A recently-published UK Government report has found that half of all government IT spending is dedicated to keeping monolithic systems going.
According to the Cabinet Office’s report, Organising for Digital Delivery, £4.7bn a year is spent on IT across all departments, and £2.3bn goes on patching up legacy systems – some of which date back 30 years or more. It also warns that the UK government could end up spending between £13bn and £22bn over the next five years on obsolete systems.
Even though governments across the globe – including UK government – have already taken monumental steps towards the modernisation of their core systems, it's no surprise to us that the need for governments to modernise their critical applications is still prevalent. In a blog in May, we discussed our top four legacy migration tips for government organisations. And since we published that, we discovered some interesting findings of our own through the 2021 Mainframe Modernisation Report that may help to put the issue into greater perspective, and further stress the importance of modernisation.
Poor information about legacy systems
We found that 77% of organisations across all sectors have started but failed to complete at least one modernisation programme, with this figure shooting up to 84% for government organisations. But why?
One common challenge is that mainframe applications tend to pass through many hands over many decades, often without proper documentation of features or functional relationships. Often, they are like ‘black boxes’ – entanglements of code written by developers who may have retired or left the organisation long ago. Many of the older systems were developed during a time when processing and handling big data was not the norm. We found that lack of information about legacy systems is a key challenge for 28% of organisations across all sectors, but for government organisations, this figure jumps up to 41% interestingly.
Whilst the reasons for this stark difference are unclear, one driver could be that government entities are often forced to evaluate and qualify modernisation partners based strictly on their adherence to request for pricing (RFP) processes, rather than on demonstrated success or innovative products and services.
It’s undeniable that the result of housing critical data on these monolithic systems can have dangerous consequences. We saw what happened in the State of New Jersey last March, when the sudden surge in pandemic-fueled benefit claims caused the state’s 40-year-old mainframes to crash. And not forgetting the UK Police National Computer (PNC) scandal in January of this year, where both human error and management failures led to the deletion of more than 200,000 offence records from the 47-year-old mainframe. And with the legacy skills gap only continuing to increase, it’s clear that outdated attitudes towards these systems need to change.
“Too reliable to fail”
Legacy mainframes are still used by around 70% of Fortune 500 companies today. The reasoning for it is clear – there’s no doubting that they are reliable and robust. It possibly also explains why 59% of our research respondents admit they have failed to get funding from leadership due to past modernisation program failures, with 42% say it’s because there is a lack of understanding on why the Cloud offers material advantages over alternatives.
Our report demonstrates that the benefits of legacy modernisation have never been clearer. 54% say it has allowed them to be more reactive to market changes – quite a jump from 33% last year. In addition, 72% of organisations consider their modernisation activity as a key part of improving their carbon footprint. You can read it for free here.
- How the Department for Work and Pensions (DWP) improved batch processing speed by 60%, thanks to modernisation
- How Cloud Migration Can Help Your Organisation to Go Green
- Struggling to Adopt DevOps? Maybe It’s Because of Your Aging Mainframe
- 78% of organisations have started at least one modernisation programme because of the pandemic, new report from Advanced reveals