Capterra Glossary
IT
Legacy Application Or System

Capterra Glossary

Legacy Application Or System

A legacy system (or legacy application) is an information system that uses outdated technologies and processes. A team in an organization might still rely on this system to facilitate day-to-day tasks but can't fulfill its objectives because of technological limitations. For example, SMBs might use an enterprise resource planning (ERP) system that doesn't interact with updated analytics tools. As a result, decision-makers can't generate valuable data insights about business processes. A legacy system can provide teams with various challenges:

  • The system might put data security at risk.

  • It might be expensive to operate because managers have to continuously fix issues with the system.

  • It might be difficult for employees to use.

  • It isn't compatible with newer software.

What Small and Midsize Businesses Need to Know About Legacy Application Or System

An SMB might need to upgrade from a legacy system (or invest in a new system) to improve productivity across its organization. This process, called digital transformation, allows an enterprise to gain more value from its technology. 

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