Ximedes Blog

The Hidden Cost of Legacy Software in Public Transport

Written by John-Peter Veldkamp | 10/02/2026

When public transport organisations evaluate their IT landscape, cost is often the starting point. Licenses, maintenance contracts, infrastructure - these numbers are visible, measurable, and easy to put on a spreadsheet. But what about the costs that don’t show up on the invoice?

Legacy software systems, often deeply embedded in daily operations, carry a Total Cost of Ownership (TCO) that extends far beyond the initial investment and yearly support fees. In public transport, where reliability, scalability, and passenger trust are critical, these hidden costs can quietly erode efficiency, innovation, and resilience.

 

Legacy Systems: Stable, but at What Price?

Many public transport operators (PTOs) rely on software systems designed years, and sometimes decades, ago. These often proprietary systems often still “work,” which makes replacement or modernisation seem risky or unnecessary. However, surface stability can mask underlying structural problems.

Legacy systems typically struggle to adapt to today’s demands: real-time data, flexible ticketing models, integration with new hardware, regulatory changes, and rising passenger expectations. Each workaround, manual process, or custom patch adds friction and cost. And quite often, the PTO's priority does not align with the supplier's timing, roadmap, or priorities. 

 

The Real Components of Total Cost of Ownership

The true TCO of outdated software rarely ends with maintenance fees. It includes:

  • Operational Inefficiency
    Manual interventions, duplicated data entry, and disconnected systems slow down operations and increase the likelihood of errors, especially during disruptions.
  • Integration Complexity
    Public transport IT landscapes are inherently heterogeneous: ticketing systems, ITCS, fleet management, validators, inspection tools, and background systems must all work together. Legacy software often lacks modern APIs or modular design, making integrations expensive, brittle, or even impossible.

  • Limited Scalability
    New mobility services, account-based ticketing, cEMV, D-Ticket, or data-driven passenger services require systems that can evolve. Legacy platforms frequently become bottlenecks rather than enablers.

  • Innovation Debt
    Every year spent maintaining outdated software is a year not spent improving passenger experience, operational intelligence, or sustainability goals. Over time, this innovation gap becomes costly to close.

  • Risk Exposure
    Ageing technology increases security risks, compliance challenges, and dependency on scarce technical expertise, often locked to specific vendors or individuals.


Why Public Transport Needs a Different Approach

Unlike off-the-shelf enterprise software, public transport systems operate in complex, real-world environments with long lifecycles and strict availability requirements. A “rip-and-replace” strategy is rarely feasible.

This is where a modular, custom-built software approach (“Composable commerce”) becomes critical.

At Ximedes, we design, build, and support such tailor-made software solutions specifically for public transport organisations. We understand that PTOs operate with a wide variety of existing systems and that change must be incremental, controlled, and aligned with operational reality.

Our composable software components are designed to integrate seamlessly into existing IT landscapes, adapt to specific operational needs, and grow as those needs evolve. At the same time, they provide valuable data-driven insights that help organisations improve decision-making and efficiency.

Our competencies span ready-made solutions as well as the conception and development of custom software, including integration with hardware, ticketing systems, ITCS, fleet management, inspection systems, validators, background systems, and barcode-based solutions.

 

Reducing TCO Without Disrupting Operations

Lowering TCO doesn’t necessarily mean replacing everything. In many cases, the most effective strategy is targeted modernisation:

  • Replacing fragile custom interfaces with robust integrations
  • Introducing new functionality through modular services
  • Gradually migrating critical components while keeping operations stable
  • Using data insights to improve efficiency and passenger experience

This approach reduces risk while delivering tangible value early, both financially and operationally.

 

From Cost Centre to Strategic Asset

Software should not be a passive cost centre. In modern public transport, it is a strategic asset that enables resilience, transparency, and innovation.

By reassessing the true TCO (Total Cost of Ownership) of legacy systems and by investing in adaptable, future-proof software, public transport operators can shift focus from maintaining the past to shaping what comes next.

 

In summary

Legacy software in public transport may appear cost-effective on paper, but its real Total Cost of Ownership often tells a different story. Hidden inefficiencies, integration challenges, limited scalability, and growing innovation debt steadily increase costs and risk over time. For public transport operators, the challenge is not whether to modernise, but how to do so without disrupting daily operations.

Ximedes helps public transport organisations bring TCO down in a pragmatic and sustainable way. By delivering modular, tailor-made software solutions that integrate seamlessly with existing systems, we reduce long-term operational costs, limit vendor lock-in, and create room for innovation. Our approach turns software from a constraint into a strategic enabler, one that grows with your organisation and supports reliable, future-ready public transport.

Because in public transport, the most expensive system isn’t always the one you buy, it’s the one that quietly holds you back.