COBOL in 2023: Is This Legacy Language Still Relevant Today?

COBOL, or Common Business-Oriented Language, is a programming language that has been in use since the 1950s. Despite its age, COBOL remains a significant part of modern technology infrastructures, especially in sectors like finance, insurance, government, and healthcare. This article explores the reasons for COBOL's continued relevance and its common use cases in today's digital landscape.

Why COBOL Remains in Use

COBOL is still used extensively in legacy systems, even though many new systems are being built using more modern programming languages. Here are some of the key reasons for its ongoing relevance:

1. Legacy Systems

Large organizations have invested heavily in COBOL-based systems over several decades. Completely replacing these systems would be extremely costly and risky. Therefore, many organizations continue to maintain and update these systems to ensure they remain functional and reliable.

2. Stability and Reliability

COBOL is renowned for its stability and reliability. Systems built using COBOL have been running effectively for decades, and there is a reluctance to change something that is known to work well. This reliability makes COBOL a preferred choice for critical systems that need uninterrupted performance.

3. Deep Integration

COBOL systems are often deeply integrated into an organization's infrastructure, making it challenging to migrate to new systems without significant effort and resources. The tight integration of COBOL with other systems and processes creates a dependency that is not easily broken.

4. Domain Knowledge

Many of the developers who originally worked on COBOL systems have retired or moved on, but there are still professionals with extensive experience in COBOL. This domain-specific knowledge is invaluable for maintaining and updating existing systems. These experts not only understand the legacy codebase but can also predict potential issues and issues that may arise during updates or migrations.

5. Regulatory Compliance

Industries such as finance and healthcare are subject to strict regulations that govern software systems. Changing these systems can introduce compliance risks. Organizations prefer to stick with what is known and compliant rather than risk introducing new vulnerabilities.

6. Cost of Migration

Migrating away from COBOL can be extremely expensive and time-consuming. This involves not only rewriting the code but also extensive testing, retraining staff, and potentially disrupting business operations during the transition period. The cost savings associated with maintaining COBOL systems rather than migrating to new ones can be substantial.

Common Use Cases for COBOL

COBOL is particularly prevalent in sectors where high reliability and stability are critical. Some of the most common use cases for COBOL include:

Finance

Many banking and financial institutions still rely on COBOL to handle various tasks such as transaction processing, account management, and other core financial operations. COBOL's ability to handle large volumes of data efficiently and reliably makes it a suitable choice for these critical applications.

Insurance

Insurance companies use COBOL for policy management, claims processing, and other critical business processes. These systems are often deeply integrated into the insurance ecosystem, and replacing them would be complex and risky.

Government

Government agencies, particularly those dealing with taxation, social security, and other large-scale programs, often use COBOL for their software. COBOL's ability to handle complex calculations and maintain stability is crucial for these government systems.

Healthcare

COBOL is also prevalent in healthcare systems for managing patient records, billing, and other administrative tasks. The reliability of COBOL in handling sensitive data and performing complex calculations makes it a preferred choice in this sector.

Conclusion

While newer languages are more commonly taught and used in new software development projects, COBOL remains an important part of the technology landscape. Its entrenched position in many institutions ensures that it will continue to be used in legacy systems for the foreseeable future. The reasons for its continued relevance, including legacy systems, stability, deep integration, domain knowledge, regulatory compliance, and cost of migration, make it a valuable and necessary component of modern technology infrastructure.

Keywords: COBOL, legacy systems, financial systems