewriting them in a modern language like Java is not a long-term solution. Eventually, within about 30 years, those same rewritten systems will become “legacy” again.

The solution is GeneXus, a platform that uses Artificial Intelligence and Low-Code to modernize Legacy Systems once and for all.

The GeneXus Strategy: Gradual and Efficient Modernization

GeneXus offers two approaches to address the transformation of Legacy Systems:

Big Bang

This approach involves a complete rewrite of the system in a modern language and platform. Here, GeneXus demonstrates its power with tools that show greater productivity and performance compared to manual rewriting.

Gradual Modernization

In this approach, systems are updated modularly, gradually replacing or integrating new functionalities while the legacy system continues to operate. The key here is efficient integration between the legacy system and the new modules. GeneXus offers a wide range of tools to manage this type of integration, allowing for a smooth and controlled transition.

Hidden Assets in Legacy Systems

One of the greatest advantages of GeneXus’ strategy is its ability to extract and preserve the hidden digital assets within Legacy Systems. These assets include data accumulated over the years, the business logic hidden in the code, and the knowledge that developers and key users have embedded in the processes. GeneXus stores all this in its Knowledge Base, which is independent of the technology used.

Through tools like Data Reverse Engineering, GeneXus can read and extract the data model from legacy databases and convert it into part of the knowledge base, facilitating its migration.

GeneXus also allows encapsulating the logic of COBOL or RPG programs into external objects that can continue to be used until they are fully replaced.

Success Stories: Mitsubishi and Mizuho Bank

Modernizing Legacy Systems is inevitable and urgent, but it must be done strategically to prevent new systems from becoming obsolete over time.

Modernizing Legacy Systems doesn’t have to be a risky process. With GeneXus, you can update these systems safely and efficiently, ensuring your business remains competitive and prepared for the future.

GeneXus is the best ally for companies needing to transform their systems once and for all without compromising their operations.

Here are two success stories that demonstrate the power of GeneXus in modernizing Legacy Systems in demanding markets like Japan:

Mitsubishi Kamakura Works

This world leader in satellite component manufacturing faced the challenge of migrating its Legacy Systems without compromising operations. After evaluating several solutions, they chose GeneXus due to its multi-language, multi-platform, and multi-database capabilities. In just a few years, they managed to migrate several critical systems to GeneXus, with up to 44% savings in development time compared to Java.

Mizuho Bank

One of the 15 largest banks in the world faced the need to modernize its foreign exchange payment system to comply with the new international standards of the SWIFT network. The shortage of skilled PL/1 programmers (the language of their legacy system) and the growing competition from FinTechs led them to seek a fast and efficient solution. GeneXus proved to be the best option, with a quick learning curve for its developers and the ability to generate a new system compatible with the existing infrastructure.

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Overcoming “The Inheritance Trap” and Promoting Sustainability in Software Development

Modernize your Legacy Systems!

If you want more information on how GeneXus can help you modernize your Legacy Systems, email us at hello@genexus.com, or contact our offices and distributors worldwide.

If you’ve read this far, now is the time to take the first step toward modernizing your systems.