About 80 percent of large enterprises in the United States are still using at least one piece of legacy technology. If enterprises with unlimited budgets are still using legacy tech, you can imagine how many small businesses are stuck in the IT stone age.
The worst part is the people running these businesses don’t have an idea of just how much their legacy technologies are holding them back. Sure, those old computers might be getting the work done, but in the long run, they’re hurting the business.
Continue reading to learn more about the different ways old technology negatively affects businesses.
1. Increased Cybersecurity Vulnerability
As we speak, close to 50 percent of cyberattacks are targeting small businesses like yours. Why would hackers go after small businesses that can’t be said to be lucrative targets? It’s because they’re easy targets, often with little to no cyber defense systems in place.
If you’re using legacy technology, you’re exposing your business to cyberattacks. In many instances, legacy systems, especially software, don’t have the latest security features.
For example, let’s say you’re still using Windows 7 on your office computers. While it was one of the finest operating systems, Microsoft ended support for it in January 2020. This means it’s not getting any improvement or security updates.
If hackers discover a loophole, they’ll have a field day attacking systems running on Windows 7. And if there’s one thing you need to know about data breaches, it’s it’ll cost your business about $4 million.
2. Increased Production Costs
Depending on the nature of your business, legacy technology can increase your production costs in various ways.
If you’re a service-based company, for example, using old computers and outdated software that take longer to load will increase the time it takes one worker to complete a task. So, to increase output using the same technology, you might be forced to hire more workers. This has a direct cost implication.
That being said, some small business owners would rather live with the increased production cost than spend a fortune on modernizing their legacy systems. If you hold this view, you’re mistaken.
Sure, new technology can be pricey, but the return on investment is worth it. Plus, you can sell off your aging IT assets and recover some money, which you can use to fund your new purchases. This is one of the biggest asset recovery benefits.
3. Low Employee Morale
When employees are demotivated, and in low spirits, their productivity will decline.
There are several reasons your employees can become demotivated. Legacy technology is one of those.
Think about it. How would you feel spending your day behind a computer that takes ages to execute a certain task? Perhaps it crashes or freezes multiple times.
You’ll hate coming to work, right?
That’s what your employees are feeling if they aren’t using newer business technology.
Get Rid Of Legacy Technology
Business digitization has powerful benefits, but technology isn’t timeless. It grows old and becomes less efficient. Your legacy technology might still be getting the job done, but at what cost? You now know how it’s holding back your business.
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