Just because something is old or outdated does not always mean it is not functional. In fact, many older technologies still work perfectly well today. Nevertheless, using outdated technology can have a significant impact on your bottom line. Regrettably, many business owners choose to put off upgrading their technology, holding on to aging hardware, software, and peripherals for far longer than they should, not realizing that this is actually costing them more than they think they are saving.
THE TRUE COST OF USING OUTDATED TECHNOLOGY
Engagement and Retention: When outdated technology becomes ineffectual it can take a toll on your team’s morale and engagement. Not being able to effectively meet job expectations or expending large amounts of energy finding workarounds, causes employees to become frustrated or disengaged. By not providing suitable technology, you are sending a clear message to your team about how much you value them and their work.
Efficiency and Productivity: As tech ages, it runs more slowly, freezes often, and requires more maintenance, resulting in downtime. Battling constant hardware and software issues or waiting added seconds or even minutes to load programs will influence employee productivity and efficiency. Staff may find themselves spending more time navigating simple administrative tasks than they do with other more valuable obligations. A 2016 survey found that U.S. businesses lose up to $1.8 billion each year in wasted productivity due to obsolete technology (that number has surely increased in 2021).
Competitive Edge: Outdated tech will make it increasingly difficult to compete with those who are taking advantage of the latest trends and technology advancements. Using patched together solutions, or workarounds limit your ability to successfully respond to the changes in the market. Microsoft conducted a study and established that more than 90% of consumers would consider taking their business elsewhere rather than work with a company that used outdated technology? 57% of consumers agree that businesses that use modern technology are more competitive in the marketplace. 68% of consumers think the use of modern technology is critical to the success of a business.
Data Loss and Security: Updates to hardware and software applications are crucial to the security of your network. Using outdated software will leave you vulnerable to cyberattacks and put you at risk for data breaches or ransom attacks. From a security perspective, businesses that cut corners on updating technology stand to lose a lot more than they gain.
Upgrading and Licensing: Not replacing or upgrading software as recommended by the vendor will put you at risk of it becoming unsupported (or end of life). When the time finally comes to upgrade to a new operating system, you will then be forced to have to upgrade to the newest version and you will end up paying much more than vs. upgrading all along. In addition to the cost of the upgraded licensing, you may also incur migration and installation costs.
Develop a strategic technology roadmap that incorporates the technology that you have in place today, and the schedule for reliable & consistent upgrades and maintenance. This outline will assist your monthly, annual, and multi-year technology budgeting.
Enlist the help of a managed service provider, like Braver, and get expert guidance on where you can maximize your spending or help you find new technology like Cloud solutions, eliminating many of the concerns businesses may have to keep their equipment updated. Cloud solutions eliminate a considerable amount of hardware needed to run your network.
Talk to your accountant, as technology is no longer considered a capital expense. Instead, it becomes an operating expense and, in many cases, results in a 100% annual tax write-off. There are even companies that offer to finance equipment or leasing options.
Knowing exactly when and how your future technology upgrades will take place is an important piece of solving concerns before they affect your bottom line. Effectively managing cash flow is essential for the overall health of a company, but technology is one area that should never be overlooked.
Every day, your business depends on information technology (IT) to operate. Thank you for letting us be there for you. Braver Technology Solutions | WeMakeITWork@BraverTechnology.com
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