Why Legacy Software is a Business Liability

LigoLab CEO Suren Avunjian's latest contribution to the Forbes Business Council is a cautionary tale for businesses using outdated software systems. In his article, Avunjian argued that computer technology has experienced exponential growth over the past 50 to 60 years, roughly doubling in power every two years. Because of this, it is easy for enterprise software solutions to go from "advanced" to "outdated," and businesses that continue using outdated software will struggle to reach their goals.

Read Latest Article: The Costs Associated With Not Upgrading To Modern Software Systems

Forbes Business Council Article Summary: The Costs of Not Upgrading to Modern Software

Avunjian noted that rapid advances in computer technology make cutting-edge business software quickly obsolete. Building from this point, he offered practical guidance for businesses to avoid the pitfalls of legacy technology.

He then identified the reasons organizations persist with legacy systems and explained the explicit and opportunity costs of not modernizing, building a bridge from theory to actionable insights.

Why Do Businesses Stick With Legacy Software Systems?

Six Common Reasons Organizations Resist Change

To further explain why companies hesitate to modernize, Avunjian listed these main reasons:

Fear and Risk of Disruption: Businesses fear the unknown, and the perceived risk of transitioning to a new system can outweigh the recognized cost of staying put.

Familiarity, Comfort, and Training: Change can sometimes inspire employee resistance, particularly when staff have spent years mastering an existing system.

Customization and Migration Difficulty: When a current system is heavily customized, migrating to a new one can feel daunting and complex.

Cost of Investing: Upgrading to a new software system typically requires a large upfront capital investment, which can be a barrier for organizations operating on tight budgets.

Perceived Short-Term Benefits: Familiarity and stability can overshadow the unrealized long-term benefits of a modern system.

Compliance Concerns: Regulatory risks during a transition can delay necessary upgrades.

The Real Costs of Delaying Software Modernization

Explicit Costs

Avunjian highlighted several explicit costs associated with continuing to rely on legacy software:

Staff Satisfaction and Retention: "Delaying software updates makes it harder and costlier to find staff willing to maintain old systems. IT professionals prefer working on modern solutions instead of outdated technologies.”

- Suren Avunjian, LigoLab CEO

Additional explicit costs, such as ongoing high maintenance, mounting integration hurdles, supplier dependence, stagnation of innovation, limited growth agility, and potential harm to your business reputation, are compounding threats that can undermine your market position if left unaddressed.

Opportunity Costs

Beyond these direct financial burdens, legacy software also translates into significant opportunity costs, missed revenue, slower growth, and weakened competitiveness in today’s fast-paced market.

How to Know When It's Time to Switch

Three Questions Business Leaders Should Ask

Avunjian suggested that business leadership teams should ask and honestly answer the following questions:

1. Does the current software still fulfill all business requirements, or are there gaps in functionality that slow productivity and growth?

2. Can the software continue to support the growing needs of the business, handling increases in users and data?

3. Is the software customizable, or is it rigid, creating limitations that obstruct processes and hinder potential innovation?

"Businesses should also consider their objectives, budget, growth plans, vendor reputation, support, integration, and development pipeline before choosing new software.”

- Suren Avunjian, LigoLab CEO

The Case for Acting Now

To emphasize the importance of prompt action, Avunjian closed by highlighting the long-term value of investing in modern software. By shifting resources from outdated systems to newer tools, businesses can save money and unlock new revenue opportunities.

"Technology, backed by the right platform and partner, can be a critical component of organizational growth and scalability. When businesses realize this, they put themselves on an advantageous path."

- Suren Avunjian, LigoLab CEO

LigoLab: Laboratory Information System Software Built to Stay Modern

For two decades, Avunjian has led a team of best-in-class personnel at LigoLab. This enterprise laboratory information system (LIS) company specializes in licensing advanced laboratory workflow management platforms to medical laboratories. Unlike other laboratory information system companies that sell rigid LIS software that can quickly become outdated, LigoLab prides itself on offering the most complete and adaptable LIS system available.

White paper: Comparing LigoLab Informatics Platform with Legacy Laboratory Information System Software

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Frequently Asked Questions About Legacy Software and Lab Information System Modernization

Why is legacy software considered a business liability?

Legacy software becomes a liability when it can no longer keep pace with business needs, regulatory requirements, or advancements in technology. It typically results in higher maintenance costs, integration challenges, reduced staff satisfaction, and an inability to scale, all of which hinder growth and competitiveness.

What are the most common reasons businesses delay upgrading their software?

The most common reasons include fear of disruption, employee resistance to change, heavily customized systems that are difficult to migrate, large upfront investment costs, perceived short-term benefits, and compliance concerns during the transition period.

What explicit costs are associated with continuing to use outdated software?

Explicit costs include higher maintenance expenses, difficulty finding and retaining IT staff willing to support legacy systems, increasing integration challenges, vendor vulnerability, limited innovation capacity, reduced agility, and reputational damage, all of which compound over time.

How should a business determine if it's time to switch to a new software solution?

Business leaders should assess whether the current software still meets all functional requirements, scales to support growing user and data needs, and remains flexible enough to support innovation. They should also evaluate vendor reputation, integration capabilities, future development roadmap, and total cost of ownership before making a decision.

How does this apply specifically to medical laboratories and laboratory information system software?

Medical labs face the same software modernization challenges as any business, but with higher stakes. Outdated laboratory information systems create workflow bottlenecks, compliance risks, lab billing inefficiencies, and data silos, directly impacting patient safety and lab profitability. Modern LIS software eliminates these barriers through automation, interoperability, and continuous platform innovation.

What makes LigoLab different from other laboratory information system companies?

LigoLab has designed the most complete and adaptable LIS system, continuously updated to meet the evolving needs of clinical laboratories and pathology groups. Customers benefit from new features, transparent pricing with no hidden or per-upgrade charges, and a laboratory workflow management platform designed for long-term flexibility and innovation.