Despite the rise of cloud-based solutions, many UK companies in manufacturing, engineering, logistics, and professional services continue to depend on outdated on-premise technology—often at significant unseen cost.
A recent Financial Conduct Authority study found that 92% of financial services firms still run legacy systems, with 78% of their data stored on-site. Essenkay, a business transformation specialist, warns that this reliance extends far beyond finance and can expose organisations to productivity losses, data silos, and security risks as economic pressures mount.
Operational Inefficiencies
“Legacy systems may seem to ‘just work’, but over time they quietly restrict business productivity, create blind spots in operations, and even open up cybersecurity vulnerabilities,” explains Simon Langdown, Co-founder and Senior Financial Consultant at Essenkay. Outdated platforms often force staff into time-consuming manual workarounds—reconciling spreadsheets, correcting stock errors, or juggling disconnected supplier records—dragging down responsiveness and accuracy.
Data Silos
Without a modern ERP, critical information becomes scattered across spreadsheets, local servers, and legacy applications. Essenkay highlights that centralising data is essential for consistent reporting and faster decision-making. Cloud ERP platforms like Microsoft Dynamics 365 Supply Chain Management provide a unified dashboard, enabling teams to forecast cash flow, optimise stock levels, and respond to market changes based on a single source of truth.
Cybersecurity Vulnerabilities
Half of all businesses report at least one cyberattack per year, and legacy hardware—from barcode scanners to industrial IoT devices—often lacks up-to-date protection. Legacy systems can’t easily adopt multi-factor authentication or automatic security patches. Microsoft Dynamics 365, hosted on Microsoft Azure, delivers built-in security features that keep defences current without overburdening IT teams.
Missed Growth Opportunities
Outdated technology doesn’t just risk disruption; it also limits competitiveness. Companies without advanced analytics tools may overlook trends in customer demand or inventory waste. Essenkay points out that AI-driven forecasting within modern ERPs can help manufacturers cut stock losses and enable logistics firms to anticipate seasonal peaks—opportunities older systems simply can’t support.
To explore how upgrading from legacy systems to a cloud ERP can unlock efficiency, security, and growth, visit
Hidden costs of not implementing Microsoft Dynamics 365.
