Untangling Enterprise Reliance on Legacy Systems

While the push for digital transformation has been underway for years, many enterprises still have legacy technology deeply ingrained in their tech stacks. In many cases, these systems are years or even decades old but remain integral to keeping a business operational. Simply ripping them out and replacing them is often not a plausible quick fix.   “It’s actually quite hard to fully demise previous versions of technology as we adopt new versions, and so you end up with the sort of layering of various ages of all the technologies,” says Nick Godfrey, senior director and global head, office of the CISO at Google Cloud.   Given that continued use of legacy systems comes with risk, why are legacy systems still so common today? How can enterprise leaders manage that risk and move forward?   A Universal Challenge  In 2019, the Government Accountability Office (GAO) identified 10 critical federal IT legacy systems. These systems were 8 to 51 years old and cost roughly $337 million to operate and maintain each year.   Government is hardly the only sector that relies on outdated systems. The banking sector uses COBOL, a decades-old coding language, heavily. The health care industry is rife with examples of outdated electronic health record (EHR) systems and legacy hardware. One survey found that 74% of manufacturing and engineering companies use legacy systems and spreadsheets to operate.   Related:Tech Company Layoffs: The COVID Tech Bubble Bursts “If we talk about banking, manufacturing, and health care, you would find a big chunk of legacy systems are actually elements of the operational technology that it takes to operate that business,” says Joel Burleson-Davis, senior vice president of worldwide engineering, cyber at Imprivata, a digital identity security company.   The cost of replacing these systems isn’t simply the price tag that comes with the new technology. It’s also the downtime that comes with making the change.   “The hardest way to drive the car is when you’re trying to change the tire at the same time,” says Austin Allen, director of solutions architecture at Airlock Digital, an application control company. “You think about one hour of downtime … you can be talking about millions of dollars depending on the company.”  A survey conducted by commercial software company SnapLogic found that organizations spent an average of $2.7 million to overhaul legacy tech in 2023.   As expensive as it is to replace legacy technology, keeping it in place could prove to be more costly. Legacy systems are vulnerable to cyberattacks and data breaches. In 2024, the average cost of a data breach is $4.88 million, according to IBM’s Cost of a Data Breach Report 2024.   Related:Securing a Better Salary: Tips for IT Pros Evaluating the Tech Stack  The first step to assessing the risk that legacy systems pose to an enterprise is understanding how they are being used. It sounds simple enough on the surface, but enterprise infrastructure is incredibly complicated.   “Everybody wishes that they had all of their processes. and all of their systems integrations documented, but they don’t,” says Jen Curry Hendrickson, senior vice president of managed services at DataBank, a data center solutions company.   Once security and technology leaders conduct a thorough inventory of systems and understand how enterprise data is moving through those systems, they can assess the risks.   “This technology was designed and installed many, many years ago when the threat profile was significantly different,” says Godfrey. “It is creating an ever more complex surface area.”   What systems can be updated or patched? What systems are no longer supported by vendors? How could threat actors leverage access to a legacy system for lateral movement?   Managing Legacy System Risk  Once enterprise leaders have a clear picture of their organizations’ legacy systems and the risk they pose, they have a choice to make. Do they replace those systems, or do they keep them in place and manage those risks?  “Businesses are fully entitled — maybe they shouldn’t [be] — but they’re fully entitled to say no, ‘I understand the risk and that’s not something we’re going to address right now,’” says Burleson-Davis. “Industries that tend to have lower margins and be a little more resource-strapped are the likeliest to make some of those tradeoffs.”  Related:Mobile App Integration’s Day Has Come If an enterprise cannot replace a legacy system, its security and technology leaders can still take steps to reduce the risk of it becoming a doorway for threat actors.   Security teams can implement compensating controls to look for signs of compromise. They can implement zero-trust access and isolate legacy systems from the rest of the enterprise’s network as much as possible.   “Legacy systems really should be hardened from the operating system side. You should be turning off operating system features that do not have any business purpose in your environment by default,” Allen emphasizes.   Security leaders may even find relatively simple ways to reduce risk exposure related to legacy systems.  “People will often find, ‘Oh, I’m running 18 different versions of the same virtualization package Why don’t I go to one?’” Burleson-Davis shares. “We find people running into scenarios like that where after doing a proper inventory [they] find that there was some low-hanging fruit that really solved some of that risk.”  Transitioning Away from Legacy Systems  Enterprise leaders have to clear a number of hurdles in order to replace legacy systems successfully. The cost and the time are obvious challenges. Given the age of these systems, talent constraints come to the fore. Does the enterprise have people who understand how the legacy system works and how it can be replaced?  “You end up with a very complex skills requirement inside of your organization to be able to manage very old types of technologies through to cutting-edge technologies,” Godfrey points out.   A change advisory board (CAB) can lead the charge on strategic planning. That group of people can help answer vital questions about the timeline for the transition, the potential downtime, and the people necessary to execute the change.   “How does that affect anything downstream or upstream? Where is my

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Micron CEO Accused Of Insider Trading In Fla. Investor Suit

By David Minsky ( January 23, 2025, 6:35 PM EST) — A Micron Technology Inc. shareholder has accused the company CEO and several board members of insider trading after selling $70 million worth of stock just before the release of disappointing financial results regarding demand for its semiconductors…. Law360 is on it, so you are, too. A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions. A Law360 subscription includes features such as Daily newsletters Expert analysis Mobile app Advanced search Judge information Real-time alerts 450K+ searchable archived articles And more! Experience Law360 today with a free 7-day trial. source

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Navigating Economic Waters: The New US Administration's Spending Scenarios And Global Impact

In 2025, the United States holds a pivotal role in the global economy, commanding 40% of tech spend, 37% of the digital economy, and 26% of global GDP. Despite the economic policy uncertainty of the new administration, several factors stand out as likely influencers of future US economic growth: Increased spending through tariffs and tax cuts. If the new administration helps to increase consumer spending through tax cuts and the imposition of tariffs on imported goods, the Federal Reserve will need to increase interest rates to manage inflation. Higher interest rates lower inflation, strengthen the US dollar, and attract foreign capital. In this scenario, countries with more US dollar debt such as Egypt, Turkey, and Argentina would suffer. A leaner government. Plans to cut jobs to streamline government operations could slow economic growth and reduce spending on imports, which would impact the economic growth of net exporter countries to the US such as China, Mexico, Vietnam, and Germany. The importance of consumer resilience. The new administration will place a high priority on protecting incomes. In the last three years, inflation cannibalized income growth gains. Large variations of per capita personal consumption expenditure growth across states over the last three years highlight state inequality and an uneven post-pandemic economic recovery. Sector-specific changes. The new administration will likely decrease spending on the green economy, reduce the reliance on chip imports, and increase defense spending. European industries, particularly life sciences, automotive, and chemicals, should brace for the impact of the new US administration’s policies. Eleven percent of EU exports to the US is from road vehicles, and 18% is from medicinal and pharmaceutical products. Protectionist measures from higher import tariffs could compel European car manufacturers to augment their production within the US. Additionally, the pharmaceutical sector might face pressures to lower prices, and the banking sector could see increased competition amidst deregulatory measures in the US. Businesses and countries will need to prepare for these various scenarios, and resilience and adaptability will be critical factors to success. European sectors must prepare for a protectionist US car industry, more pressure to lower pharmaceutical prices, and, as the US is a net exporter of financial services, more banking competition. Driven by the US, Forrester forecasts that North America will see the highest regional tech spend growth in 2025. We just published a report on the potential impact of a new US administration and policy on tech spend. Keep an eye out for Forrester’s upcoming global, US, and European tech forecasts, 2024 to 2029, that are soon to be published. Please contact your Forrester account manager or client success manager to set up a guidance session with me to learn more. source

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67% of digital transformations delayed due to skill shortages

In North America, the length of skills-related digital delays varies, with 57% saying it has pushed them one to five months behind schedule, 32% saying it has delayed transformation initiatives by five to 10 months, and 11% saying they have been delayed 10 to 15 months due to insufficient skilling. According to IDC, businesses are most likely to be looking for tech workers with skills in AI (94%), cybersecurity (89%), IT operations (84%), ITSM (75%), and gen AI (73%). IDC recommends IT leaders to leverage generative AI to create personalized and improved training courses and upskilling programs for employees. By creating robust learning environments, giving employees the opportunity to gain hands-on experience with new skills, and rewarding learners for upskilling by offering tangible benefits such as cash bonuses, time off, and other incentives, IT leaders can help shore up existing skills gaps. source

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The Fed. Circ. In 2024: 5 Major Rulings To Know

By Jeremiah Helm and Sean Murray ( January 21, 2025, 2:29 PM EST) — This article is part of a monthly column that highlights an important patent appeal. In this installment, we examine 2024’s most significant rulings…. Law360 is on it, so you are, too. A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions. A Law360 subscription includes features such as Daily newsletters Expert analysis Mobile app Advanced search Judge information Real-time alerts 450K+ searchable archived articles And more! Experience Law360 today with a free 7-day trial. source

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Trump repeals Biden’s AI oversight order, shifts focus to innovation-driven policies

“Public safety and innovation will inevitably pull in different directions when it comes to regulations,” said Abhishek Sengupta, Practice Director at Everest Group. “Most nations recognize the criticality of AI in preserving and enhancing their national influence on the global stage. Amidst this, it seems likely that at least in the near term, regulations may cede to the need for immediate AI innovation.” While industry voices have welcomed the removal of regulatory constraints, some experts warn that the lack of oversight could lead to uneven implementation and governance challenges. “Deregulation can spark short-term innovation, giving US enterprises the flexibility to experiment and deploy AI at speed,” said Abhivyakti Sengar, Senior Analyst at Everest Group. “However, repealing Biden’s AI executive order risks creating a fragmented landscape with uneven governance standards. Without clear frameworks, enterprises could also struggle to adopt AI responsibly, weakening America’s leadership by fostering inconsistent, patchwork solutions.’” source

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Courts Must Stick To The Science On Digital Addiction Claims

By Christopher Gismondi and Allen Waxman ( January 22, 2025, 5:10 PM EST) — In recent years, there has been an ongoing series of personal injury and product liability lawsuits alleging that the use of certain digital products and services is causing plaintiffs to develop behavioral addictions, including to social media and video games…. Law360 is on it, so you are, too. A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions. A Law360 subscription includes features such as Daily newsletters Expert analysis Mobile app Advanced search Judge information Real-time alerts 450K+ searchable archived articles And more! Experience Law360 today with a free 7-day trial. source

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How To Level-Up Your Creator Marketing Program

Creator marketing programs have become a cornerstone of the social media marketing strategy across industries. As such, Forrester recommends an evolved set of metrics for measurement to optimize and show overall impact on the organization. Considering that two-thirds of B2C marketing decision-makers planned to increase investment in creator/influencer programs in 2024, teams from experimental to expert status must ensure that they are activating the right levers to maximize these partnerships. Add New Layers As The Investment Grows In our recent report, Forrester introduces frameworks for marketers to assess their progress in the journey toward running an effective multidimensional program, guiding them through the building blocks necessary at each investment level to achieve it. To effectively scale your creator marketing program, we recommend that you: Increase the number and types of creators. A wide array of creators with varying areas of specialty increases reach, shows different facets of the brand, and fosters connection with many communities. Add new business objectives. More substantial creator partnership investments allow marketers to widen the breadth of their creator activations and deliver on more business objectives. Diversify content types and delivery. Creator content is no longer limited to the confines of a consumer’s feed or “for you” page. Content repurposed for new channels such as out-of-home and CTV maximizes reach beyond the organic post. Invest in the right tech, services, and headcount. To run a full-scale creator program, adopt an influencer marketing platform and expand team support, insourced and/or outsourced. Prioritize mature measurement practices. Forrester’s Creator Composite Measurement Model aids in establishing a well-rounded measurement strategy to optimize creator marketing efforts and assess impact. This will ensure vested buy-in from leaders, unlocking greater opportunity for growth and exploration. Read the full report to leverage Forrester’s frameworks and strategically grow and scale creator marketing programs at any phase of commitment, from nascence to multimillion-dollar investment. Forrester clients, schedule a guidance session with me to discuss your creator marketing strategy. source

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Galileo launches ‘Agentic Evaluations’ to fix AI agent errors before they cost you

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Galileo, a San Francisco-based startup, is betting that the future of artificial intelligence depends on trust. Today, the company launched a new product, Agentic Evaluations, to address a growing challenge in the world of AI: making sure the increasingly complex systems known as AI agents actually work as intended. AI agents — autonomous systems that perform multi-step tasks like generating reports or analyzing customer data — are gaining traction across industries. But their rapid adoption raises a crucial question: How can companies verify these systems remain reliable after deployment? Galileo’s CEO, Vikram Chatterji, believes his company has found the answer. “Over the last six to eight months, we started to see some of our customers trying to adopt agentic systems,” said Chatterji in an interview. “Now LLMs can be used as a smart router to pick and choose the right API calls towards actually completing a task. Going from just generating text to actually completing a task was a very big chasm that was unlocked.” A diagram showing how Galileo evaluates AI agents at three key stages: tool selection, error detection and task completion. (Credit: Galileo) AI agents show promise, but enterprises demand accountability Major enterprises like Cisco and Ema (the latter founded by Coinbase’s former chief product officer) have already adopted Galileo’s platform. These companies use AI agents to automate tasks from customer support to financial analysis, and report significant productivity gains. “A sales representative who’s trying to do outreach and outbounds would otherwise use maybe a week of their time to do that, versus with some of these AI-enabled agents, they’re doing that within two days or less,” Chatterji explained, highlighting the return on investment for enterprises. Galileo’s new framework evaluates tool selection quality, detects errors in tool calls, and tracks overall session success. It also monitors essential metrics for large-scale AI deployment, including costs and latency. A dashboard showing how Galileo evaluates AI agents at three key stages: tool selection, error detection and task completion. (Credit: Galileo) $68 million in funding fuels Galileo’s push into enterprise AI The launch builds on Galileo’s recent momentum. The company raised $45 million in series B funding led by Scale Venture Partners last October, bringing its total funding to $68 million. Industry analysts project the market for AI operations tools could reach $4 billion by 2025. The stakes are high as AI deployment accelerates. Studies show even advanced models like GPT-4 can hallucinate about 23% of the time during basic question-and-answer tasks. Galileo’s tools help enterprises identify these issues before they impact operations. “Before we launch this thing, we really, really need to know that this thing works,” Chatterji said, describing customer concerns. “The bar is really high. So that’s where we gave them this tool chain, such that they could just use our metrics as the basis for these tests.” Addressing AI hallucinations and enterprise-scale challenges The company’s focus on reliable, production-ready solutions positions it well in a market increasingly concerned with AI safety. For technical leaders deploying enterprise AI, Galileo’s platform provides essential guardrails for ensuring AI agents perform as intended while controlling costs. As enterprises expand their use of AI agents, performance monitoring tools become crucial infrastructure. Galileo’s latest offering aims to help businesses deploy AI responsibly and effectively at scale. “2025 will be the year of agents. It is going to be very prolific,” Chatterji noted. “However, what we’ve also seen is a lot of companies that are just launching these agents without good testing is leading to negative implications…The need for proper testing and evaluations is more than ever before.” source

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Where CIOs should place their 2025 AI bets

“In 2025, companies at the forefront of the agentic AI revolution will face a critical challenge: balancing the delivery of seamless, done-for-you experiences with the need to give customers ultimate authority and control over final decision-making at their discretion,” says Ashok Srivastava, chief data officer at Intuit. “To achieve this, innovation must focus on AI systems that seamlessly blend advanced autonomy with user-centric control, incorporating adaptive transparency, ethical safeguards, and context-aware learning to empower customer decision-making.” What to bet on: Expect significant agentic AI hype in 2025 on one end and potential employee fears around autonomous agents taking their jobs on the other. CIO should bet on change management programs and evangelizing high-quality agents with whom employees collaborate to deliver value beyond productivity. Build toward intelligent document management Most enterprises have document management systems to extract information from PDFs, word processing files, and scanned paper documents, where document structure and the required information aren’t complex. Examples include scanning invoices, extracting basic contract information, or capturing information from PDF forms. Even simple use cases had exceptions requiring business process outsourcing (BPO) or internal data processing teams to manage.  source

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