Legacy System Modernization: When to Upgrade vs. Replace

Tony, CEO of a 40-year-old manufacturing business in Wollongong, faced a critical decision: his core ERP system was 15 years old, vendor support was ending, and integration with modern tools was impossible. Replace the system entirely for $450,000, or upgrade incrementally? After extensive analysis, Tony chose a hybrid approach that saved $280,000 while modernizing critical capabilities.