The cost of running an older system keeps rising
Most of the rising cost of an older bespoke system sits around the code, not in it: support fees, licences and extended updates for old platform versions, oversized servers and staff time spent on workarounds. This page is for IT managers at medium and large organisations who need to find where that money goes and what can be cut without putting the system at risk.
Why the cost keeps rising
An older business system rarely gets more expensive because the code itself changes. The cost rises around it. The supplier’s support fee goes up each year. The server it runs on reaches the end of support, so you pay for extended updates or keep an old licence going. The hardware needs its own maintenance contract. Staff build workarounds for faults nobody fixes, and over time those workarounds become part of the job.
None of these costs is large on its own, and they sit in different budgets. That is why the total is rarely known.
Where the money goes
Supplier or contractor support. Support agreements tend to rise with inflation or more, whether or not much work is done. A contractor who is the only person who knows the system can set their own rate. Look at what was delivered for the fee in the last year.
Licences for old platform versions. An application built for an old version of SQL Server or Windows Server can keep you paying for licences, and sometimes hardware, that a supported version would not need. Third-party components such as reporting and grid controls often carry their own annual renewals.
Extended security updates. When a Windows Server or SQL Server version reaches the end of support, Microsoft sells Extended Security Updates for a limited period. They are bought a year at a time. For on-premises servers they generally require Software Assurance or subscription licences, and Microsoft has generally included them for servers running in Azure. Windows Server 2012 and 2012 R2 reached the end of their extended updates on 13 October 2026. For SQL Server 2016 the programme runs until 17 July 2029, and for Windows Server 2016 until 12 January 2030. Our end-of-life pages list the dates for each version.
Hosting. Servers are often sized for a peak that has passed, or run on hardware kept going past its replacement date. A system on its own dedicated server may be able to share one.
Staff time. Re-keying data from one system into another, exporting to a spreadsheet to produce a report, restarting a service each morning. Each takes minutes, but across a department and a year it adds up to a real cost that never appears on an invoice.
Duplicate systems. Organisations that have grown or merged often run two systems that do overlapping jobs, each with its own licences, servers and support. Our page on systems that do not talk to each other covers the related problem of moving data between them.
One person holding the knowledge. If only one person can change or fix the system, the cost appears when they are away or leave: a fault that takes days to resolve, or an expensive emergency arrangement. See the developer who built it has left.
How to find the savings
- List the real costs. Gather every invoice and contract that relates to the system: support, licences, hosting, hardware maintenance and extended updates. Add an estimate of staff time on manual steps.
- Check what each licence and server is for. For each one, find out which part of the system uses it. Some will be for features nobody uses, or servers kept for a job that moved elsewhere years ago.
- Compare the support arrangement. Look at what the current supplier or contractor delivered in the last year against what you paid. Ask whether the same cover could be had on different terms or from someone else.
- Find the overlaps. Map which systems hold the same data or do the same job. Where two overlap, one can often be retired once its data has moved.
- Retire what is unused. Switch off reports, integrations, servers and accounts that nobody relies on. Check first with the people who use the system, and keep a backup.
Some of this needs no developer at all. Working out which parts of the application use which licences and servers, and what it would take to move off an old version, usually does.
Where we would start
We would start with a fixed-price code audit. It establishes what the system depends on, what state it is in and which parts are still used. Set against your figures for licences, hosting and support, that shows where the savings are and what each would take.
From there the changes are made in stages, with the cheapest and safest first: retiring what is unused, moving to supported versions and resizing hosting. Larger changes, such as merging duplicate systems, follow once the earlier steps have shown their value. If you want the system looked after afterwards, it can move onto a maintenance arrangement that keeps its platform current, so the same costs do not build up again.
Talk to us
Describe the system and what you need. You will hear back from someone who can answer technical questions.
Discuss the system's running costs 0800 433 7990Where the money usually goes
- Support fees
- A supplier's annual support charge, or a contractor's day rate, that has risen year on year while the work done has stayed the same or fallen.
- Licences for old versions
- Database, operating system and third-party component licences kept only because the application has never been moved to anything newer.
- Extended security updates
- Paid Microsoft programmes that keep security fixes coming for Windows Server or SQL Server versions past the end of support.
- Servers
- Hosting sized for a peak that no longer happens, or ageing hardware kept running with its own maintenance contract.
- Staff time
- Manual steps, re-keying between systems and workarounds for known faults, spread across many people and rarely counted.
- Duplicate systems
- Two or more systems doing overlapping jobs, each with its own licences, hosting and support.
- Knowledge held by one person
- The cost you pay when that person is ill, leaves or retires, and nobody else can make a change or fix a fault.
What we would do
Assess the system
A code audit establishes what the system depends on, what condition it is in and which parts are still used.
Set out the costs
Together with your figures for licences, hosting and support, we list each cost against the part of the system it pays for.
Agree what to change
We recommend changes in order of saving against risk: what to retire, upgrade, consolidate or leave alone.
Make the changes in stages
Each change is rehearsed on a copy and released separately, so the system keeps running throughout.
Support it, if you want
The system can move onto a maintenance arrangement with us, which keeps platform versions current so the same costs do not build up again.
A good fit when
- Your organisation relies on a bespoke or in-house system, and its running costs have risen while it does no more than it did.
- You are paying, or about to pay, for extended security updates because the application has not been moved off an old server or database.
- A support renewal or a budget review has asked you to justify what the system costs.
- Several systems overlap and you want to know which could go.
Probably not for you if
- The system is a packaged product such as Sage or Microsoft Dynamics. Its licence and support costs are a matter for the vendor or a reseller.
- You want to cut the cost of general IT support for PCs, networks and email. That is a managed IT provider's work, not ours.
- You are a startup or a small business looking for the cheapest way to build something new. We work with established organisations on systems already in use.
Questions we are asked
Is it cheaper to replace it with an off-the-shelf product?
Sometimes. If the system does a standard job, such as accounts, HR or CRM, a packaged product may cost less to run. Compare the full cost over several years, though: subscription fees per user, the cost of moving the data, changes to how staff work and any integrations you lose. Bespoke systems usually exist because the work did not fit a product, and that tends to still be true.
Do extended security updates make sense?
As a bridge, yes. They keep security fixes coming for a fixed period while you upgrade, and buy time when an upgrade cannot be done before support ends. They do not fix anything else, they are bought a year at a time, and they end. If you are paying for them with no upgrade planned, the upgrade is usually the better use of the money.
How do we find out what the system actually costs?
Start with the invoices: support, licences, hosting and any hardware maintenance that exists for this system. Then ask the teams that use it how much time they spend on manual steps and workarounds. Put both in one list against the part of the system each cost pays for. The total is often larger than the support contract alone suggests.
Can we cut costs without changing the code?
Often, yes. Retiring an unused server, resizing hosting, dropping licences for components nothing uses and moving a database to a supported version frequently need little or no change to the application. Changes that remove manual steps or merge duplicate systems usually do need development work.
Should we move it to the cloud to save money?
Not automatically. Moving an older application as it stands often costs as much or more than running it where it is. It can save money when the current servers are oversized or due for replacement, or when it lets you stop paying for something else. Work out the costs both ways before deciding.
Tell us about your system
Say what it does, what it is built on and what is worrying you. We will reply with what we would look at first and whether we are the right people to help.