We’ve all felt the frustration of using outdated technology in the workplace. Unfortunately for businesses still relying on legacy systems, frustration isn’t the only downside of outdated technology. From increased costs to higher cyber security vulnerability, here are the top six risks of using outdated technology in your business:
1. Increased Costs
Outdated legacy systems get more expensive to maintain as the technology becomes obsolete. Take phone systems, for example. The average cost of maintaining an analog phone system for five to ten phone lines ranges from $3,500 to $4,000. In contrast, companies that switch to a cloud-based phone system save an average of $304 per user each year1 – and that’s on top of the increased productivity and flexibility a UCaaS system provides.
2. System Downtime
Unreliable, outdated legacy systems can’t keep up with evolving technology, especially as organizations shift to using more cloud-based applications and platforms. They fail more often and take longer to get back up, and may even take longer to fix due to declining skill sets.
The clients you serve don’t just want reliable access to data – they expect it. If frequent system outages and downtime prevent your clients from getting the service they’re looking for, many will take their business to your competitors.
3. Decreased Productivity
More system downtime doesn’t just lead to lost customers – it also causes a significant decrease in employee productivity. In the U.S. alone, employers may be losing up to $1.8 trillion in wasted productivity due to outdated technology.2 Your organization will get more out of employees who aren’t forced to spend portions of their day trying to get the systems they rely on to work properly.
4. Cyber Security Vulnerabilities
An increased risk of cyber security vulnerabilities should concern every business, especially those in industries where data safety is critical to maintaining compliance like healthcare, legal, and education. Over 450,000 new malicious programs are found every day,3 and because legacy systems can’t recognize and defend against these threats, data breaches and compliance issues are rising.
Is your organization still running outdated technology? Download our checklist to determine if a cyber security audit could benefit your business by identifying cyber security vulnerabilities in your outdated systems and more.
5. Lost Competitive Edge
Sticking to outdated systems while your competitors modernize leaves your company at a major disadvantage. Aside from the cost-savings and efficiency newer systems offer, outdated technology also lacks the level of data and real-time analytics needed to make better-informed decisions about your IT infrastructure. This lack of visibility can lead to your business falling behind – without you even knowing the cause.
6. Lack of Flexibility and Scalability
Outdated technology is typically rigid and unable to adjust to your business’s needs as you grow. In the age of digital transformation, flexibility is key in adapting to changing workplace and customer demands.
For example, the need for remote work flexibility continues to rise even with the return to onsite work. More organizations are looking for ways to support their employees with flexible work options, and new technologies like UCaaS and SD-WAN make this possible.
Refresh Your Technology With PAG
While many companies continue using outdated technology due to perceived cost savings or reliability, the risks of legacy systems far outnumber the benefits. Not sure if your business technology is outdated? Learn how to manage your business technology better – and determine if it’s outdated – in this article.
If your organization could do with a technology refresh, PAG is here to help. Connect with us today to discover how our zero-risk telecom audit can help you identify outdated technology and invest in new solutions that keep your business ahead of the curve.