Today’s businesses are operating in a highly competitive market, and because of this, companies are constantly seeking ways to reduce their operational expenses, improve their return on investment, and maintain a sound bottom line. To achieve these aims, businesses often hang onto hardware for longer than they should, in a bid to save money, without realising this tactic ends up costing way more than they realise.
Understandably for small and medium-sized businesses, investing in new IT hardware is a big decision. Technology costs can quickly pile up, not just the initial investment, but the monitoring, maintenance, support and security investments as well.
However, after a few years, whether you notice it or not, your information technology hardware no longer works optimally. Keeping older hardware running may seem financially savvy, but you may be setting yourself up for big future expenses.
Let’s take a look at some of these hidden costs that come with when you run legacy hardware past its prime:
The cost of productivity
The older your technology gets, the less efficient it becomes. Older hardware tends to lag, and devices wear out with age and use. This leads to slower processes, forcing employees to waste time waiting for systems to keep up. The problem is further exacerbated because legacy systems struggle to run multiple applications at the same time, leading to processors, memory, disk drives and operating systems being more outdated for new software. Aging technology negatively impacts your team’s ability to complete their duties, leading to a significant amount of time and money being lost throughout the entire organisation.
Increased maintenance and support costs
A Techaisle study discovered that more than a third of businesses were still using computers that were at least four years old, and small businesses incurred ‘stealth’ expenses of around $1,500 annually, which often exceeded the price of a new, faster, and more reliable computer.
Retaining old hardware will cause your business to spend more on maintenance and support than the cost of replacement. Many businesses find their operating systems are no longer supported, and either need to pay for extended support or upgrade, which can be problematic if your hardware can’t support a new OS.
Many organisations are becoming increasingly more conscious of their impact on the environment, which can be a challenge when it comes to updating hardware and IT infrastructure. With the awareness that information technology affects the environment throughout its entire lifecycle, making the right choices when upgrading hardware can help businesses successfully reach their sustainability goals.
Today when businesses don’t update their hardware and technology, it can increase the risk of security vulnerabilities, which can lead to damaging and seriously costly cyber-attacks. Cost savings in not upgrading hardware will eventually be lost, as cybercriminals find legacy hardware and software easy targets for attacking businesses.
According to the Australian Cyber Security Centre, the average cost of cyber-crimes for an Australian company is $276,000, with around 60% of cyber breaches occurring in small to medium-sized enterprises. These costs include lost revenue, and recovery costs, including legal and regulatory fines. Customers want to know that their (and potentially other people’s) information is secure. Your data probably isn’t secure if you’ve still got old technology. According to one Microsoft poll, 91% of people would end their relationship with a company if it relied on obsolete technology, putting their data at risk.
Upgrades are challenging to implement on older hardware and software. In addition, hardware and software companies often no longer support upgrades after a certain period of time. This was the case with computers affected by the WannaCry ransomware attacks. The WannaCry ransomware targeted computers running old Windows software—essentially, those running software older than Windows 7.
IT hardware upgrades with the experts
Your IT hardware is the lifeblood of your business. Unexpected downtime, costly repairs, and lost revenue will cost you more in the long term and keeps you from focusing on running your business. It is never too late to take stock of your current IT infrastructure.
Before taking the leap and investing in new technology, it can be wise to seek the support services of a managed service provider (MSP) who can help you make smart decisions about what technology your company needs. Your MSP can analyse your existing systems, including operating costs versus maintenance costs, so you can make an informed choice about your IT resources.
The IT consultants at Virtu are experts in helping companies improve their business efficiencies, leverage new technology, and work towards cost reduction over time. Virtue is committed to making a positive on businesses and the environment by delivering technology, services, and solutions to customers that is not only of the highest quality, but support a more sustainable future. Talk to your trusted IT advisors at Virtu today.