Risks of Using Outdated Technology
Updated on: February 05, 2020
If it’s not broke, don’t fix it, right? Wrong! In many cases, this is great advice, but not for running a business. Nothing lasts forever, especially technology. Running a business off of old computers, servers, and software is not a wise choice. Eventually, those pieces of equipment will reach the end of their lives and you don’t want to wait until they crash and fail to upgrade to something new and reliable. Outdated technology is dangerous for a number of reasons and each of them has the potential to harm your business.
Running on old, legacy technology is like running on an old car that leaks gas. Yeah, it still gets you there and you may be able to put on a quick fix here and there, but at the end of the day, you’ll still have a leaking car, or in this case, slow and vulnerable equipment.
Or to keep the analogy going, how many times will you spend money to “fix it” before you end up buying a new car. With all the money you spent on quick fixes you could’ve just solved your problem from the start. That’s because many people believe new technology to be costly, yet outdated tech dramatically increases your costs. (Don’t believe me? See ‘Increased Costs’ below.)
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Risks of Using Outdated Technology
It can be true that installing new equipment and software can be costly or a pain in the neck, but that’s without the right help or plan in place. Fortunately, with the help of an MSP, like Omega Computer Services, you get new technology every three years and they do all the heavy lifting by installing it for you.
So, what are these risks, right? How bad can they be? Let’s take a look at some of the risks of using outdated technology below.
Check it out: The Risky Business of Outdated Technology (Infographic)
1. Increased Costs
The last thing you want as a business owner is to waste money. As an upfront cost it may seem like you are, but the benefits will always outweigh the risks when it comes to updated technology.
Most SMBs agree that the top two reasons they do not upgrade their systems, ironically, are because of time and money. Realistically, they are throwing away more money and wasting more time. As older systems have a much higher failure rate, causing higher I.T. expenses for recovery and data restoration. Older technology is also much less energy efficient and requires more power than newer tech. Therefore, you can expect a higher electric bill. With an MSP, the financial burden of a large capital investment will be taken off your shoulders as the cost of hardware and technology refreshes are included in the service. In turn, your employees will be more satisfied at work resulting in a lower turnover rate. So, you’ll be able to spend less money and resources on recruitment and training.
Still don’t believe me? Check out these stats:
I.T. costs nearly double to fix a system that is older than four years. That’s even if they can fix it!
Among small businesses with 50-99 employees, the average cost of repairing PCs 4 years old or older is US$521 per year
Cost to support standard PC running Windows XP per year – $780
Cost to support standard PC running Windows 8 per year – $168
Cost to support Windows Server 2003 per year – $200,000
2. Lack Competition
This is business and your competition will do anything they can to be better than you. Why hold yourself back with old technology while they revel in the spoils of updated equipment? Using updated technology and software gives you a competitive advantage. Legacy tech doesn’t allow you this type of advantage. Updated technology allows your business to communicate efficiently, land more deals, develop stronger relationships with customers, and work remotely.
Did you know:
49% of business owners ave said new technology helps them punch above their weight and compete with larger organizations (Abacus Next).
90% of consumers would consider taking their business elsewhere rather than work with a company using outdated technology (Microsoft).
3. Decreased Productivity
Do rainbow wheels and hourglasses appear too often on your screen? Your software and running programs may be out of date and slowing down. The time you spend waiting on those icons to disappear, so you can continue working, is probably more than you think when you add the minutes. Do you have hundreds of files all over your computer storage with no clear organization? This makes it more difficult to search for the exact files you need. Without proper search and organization programs, you’ll lose an unnecessary amount of valuable work time. Updated technology makes it easier for employees to store and locate information as well as streamline their workflow.
Stop wasting time with slow tech:
53% of survey respondents said that they would be more productive if their office had better technology.
Computers 4+ years and older cost 21 hours of productive time a year because of repairs, updates, maintenance, and security fixes (Why Meridan).
4. Lack of Flexibility
Face it, old technology just can’t perform like new technology can. This disadvantage limits your business’s flexibility in various areas including data analysis, which helps businesses make better decisions moving forward, as well as communication and collaboration with the team. New and updated software will allow your business to keep on track with analytics, giving you a better idea of how employees and the business are performing. Not to mention old and new technology do not bode well together, so forget mobile capabilities. And without mobile you’ll fall even farther behind your competiton.
Face it, your legacy equipment just isn’t cutting it anymore.
66% of small business owners rely on mobile devices to manage operations
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5. Security
Outdated legacy systems are at a higher risk for security concerns. Most companies attempt to remedy this problem with constant security updates for at-risk software. Eventually, once an old system is no longer supported, it won’t be able to receive the patches and updates (HINT HINT Windows 7!). Disaster recovery and backup solutions begin to pile up and become bigger obstacles when your system can no longer support it. When your data security becomes at risk due to failing equipment and systems, it’s time to refresh your technology.
Here’s what you’re up against:
A business falls victim to a ransomware attack every 13.275 seconds (Cyber Defense Magazine).
43% of cyber attacks target small businesses and only 14% are prepared to defend themselves (Small Business Trends).
6. Compliance Requirements
Many companies working in certain industries are under very strict compliance requirements. Businesses need to be meet certain standards such as HIPAA, which requires your technology to be supported. If your technology is not supported and cannot comply with the set requirements, you may face the consequences in the shape of fees and penalties that come from data breaches and hacks that your business is much more prone to when there are holes in your systems.
Check out our guide for more risks on the use of outdated technology in the workplace. Along with the above topics covered more in-depth.
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