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Business + IT Insights

Understanding the Hidden Costs of Outdated Technology

Posted by Dave Lazor on Tue, Nov 24, 2020

Outdated Technology

Which of these situations describes you:

  1. You’ve got legacy systems
  2. Your computers were purchased sometime in the early 2000’s
  3. Your CRM is a mess
  4. All of the Above

If any one of these applies to you, your team is probably frustrated because the tools or applications are currently getting in the way of them getting the job done.

If you’re reading this, you’re likely budgeting for next year and you’re struggling to justify a new technology. But sometimes, that is just what you need for future business success. 

Did you know that 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more than 90% of consumers would consider taking their business elsewhere rather than work with a company that used outdated technology? If you’re using outdated technology, here is the reality you currently face: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.

Additionally, your team is aware of systems that would help them work better. In fact, 73% of people surveyed say they know of systems that would help them produce higher quality work. 

The bottom line is: dated technology saddles your company with a host of long-term issues, technologically and culturally, in addition to affecting your overall company image.

The Main Costs Behind Outdated Technology

Data Security: Software is updated not just for functionality but security. By using outdated software you leave your company open to cyber-attacks. 

Migration/Installation: If you don’t have processes in place to retire out-of-date software and hardware you’ll end up having to pay for large software purchases and migrations all at once. In addition to the cost of the devices or software, you will have large migration and installation costs.  

Data Loss: If your backup solution is out of date, and the systems that they help keep secure were to fail, then you have a much higher chance of losing data. Any data loss is not good, but a loss of customer or sales data could directly and immediately affect your bottom line.

Team Efficacy: Your team wants to do their jobs well, but outdated technology holds them back. It can limit productivity and lead to frustration. Eventually, if it’s bad enough, it can affect your team’s morale.  

Cost of Support: If your team can’t access information without putting in a support ticket, or your IT is breaking often, then it increases the cost of supporting your technology.

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 dated technology. 

Why Many Businesses Delay Updating Their Technology

The truth is, there are a lot of reasons why businesses don’t update their technology regularly. 

Here are some regular objections we’ve heard:

  • The current system still works – if it isn’t broken, don’t fix it. 
  • You don’t know what the best solutions are to solve your business’s unique needs so it’s easier to keep things status quo.
  • Your team is working to their max and the transition to a new way of doing things is too difficult for them to handle right now.
  • Your internal IT team is focused on keeping your IT running so they don't have the time to devote towards building new solutions.

There’s an easy solution though. 

The Solution

Develop a strategic IT roadmap. An IT roadmap will help you plan for your monthly, annual, and multi-year technology costs by incorporating the lifecycle of your technology, your growth, optimization, and transformation goals. 

To learn more about how Lazorpoint helps companies plan for and manage their IT costs through developing and implementing IT roadmaps that are customized to each business, talk to a Lazorpoint IT expert today.

Tags: business technology, IT Budget, IT Team

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