From Tech Debt to Tech Wellness

The term tech debt is often spoken about with a certain degree of uneasiness. For many IT leaders today, managing tech debt is a critical component of IT success. As a Programme Manager who specialises in IT lifecycle management and infrastructure modernisation, I see every day the impact that technical debt can quickly have on an organisation – both operationally and strategically. Knowing when and how to deal with legacy technology can be challenging.

Firstly, let’s look at the term a little closer. Tech debt is accrued work that is “owed” to an IT system. Tech debt is sometimes called code debt, and has always been considered a pretty typical side effect of software engineering. It now refers to software, hardware, networks and even old operating systems. If technical debt is not repaid, it can accumulate “interest,” making it harder to implement changes. Ignored technical debt increases system disorder and the cost of further rework. Like financial debt, technical debt isn’t always negative and is sometimes necessary (e.g. for a proof-of-concept) to advance projects. However, some experts argue that the technical debt metaphor downplays the consequences, leading to inadequate prioritisation of the essential work needed to address it.

Over the years working with various large enterprise organisations, I’ve seen lots of tech debt accumulated. In the earlier years, it happened most frequently with IT assets such as websites. If there was a bug or an issue, there would be a quick fix and the team would then be too busy to go back and fix it properly. This was not unusual, and a lot of tech debt was accumulated that way. These quick fixes, or sacrificing quality to meet deadlines, are often a false economy. They inevitably cost more in the long run – between 10-20% on top of the original project costs.

Tech debt is quite common in an organisation and a certain amount of it is acceptable. But significant tech debt that’s left unchecked can hinder innovation, increase operational costs, and expose organisations to significant risks, including inefficiencies, vulnerabilities and cyber risks.

Unfortunately, many organisations’ main concern when looking into legacy modernisation revolves around how to justify the cost and effort of moving or updating legacy technology. They lean into the mantra of “if it ain’t broke, don’t fix it”.

The Rising Challenge of Technical Debt in Enterprise Infrastructure

Today, tech debt is a bigger problem than in the past and can manifest across the entire IT estate. It is a valid concern and increasingly true in an organisation’s infrastructure for the following reasons:

1. Complexity and Integration: Modern IT environments are highly complex, with numerous interconnected systems, cloud services, and on-premises infrastructure where quick fixes or temporary solutions can proliferate.
2. Rapid Technological Change: Infrastructure technologies evolve rapidly and often the implications of older systems are not fully addressed. For example, moving to a cloud-based infrastructure without fully decommissioning or updating legacy systems can create inefficiencies and integration issues.
3. Maintenance and Upgrades: Regular maintenance and upgrades are essential to keep infrastructure efficient and secure. However, these activities are sometimes deferred due to budget constraints, resource limitations, or other priorities.
4. Security Risks: Unaddressed technical debt in infrastructure can pose significant security risks. Older systems or improperly integrated components can become vulnerable to cyberattacks, making the need to address technical debt in infrastructure critical for maintaining security.
5. Scalability Issues: As businesses grow, the ability of their infrastructure to scale effectively is crucial. Accumulated technical debt can hinder scalability, making it difficult to adapt to increased demand or new business requirements.

We’re currently working with a number of well-established global organisations who have been around and growing over 50+ years. Over that time, they’ve put in place a series of point-to-point solutions which helped to grow the company. But as the years went on, all of these solutions have become a bit unwieldy with different dependencies across different systems.

One of the common challenges we see is in data centre migration for example. With big legacy servers running critical applications that feed into a host of others, it can become like a game of Tetris, where we need to move things around and find the best fit.

As an organisation you’re carrying risk; the risk that you won’t be getting the latest security patches, the risk that if you encounter an issue you won’t have support, and the risk that you can’t embrace innovation. If you can imagine, a lot of these old systems simply aren’t compatible with the cloud. Then you’re into transformation activities to make sure that an organisation is cloud ready; naturally, this leads to heightened costs and slows down the pace of innovation.

The good news is that the expertise exists to run these migration programmes effectively. With hands-on experience from similar projects across global organisations, the challenges are often common and can be overcome with the right diligent and intrinsic approach. Starting with data gathering and knowledge building.

Minimising your tech debt – where to begin?

Lifecycle management is a simple, but clear way to minimise tech debt. Every application, every system, every piece of hardware has a specific lifecycle – where it is still effective. For instance, if an organisation invests in new hardware, they’re going to sweat that for five to seven years. About two and a half years before that end date, they need to start looking at new hardware because, realistically, that’s how long it takes to replace. Likewise with software, organisations will purchase a three-year licence or a three-year support contract. About one and a half years before the end of the contract they need to plan to renew or upgrade.

For successful lifecycle management, organisations need to start with good data, data about the configuration of their hardware, software and systems, all stored in a CMDB (configuration management database). Managing that data is key, including setting up reminders for licence renewals and impending end-of-life replacements.

This database should also include an organisation’s core applications, with details on how they connect or integrate with each other. Understanding the dependencies is crucial to ensure continuity when older applications are switched off.  It also provides oversight that can reveal overlaps, where two applications are performing the same task. This helps guide rationalisation projects.

For example, data centre consolidation is a pivotal step for many of our clients wanting to reduce technical debt and ensure future resilience – but acknowledging and addressing the associated risks early on is crucial for success. We’ve been managing some large-scale projects across diverse industries, either migrating or decommissioning hundreds of workloads to reduce the number of data centres. We deploy a thorough approach incorporating detailed analysis and careful decision making to mitigate potential issues. This process entails capturing extensive data to understand the intricacies of each application involved. Legacy applications are evaluated for elimination, migration to new operating systems, or replacement with new applications. Effective change management, including stakeholder collaboration, is essential to ensure a smooth transition and minimise future technical debt.

While managing technical debt is often necessary, there are situations where maintaining it can provide stability, continuity, and compliance advantages. This is also where a thorough assessment can be invaluable. For instance, in a mission-critical environment, replacing a reliable and stable platform or system might pose significant transition risks. Preserving technical debt can also sometimes ensure continuity by utilising the existing skill sets of employees, thereby avoiding the expenses and time associated with re-training. In regulated industries, legacy systems that already meet stringent standards can reduce the risk and effort required to certify new systems.  Evaluating the specific context, needs and circumstances of an organisation is necessary to determine the right decision at the right time.

Managing tech debt leads to growth and gains

There is a significant payoff for the investment in analysing, organising and managing decisions on tech debt. Companies that do so experience 20% higher revenue growth than those in the bottom 20th percentile of tech debt reduction, according to McKinsey. Paying down that tech debt can free up an organisation’s IT department and engineers to almost 50% more time working on projects that drive value. Of course, it also reduces costs significantly because less time is devoted to complex fixing issues. Uptime and resiliency are also improved; systems are more reliable, leading to better efficiencies and happier end users. Becoming tech forward can provide the engine for continual growth and productivity.

Effectively managing tech debt can lead to tech wellness – where IT infrastructure is robust, scalable, and ready to support future growth – where organisations can ultimately achieve a more sustainable and efficient IT environment. At Saros, we have seen first-hand the results it can deliver. From data centres to end user computing, we’ve managed the delivery of large-scale international programmes designed to increase tech wellness.

The one key takeaway? Prioritise and plan for continuous modernisation. Regularly assess the current state of your infrastructure, setting clear priorities for addressing technical debt, and implementing an ongoing strategy to update and optimise systems incrementally rather than waiting for a major overhaul.  Having legacy tech isn’t always an issue but not understanding it is.