As the world enters a new era of AI advancements and data-driven business models, many companies are feeling the pressure to modernize their legacy technology. It’s unavoidable, really – advances in software technology are made every day, making it imperative to bring your company into the future.
However, digital transformation is not entirely devoid of downsides, the most obvious being cost and there’s the issue of end-user retraining. These reasons might encourage companies to put off modernization until later, which brings its own set of risks.
Here are just five of the most prevalent risks of running dated technology.
- Data Breaches – Cybercriminals evolve their tactics by the day, and legacy tech is especially vulnerable to cybercrime. Vendor support is practically nonexistent, which limits valuable security upgrades. With the average cost of a single data breach costing companies $3.6 million, the risk of running legacy systems can be catastrophic.
- Increasing Operational Costs and System Downtime – Revamping outdated IT infrastructure can be an expensive proposition, but the true cost of running legacy systems far outweighs the investment in new technology. For one, old hardware lacks modern power-saving technology. Making changes to older systems is also incredibly expensive as these systems are generally change-resistant. What’s more, these systems crash often, requiring constant attention from your IT department. As a result, they eat away at employee resources and are costly to support.
- Ongoing Compliance & Integration Concerns – As technology changes, so does the world of business and the regulations that support it. As such, legacy technology isn’t compliant in some industries. Also, new regulations regarding data collection and retention make migration imperative if companies are to avoid severe financial penalties. Newer systems are adaptable, which makes it easier, and often less costly to keep up with a changing world of business.
- System Incompatibility – Organizations that hold on to legacy systems do so under the perception that they still work, which is simply not the case. Most legacy systems are incompatible with newer systems that are essential to running an effective business in the digital age. Consequently, companies that insist on running legacy technology are at a disadvantage as more customers demand faster and better responses, products, and solutions.
Benefits Abound for Those Who Modernize Early
Technology is changing the way business is conducted. Holding on to legacy systems inhibits the growth and scalability of your business. Ultimately, saying yes to modernization can be expensive, but saying no may be downright catastrophic.
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