Business + IT Insights

Why Outdated Technology Increases Cost and Decreases Productivity

Posted by Dave Lazor on Thu, Apr 17, 2014


477257185Often times, it’s difficult to justify a new technological investment. But sometimes, a new technological investment is just what you need for future business success. A Microsoft study concluded that more than 90% of consumers would consider taking their business elsewhere rather than work with a company that used outdated technology (dial-up internet, Windows 98, etc.) If you’re using outdated technology, here is the reality you currently face:

  • 68% of consumers think the use of modern technology is critical to the success of a business.
  • 57% of consumers agree that small businesses that use modern technology are more competitive in the marketplace.
  • 61% of consumers think an SMB is outdated if the company is still using a 5-10 year old operating system.

Along with aging your overall company image, older technology hosts a variety of long-term cost issues.

The Main Costs Behind Outdated Technology

  • Data Security: The older your software, the riskier it is to use. Older software was not designed to be resilient against attacks, so strong data security is an absolute (and expensive) essential.
  • Migration/Installation: Many companies don’t have processes in place for retiring out-modeled software, so they essentially start from scratch with extensive migration and installation services.
  • Data Loss: Some IT problems stem from integrating different software applications. When one application is outdated, and the other is updated, they don’t communicate properly with one another. This leads to potential data loss as well as potential revenue loss.

The Costs of NOT Upgrading

Older software becomes an expensive problem when the developer has created several upgrades but the company refuses to purchase the upgrades. Microsoft has recently stopped supporting Windows XP because of their numerous upgrades since XP (the latest version is 8.1.) Now, any Windows version below 7 is completely vulnerable to viruses.

It may seem like a ploy to get more money, but software developers expect you to upgrade because with each new version, they offer more functionality for your business to utilize.

The Effect of Outdated Technology on Employees

Employees today are increasingly abandoning their issued work computers in favor of using their own, personal devices for work. The reason? Their company’s technology has become more of a hindrance than a helpful business tool, and they find modern technologies out-perform and offer higher functionality than the older software and/or hardware. (Imagine if you were a graphic designer using “Paint” instead of Photoshop…any job would be more difficult without the right tools to get things done.)

If your employees spend too much time with a faulty network connection, or if they can’t access information without putting in a ticket to the IT team, then your technology is inflicting on daily finances and productivity.

Despite your many efforts to maintain a reasonable IT budget, outdated technology is most likely getting the best of you. The worst part? You may not even know – it’s difficult to pick up on the long-term damage of older software. Play it safe, and keep your system safe from viruses, by investing in the long-term benefits of upgraded technology.

To learn more about how Lazorpoint designs innovative technology solutions customized for your business growth and flexibility, click the button below.

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Tags: business technology, IT budget, IT team

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