Currently bleeding money due to using outdated technology? A staggering 82% of companies failed to meet their cost-reduction targets last year, with an inefficient technology infrastructure being the primary culprit, according to a recent survey by Deloitte.
Challenges with a business’s technology infrastructure is a huge barrier for organizations seeking to improve margins by cutting costs. A 2024 poll of nearly 300 business leaders on business margin improvement and technology transformation revealed these findings.
What does this tell us? Businesses need to adopt new, automated, AI-powered ways of doing business to save money and improve efficiency, but, are held back by outdated technology.
Why Should Businesses Upgrade Their Technology?
Legacy systems – defined as technology at least 10 years old – can quickly become quite expensive to maintain. Processing is slower and needs constant updating and patching to try and match newer, faster technologies with fresher features. As a result, businesses struggle to keep up with their tech-savvy competitors in every area of the organization, from scaling and cloud usage to human resources and customer service operations.
But that’s not the only issue. A larger, much more dangerous issue is that outdated technology increases your risk of cyber-attacks. Older technology simply cannot keep up with the rapidly changing world of cybersecurity. As newer threats emerge, older technology falls prey because it is incapable of keeping up with the latest updates required to keep your network secure.
So, with all the evidence pointing to “newer technology is better”, why do business owners put off updating technology?
A large reason is sticker shock.
Seeing the price of updating technology infrastructure can feel overwhelming, especially when a business has numerous other expenses. Smart business leaders run through risk-related questions like “What if something breaks?” or “What if it doesn’t work like they say it will?” Data supports, though, that maintaining old technology could be more costly. A separate 2023 Deloitte study of CIOs found that businesses spent an average of 55% of their technology budget on maintaining their existing systems. (Yikes!)
There’s also the cost of switching.
What will bringing systems down and transitioning to a new system cost? What about the cost of training employees to use the new software? These are all questions your IT team can help you answer BEFORE you start upgrading your technology. An experienced IT provider will help you analyze your system to see what needs to be updated and when, and map out a plan to upgrade your system in the most efficient way possible. It’s easier than you think and it pays off in increased productivity and profitability.
Ready To Upgrade?
If you’re looking to upgrade your technology or are just tired of slow, outdated technology, schedule a consultation with Atlantic Technology Services, a Managed Services Provider (MSP), to see what your next steps could look like. Our experts will dig into your system and processes and determine what technology needs updating so your business can run smoother and be more productive. To book a consultation, call us at 410-860-9899 or click here to schedule a meeting.
Fortifi Cyber Security, sibling company to Atlantic Technology Services, can help your organization protect itself against cyber threats with world-class, highly-affordable security services. Call Fortifi today at 888-500-9111 or sign up for a free vulnerability test.