About 15% of IT budgets are typically spent on supporting legacy systems, according to Mookho Kabi, director at Proceed Group Africa, who was speaking at the 20th annual Business Intelligence Summit.
This figure underscores the need for companies to rethink their approach to legacy systems and prioritise decommissioning.
Kabi said data is the heart of every organisation; however, many companies overlook the fact that data comes with a price tag, consuming a significant portion of their budget. “The bigger your data, the bigger your infrastructure is going to be.”
She emphasised that decommissioning can no longer be ignored, adding that when implementing new systems or technologies, companies often focus on the benefits and functionality, overlooking the need to decommission the older systems they’re replacing.
Kabi asked the question: how can businesses access all their historical data without incurring additional costs from maintaining two or more systems? Companies would still need to keep the old system operational, which drains the budget and makes it more challenging to transition the entire company to the new system.
She said one of the biggest drivers for decommissioning old systems is to cut infrastructure costs. To avoid these costs and ensure access to data, Kabi said many companies are turning to cloud-based storage and reporting solutions that let them retire old systems without losing visibility of their legacy data.
According to Kabi, data migration is a complex process that serves as a revealing project, highlighting issues within a company's data environment. This often uncovers how much unnecessary data the company has been storing and paying for, shedding light on inefficiencies and potential cost savings.
She highlighted key considerations for decommissioning legacy systems:
- Centralisation of data – Companies should implement a central application that consolidates all legacy data, making it easily accessible. This application should be capable of decommissioning multiple systems into a single, unified platform.
- Legacy data migration – Migrating critical data from the legacy system to modern platforms or storage solutions, while maintaining its integrity and ensuring accessibility.
- Archiving and reporting – Archiving and reporting guarantee the secure storage of historical data, attachments and reports, making them accessible for future reference, compliance and audits.
- Data retention management – Effective data retention during decommissioning ensures legal compliance and facilitates a smooth transition to modern systems.
Kabi also highlighted some of SA's legislation governing the decommissioning of systems and the retention of legacy data.
“The Protection of Personal Information Act mandates that personal information be kept only as long as needed, and once its purpose is fulfilled, it must be destroyed or de-identified to prevent unauthorised access. Meanwhile, the Companies Act 71 of 2008 requires you to keep specific records in the system, such as documents, accounts and books, for at least seven years for legal and regulatory compliance.”
The Data Protection and Privacy Policy is also important as it governs the decommissioning of legacy data. Under this policy, companies should create data retention and archiving policies to meet legal requirements, detailing how to securely store, access and decommission legacy data.
When comparing the costs of maintaining an existing system versus decommissioning it, Kabi’s business case highlights that decommissioning can lead to substantial savings. Some companies have reported savings of up to 80% of the total cost of ownership by opting to decommission, she concluded.
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