Office technology remains a necessary component in the operations of businesses in any given industry. Companies that think they are saving money by not upgrading their old hardware or software should think twice. Relying on legacy or old, outdated tech negatively impacts businesses in many ways. Not to mention, hanging on to obsolete tech has the high potential to cost them a pretty penny in the long run. Here are four significant reasons why.
Outdated technology leads to risky circumstances because it puts business data in a precarious situation, especially considering legacy systems are typically no longer supported by manufacturers for patches or other security updates. These security weaknesses can be exploited by cybercriminals, placing data at a much higher risk of breach. Aging hardware and software not only put an individual system at risk, but it can also make an entire network susceptible to hacks, ransomware, or other exploits.
Newer technology is far less susceptible to cybersecurity vulnerabilities because they support security measures such as authentication and encryption. Security is one area of business no organization should take lightly because one major breach can result in huge financial loss. For regulated industries, the risks and penalties associated with a lack of due diligence when it comes to cybersecurity can be even more severe.
New software and hardware usually boost productivity and efficiency due to easy-to-use interfaces and streamlined processes. It also tends to experience a lot less downtime. On the other hand, old tech runs slower, is prone to glitches, and breaks down more frequently. Automation has come a long way, freeing up employees’ time to place more focus on a business’s core competencies, while those working with obsolete tech are taken away from important tasks. According to a survey conducted by Samanage, organizations have lost a whopping $1.8 trillion in wasted productivity due to outdated tech. This places companies relying on legacy tech at a competitive disadvantage.
Due to the propensity of old hardware breaking down or outdated software glitching and freezing, continuous money has to be invested in IT support and repairs. This expense can be mostly eliminated when the tech is current, and put towards new purchases. Additionally, since newer tech is generally designed to be user-friendly and compatible with other systems, it’s easier—and cheaper—to integrate when linking internally or to client systems. There is also the consideration that legacy systems often don’t “play nice” with more modern tech and, over time, it becomes harder to find someone with the skills to configure, maintain, or repair them.
Companies that rely on old tech risk losing customers.Surveys over the past several years have found a significant percentage of consumers won’t do business with a company that uses outdated technology. These consumers cite as reasons these companies being unable to process orders quickly enough or they feel their personal information is at risk. All it takes is one major data breach to sour a company’s reputation, which means lost profits. Small- and medium-sized companies are more at risk because many of them cannot afford to weather out the storm associated with a breach, unlike their corporate counterparts.
Technology is costly, no doubt about it, but it’s a necessity to not only compete but survive in competitive markets. According to the latest figures, 89 percent of companies expect their IT budgets to either expand or stay the same over the next year. Those planning upgrades are doing so with the intention to support digital transformations and replace aging IT infrastructures are taking this initiative with the above factors in mind.
Fortunately, there are many cost-efficient and scalable options available today. If you are interested in upgrading your office technology, contact Verticomm today!