Modernizing Legacy Systems in the Energy Sector

The All-Too-Familiar Legacy Challenge for Energy Companies

Legacy systems — those long-standing technologies that most energy companies still depend on — are a bit like a sturdy, old truck.

It’s been running reliably for years, has seen countless upgrades, and has more than earned its keep. But over time, the mileage starts to show. It lacks the latest tech under the hood and isn’t as efficient as newer models. Yet, replacing it entirely would be costly and disruptive.

For energy companies, the challenge is clear: how do you get that old truck — with all its trusted features — to perform in today’s world?

The answer lies in integration. Instead of scrapping legacy systems, companies can “upgrade the engine” through integration, using iPaaS (Integration Platform as a Service) to extend the life and usefulness of these systems without a full replacement.

iPaaS enables energy companies to link the old with the new: it lets you keep your current systems while enhancing your performance with modern tools.

This way, you can keep the strengths of what already works while adding new technology to make it faster, more secure, and more efficient for today’s needs.

Why Integration Matters: Avoiding the Legacy Trap

Older systems in energy companies — such as asset management, billing, or grid monitoring systems — can be costly to maintain and difficult to replace. Many companies still rely on these systems, which were often built decades ago and may not fully support today’s workflows.

One common issue is point-to-point integrations, where systems are directly connected in a way that lacks flexibility. This setup creates a fragile network where if one system fails or is updated, it impacts everything else.

"One common issue is point-to-point integrations, where systems are directly connected in a way that lacks flexibility. This setup creates a fragile network where if one system fails or is updated, it impacts everything else."

Integrating legacy systems with modern applications through an iPaaS offers several advantages: 

• Lower Costs

  By connecting old systems with new ones, companies can avoid the high costs of a full system replacement, extending the life of existing technology while meeting current demands.
  
  

• Reduced Tech Debt

  Point-to-point connections often lead to a complex web of systems that are hard to maintain. This tangled setup creates “tech debt” that becomes costlier to address over time. An iPaaS provides a cleaner, more manageable integration framework that simplifies the entire network.
  
  

• Extended System Lifetime

  One of the key benefits of using an integration platform is that it extends the useful life of legacy systems. Rather than fully replacing older systems, iPaaS enables companies to integrate them with modern applications, effectively “refreshing” their capabilities. This approach allows legacy systems to handle current demands and adapt to new workflows without disruption.
  
  

Without integration, energy companies risk falling behind as technology advances. But what’s the best approach to modernizing legacy systems in the energy sector?

How iPaaS Helps Modernize Energy Legacy Systems

For energy companies, integrating legacy systems with modern applications is not just about “connecting the dots” — it’s about creating a flexible, scalable, and secure network that supports the business needs. iPaaS (Integration Platform as a Service) solutions like Frends offer a powerful, flexible approach to bridging the gap between older, standalone systems and today’s technology stack.

What is iPaaS, and why is it so beneficial for energy companies?

At its core, iPaaS acts as a middleware layer, sitting between your legacy systems and new applications. It standardizes and translates data between different systems, ensuring smooth data flow across the entire organization.

Unlike traditional point-to-point integration methods, which can create a fragile web of interdependencies, iPaaS provides a unified, centralized hub for all integrations. While this might sound complicated, it essentially means that you can run all your integrations from one platform and not worry about integrations breaking down when you make a change.

1. Connect all systems, old or new, on one platform

iPaaS solutions unify all integrations within a single platform, enabling centralized management, monitoring, and maintenance.

Rather than juggling multiple custom-built integrations or third-party connectors, IT teams can manage everything from one interface.

This way, you'll reduce the risk of errors, simplify troubleshooting, and allow your team to gain real-time visibility into data flows across systems, which is particularly valuable in sectors like energy, where uptime and reliability are critical.

2. Integrate fast with low-code development

Traditional integrations often require coding and technical expertise, which can lead to long development cycles and high maintenance costs.

With an iPaaS, you can use a low-code or even no-code environment, allowing IT teams to create, modify, and manage integrations through a visual interface with minimal coding.

3. Automate repetitive Energy-processes

One of the standout features of integration platforms is their ability to automate routine data transfers, synchronizations, and system updates.

In energy companies, where data from meters, grids, customer portals, and compliance systems needs to be updated frequently, iPaaS can automate these processes to ensure data consistency and accuracy without manual intervention.

4. Add, expand, or modify workflows with the flexible architecture of iPaaS

As energy companies grow and adapt to new market demands — such as renewable energy tracking or smart grid data management — iPaaS offers the scalability needed to support these changes.

The flexible architecture of integration platforms allows for the easy addition of new integrations, making it easy to expand or modify workflows without disrupting existing operations. Whether you’re integrating new IoT devices, adding data sources, or expanding to new regions, integration platforms like Frends will scale.

5. Strengthen security with location-specific data processing

Security is key in the energy sector, where data breaches or operational disruptions not only upset your boss but can also have serious consequences.

iPaaS solutions like Frends use robust security features to ensure data integrity across integrations.

For example, with local integration agents, Frends enables data processing within specific geographic locations, which can help meet GDPR requirements or local data regulations. By centralizing and securing integrations, iPaaS helps energy companies maintain compliance while protecting critical data.

6. Process data in real-time

Energy companies often require real-time data processing to support operations like grid management, demand response, and customer billing.

iPaaS solutions are designed to handle real-time data synchronization, ensuring that data flows consistently between systems without delays. With iPaaS, energy companies can monitor and adjust their operations in real time, providing faster response times and improved decision-making capabilities.

7. Easily create, manage, and monitor APIs

APIs (Application Programming Interfaces) are crucial for enabling communication between any systems.

An iPaaS solution like Frends simplifies API management, allowing energy companies to create, monitor, and control APIs as part of their integration strategy. With built-in API management, iPaaS can help streamline customer and partner integrations, reduce network traffic, and enhance data security.

This means that even legacy systems can expose data and services as APIs, allowing them to work with newer applications.

8. Reduce your “technical debt”

Point-to-point integrations, while sometimes necessary for quick fixes, often lead to “technical debt” — the cumulative cost of managing outdated code.

By bringing all integrations onto one platform, iPaaS makes it easy for IT teams to keep systems up-to-date without dealing with a web of complex connections. This approach reduces maintenance costs and creates a stronger, more reliable IT setup.

By acting as a bridge between old and new, iPaaS solutions like Frends iPaaS helps energy companies improve performance, enhance security, and stay agile.

Real-Life Stories: Integrating Legacy Systems with Modern Applications

Eltel Networks uses Frends iPaaS to simplify IT operations across multiple regions. With the unified integration platform, they've reduced IT maintenance costs by 35% and cut development expenses by 30%.

With Frends managing 1.5 million work orders monthly, Eltel's IT team’s engagement has also increased.

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→ Sandviken Energi Speeds Up Operations with Frends iPaaS

Sandviken Energi improved process speeds by 179 times using Frends iPaaS, which has enabled faster and more secure data exchanges.

With a unified integration platform, Sandviken Energi speeds up data exchanges, ensures compliance with GDPR, and can use a local server infrastructure for added security.

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→ St1 Reduces Network Traffic and Improves Data Security

St1 saw a 50% reduction in unnecessary network traffic after unifying its API architecture with Frends iPaaS. This unified approach also lowered costs, made system updates more manageable, and improved data security. Now, St1 manages over 3 million API calls monthly with ease.

These cases show that, with the right iPaaS, energy companies can modernize effectively, improving operations, security, and cost-efficiency without needing to overhaul their entire systems.

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Full Replacement or Gradual Modernization?

If you’re wondering whether to replace outdated systems completely or integrate them with new tools, here are a few considerations to keep in mind.

1. System Stability

If your legacy systems are still stable and meeting most operational needs, iPaaS integration is often the best solution. This approach allows you to keep core systems while gradually adding modern functionalities without disrupting your operations.

2. Cost Constraints

Full replacements are not only expensive but also time-consuming. If budgets are tight, using iPaaS to gradually modernize your current systems is a cost-effective way to improve efficiency and add new capabilities.

3. Flexibility Needs

If your company is expanding or adapting to new regulations and market demands, integration offers the flexibility to add new features without waiting for a complete overhaul.

4. Technical Debt

If maintaining legacy systems is creating ongoing issues or costs due to outdated integrations, an iPaaS can serve as a bridge, allowing you to modernize gradually without a costly system replacement.

For many energy companies, integration is the smarter first step. It allows for modernization at a manageable pace, adding new capabilities without a total infrastructure overhaul. However, if systems are failing or no longer meet key needs, a full replacement might be necessary.

Next Steps for Legacy Modernization in Energy

If your energy company is facing the challenge of outdated technology but isn’t ready for a complete overhaul, integration through an iPaaS solution like Frends can help.

Here's how to get started:

• Audit your systems: Identify essential legacy systems and those that can be phased out.
• Select an integration platform for energy-specific needs: Look for a platform that’s easy to use, scalable, and includes automation capabilities.
• Start small: Begin with one integration project, then expand to more complex systems.

With the right strategy, your energy company can stay competitive by embracing digital transformation while keeping the best parts of existing systems.