While you read this, outdated technology is out there creating havoc. Nevermind the relentless loading circles and infamous 404 errors. It’s eating away at your money, decreasing productivity and leaving gaping holes in your security.
There’s an ongoing list of businesses that have either lost millions, gone bankrupt or completely failed due to their outdated, legacy technology.
And trust us, you really don’t want to be on that list.
From security issues to increased costs, here are three big risks that will have you completely reconsider using outdated technology.
Your Tech is that Antiquated
The term ‘legacy’ describes outdated and inefficient technologies, systems or infrastructures.
With outdated technology, you run the risk of falling behind, losing out on missed opportunities and laying waste to resources.
And legacy technology keeps businesses stuck using a capital expenditure (CAPEX) model to afford their infrastructure. You invest in systems (infrastructure, servers, hardware and software) that you need to operate and maintain. You then need to hire the correct staff to handle those systems.
To top it off, taking Moore’s law into consideration, hardware and equipment also needs upgrading every few years. Technology is constantly evolving and as it evolves, it becomes cheaper.
The Risks Attached to Outdated Tech
3. Security Issues
Outdated legacy technology essentially increases the threat of cybersecurity breaches. And these vulnerabilities extend to a variety of different risks.
As a matter of fact, research shows that over 10,000 new malware threats are discovered each hour.
And technology has a huge role to play in your susceptibility to these risks.
Let’s say that you’re using Windows XP in 2021 – you will be around 6x more likely to be infected with malware threats than by using Windows 10.
With these security vulnerabilities being so dangerous to business, the last thing that you want is to deal with high-profile ransomware attacks. Consider the $2.3 million ransom paid by the Colonial Pipeline or even the $1 million ransom paid by The University of California at San Francisco – nobody wants to deal with the immense security risks of poor cybersecurity.
2. Exorbitant Costs
Outdated legacy technology can be extremely expensive to maintain. Similar to checking on and maintaining an old car, parts are harder to find, the environment devalues and the exposure to issues is far greater.
And to top it off, technology ages at a much faster rate.
The biggest challenge is identifying where money should be spent. Should it be on maintaining legacy systems? Should it be around driving new business innovation and value? According to The Register, legacy IT infrastructures are behind 80% of UK taxman’s pandemic costs.
The report goes further to say that HMRC spent £53.2m, between 2019-2020, maintaining their legacy stacks instead of modernising them.
Nearly half the money the UK spends on IT (£2.3bn a year), goes towards supporting, operating and maintaining legacy IT systems.
1. System Failures, Crashes & Downtime
System failures and downtimes are among the most damaging legacy pitfalls to any business. And it takes a matter of minutes for a system to crash and for a company to lose a significant portion of business, and as a result, profits.
Get this, a 2016 study based on real survey data found 98 percent of organisations placed downtime costs at over $100,000 per hour. It doesn’t end there. Some businesses saw numbers as high as $5 million from a single hour of stoppage.
And an upgrade is all that’s needed.
Now, 0with the rise of cloud services and Software-as-a-Service (SaaS) tools, there will be significant reductions in data loss, error and downtime, by storing data in decentralised systems that have a perfect back-up plan should there be any issues.
Customers, passengers and clients don’t just want uninterrupted and reliable access to data and excellent service, they now expect it. If crashes and resulting system downtime prevent organizations from receiving what they want and expect, many will not hesitate to take their business elsewhere.
Start Modernising Today!
With the abundance of issues and threats that legacy systems impose on businesses, the best possible route to take is that of digital transformation.
Data engineering, cloud technologies, machine learning and ux design are all part of a new normal. And it’s never been simpler to start your digitisation journey…
… Ensure security, take back your data and become the differentiator.