How Heirloom Implements the Three-System Solution — Graham Cunningham, CTO
This is for CIOs and CTOs at legacy-heavy institutions, banks, insurers, and public services, who need to modernize without compromising stability or security.
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Most modernization projects fail because they try to do everything at once. Companies attempt massive rewrites, betting their business on experimental approaches that promise to solve decades of technical debt overnight. The result? Code that runs but no one understands, bringing you back to square one, or worse, creating new vulnerabilities in mission-critical systems.
Heirloom Computing takes a staged approach to avoid that trap. We help you build resilient digital systems that last, using a proven two-stage process that delivers immediate value while preparing you for long-term success.
Consider what typically happens when a European bank decides to modernize its core banking system. The modernization team promises to replace 40 years of COBOL with modern Java in 18 months. Eighteen months later (if they are lucky), they have Java code that compiles and passes basic tests, but when business rules need updating, no one understands how the new system actually works. The original business logic, refined through decades of real-world use, has been lost in translation.
This happens because traditional approaches treat code translation as a purely technical problem. They convert syntax without preserving the business theories that make legacy systems work. The deeper knowledge about why the system was built the way it was, the accumulated wisdom about edge cases, regulatory requirements, and business rules, disappears.
At Heirloom Computing, we’ve built our entire approach around a key insight: you shouldn’t have to choose between safety and modernization. You need both, but at different times and for different reasons.
We combine…
– pattern recognition (Chimp)
– human logic reconstruction (Human)
– accumulated best practices (Computer)
…into one orchestrated system. Without this orchestration, pattern recognition produces superficial translations, logic reconstruction lacks context, and best practices remain isolated. Together, they preserve both the “what” and the “why” of your legacy systems.
Uses our battle-tested transpilers to replatform your legacy systems on the JVM. These aren’t experimental tools, they’re proven in production across dozens of enterprise deployments. Your COBOL runs on modern infrastructure immediately. Your PL/I integrates with contemporary tools. You’re off the mainframe, costs drop by 60-80%, and everything works exactly as before.
The specific risk we eliminate: You avoid the catastrophic failure mode where modernization projects consume millions of dollars and years of effort, only to produce systems that work differently from the original in subtle but business-critical ways.
For example, Venerable, a US annuities company used Stage 1 to shutdown its mainframe system in less than a year, reducing mainframe costs entirely and OpEx by 75% while maintaining full regulatory compliance. The system handled the same transaction volumes with identical business logic, but now ran on infrastructure their team could manage and scale with hardware vendor choices.
When you’re ready, when you have the time, budget, and strategic need, use our semiotic transpilers to refactor the code into idiomatic Java. This is where theory reconstruction happens. This is where you get code your teams can actually maintain, extend, and integrate with modern AI systems.
Our process reconstructs the business logic behind legacy code patterns, not just the syntax. A claims processing rule that took 200 lines of dense COBOL becomes 50 lines of clear, documented Java that new developers can understand and modify confidently.
Our translation process leverages three coordinated systems, each preventing the others’ failure modes:
Pattern Recognition (Chimp): The LLM quickly identifies obvious patterns and provides initial translation scaffolding. Controlled and supervised to prevent shallow conversions.
Logic Reconstruction (Human): The MCP server performs deep analysis, parsing business rules, data relationships, and integration requirements. Takes the time needed for thoughtful analysis.
Knowledge Database (Computer): The vector database stores successful translation patterns from previous projects, ensuring every customer benefits from accumulated institutional knowledge.
Without orchestration, pattern recognition produces code that compiles but doesn’t preserve business meaning. Logic reconstruction without accumulated knowledge repeats solved problems. Knowledge databases without fresh analysis become stale and miss context-specific requirements.
Our MCP server functions as an interpretant-building system, looking beyond code patterns to infer the business logic behind them. It constructs semantic models that capture not just what the code does, but why it does it.
When we encounter a payment validation routine in a German bank’s COBOL system, we don’t just convert the syntax. We identify that it implements specific EU regulatory requirements, handles currency conversion edge cases, and includes fraud detection logic developed over years of production use. The resulting Java preserves all of this institutional knowledge in maintainable, documented form.
The difference between replatforming and refactoring is the difference between immediate relief and long-term capability. Replatforming gets you off expensive mainframes right away, critical for budget planning and infrastructure management. Refactoring gives you code that your teams can actually work with over time, essential for innovation and AI integration.
Most legacy modernization projects fail because they try to do both simultaneously. Heirloom’s staged approach eliminates this risk.
Stage one delivers immediate value with proven technology. Stage two provides long-term capability with advanced methods. You don’t have to choose; you get both on your timeline.
Because you’re already running on our proven transpilers, you control the refactoring pace completely. Refactor customer-facing modules first for competitive advantage. Leave stable back-office systems for later. You manage both timeline and risk.
A European pensions company used our two-stage approach to modernize its pension calculation system. Stage 1 replatforming took 12 weeks and reduced operating costs by 80%. Over the following 3 months, they refactored the frontend of the system into idiomatic Java, reducing system complexity and enabling integration with modern analytics tools.
The measurable outcomes our customers achieve:
– Immediate cost reduction: 60-80% infrastructure savings within months
– Risk elimination: Zero business logic loss during translation
– Team efficiency: COBOL and PL/1 developers remained useful as SMEs
– Future readiness: Systems prepared for AI integration without security gaps
AI is part of the future, but to benefit from it fully, you need strong foundations. Legacy systems with undocumented business logic and hidden vulnerabilities become AI security risks. Modern systems with clear, maintainable code become AI opportunity platforms.
Heirloom has been solving this challenge since 2010, long before AI hype cycles. We’re not experimental. We’re established, proven, and built for the long term. While others ask you to bet your business on untested approaches, we deliver systems that work today and adapt tomorrow.
Because you’re already running on our proven transpilers, you control the refactoring pace completely. Refactor customer-facing modules first for competitive advantage. Leave stable back-office systems for later. You manage both timeline and risk.
While competitors struggle with syntax errors or ask you to risk everything on experimental translation, Heirloom delivers working systems that preserve decades of hard-won business knowledge. We’re not just building translation tools, we’re building understanding machines that help you maintain a competitive advantage while reducing technical risk.
The result? Java code that your teams can maintain, extend, and trust. Not just code that compiles, but code that makes business sense. In a world where digital resilience determines competitive advantage, that’s the foundation every enterprise needs.
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