Speed Data Podcast: Legacy technology (Part 1)

Jan: Hi, I'm Jan. So, I've got a trending tech topic for you today on Speed Data. We're diving into a really pressing issue that's been bubbling up in lots of recent UK Government tech reports.

Chris: Yeah, and it's something I've been hearing a lot about, Jan. Legacy systems... those outdated technology dinosaurs that are, quite frankly, holding back our public services in a major way. It's something like a £45 billion problem! That's the productivity savings we're losing because, well, these systems are just... they're not fit for purpose anymore.

Jan: £45 billion? Wow, that's an enormous figure! What exactly makes these systems so problematic, Chris?

Chris: Well, the thing is these are essentially end-of-life systems that suppliers don't even support anymore. They exceed acceptable risk thresholds, but are still running essential services. They've been faithfully working away in the background for decades, right, but come with some serious, serious baggage. They're undermining service reliability, creating absolute cybersecurity nightmares, and they're blocking implementation of exciting new technologies like AI.

Jan: That sounds really concerning. How widespread is this issue across government departments?

Chris: It's pretty dire, to be honest. According to the State of Digital Government Review Report, about 28% of central government IT systems are now classified as legacy technology – that's actually up from 26% last year. But it varies massively across sectors. NHS trusts are reporting rates between 10 and 50%, police forces between 10 and 70%. 

Jan: Those are quite big numbers!

Chris: I know, and get this: 15% of surveyed organisations can't even quantify their legacy estate. They literally don't know what they're dealing with!

Jan: Really? That's... that seems like a huge blind spot! What about the security implications of all this?

Chris: Absolutely massive implications, Jan. The report shows that 40% of cyber incidents targeting the public sector exploit vulnerabilities in aging systems. Out of 430 incidents recorded by The National Cyber Security Centre between September 2023 and August 2024, 89 are considered 'nationally significant', meaning they are considered high risk.

Jan: So why don't they just replace these systems then? Is it a budget issue or something else? 

Chris: Well, yes and no. These are complex applications that have evolved over a long time to serve very specific needs. Many users are actually comfortable with them, despite their clunky interfaces. They typically run essential services, hold vast amounts of historical and sensitive data, and are deeply integrated with other government systems. Replacing them isn't just expensive – it can be hugely disruptive and risky, with many replacement projects facing delays and spiralling costs.

Jan: I see. So what's being done to address this issue? Are there any plans in motion?

Chris: There are definitely efforts underway. The government just published a report called "A Blueprint for Modern Digital Government" with a six-point plan for reform. It includes joining up public services, harnessing AI for public good, strengthening infrastructure, and investing in talent. They're exploring tailored funding models for digital services, legacy remediation, and staged, agile funding that better enables exploratory work with new technologies.

Jan: That sounds promising. Do you think there's enough momentum in the industry to tackle this problem?

Chris: I think we've reached a bit of a crunch time to be honest. The pressure is mounting for departments to boost productivity, particularly through AI, while also protecting digital services against increasingly sophisticated cyber threats. The government's renewed focus on digital transformation creates a timely opportunity to tackle these longstanding issues. But I don't think it's going to be easy. And of course, these legacy challenges aren't just limited to the public sector – a global survey found that 80% of organisations agreed that inadequate or outdated technology is holding back progress. 

Jan: It sounds so complex doesn't it? So what would you say is the path forward here?

Chris: The challenges are definitely big – both financially and operationally – but they're not insurmountable. It's about making progress today while building toward a long-term digital vision, creating a realistic roadmap for transformation. Before diving into AI and other exciting technologies, we need to fix the foundations. That means addressing these legacy systems strategically, not just throwing money at the problem.

Jan: Well, that's really fascinating, Chris. I think we're going to have to leave it there for today's episode of Speed Data. Thanks for breaking down this complex issue for us!

Chris: Absolutely, Jan. And for our listeners who want to dig deeper into this topic, there's a follow-on podcast called "Before AI, Fix the Foundations in UK Public Sector Tech" that provides practical insights on tackling legacy modernisation. Thanks for listening everyone!

 To find out more, read our latest blog on how legacy systems are holding back UK public services