Have you updated your technology? Many small businesses put off major technology purchases due to upfront costs. However, doing business on older technology could put your business at risk. Here are five hidden costs businesses do not consider when deciding to postpone investing in new equipment or the latest software:
1. Loss in productivity.
As technology ages, it has a habit of getting slow. Even well-maintained equipment wears out over time. This problem is compounded when outdated software no longer works as it once did. Not only will outdated software lead to a productivity loss among your employees, but it can also put you at risk for more sophisticated malware, viruses, and phishing scams.
2. Loss of customers.
Customers expect your business to keep their data secure. Using outdated technology will lead to a heightened risk of data breaches. A recent Microsoft survey revealed 91% of consumers would end their relationship with a business relying on outdated technology.
3. Higher employee turnover.
Employees using outdated, and therefore slower, hardware and poorly integrated software every day are likely to become frustrated. Choosing not to update your technology may send a message to your employees that you are not willing to invest in their well-being. The result is high employee turnover, which can be a huge cost for small businesses.
4. Loss of support.
Over time, developers stop supporting older products to focus on new products. These developers are also likely devoting more attention to customers using newer versions, leaving your business as a lower priority when you need support. You may have to call in a third-party specialist to answer your question and fix your problem, and they will charge you accordingly.
5. Loss of security.
Diminished support because of outdated technology will lead to a loss of security patches for your aging hardware or software. This makes you highly vulnerable to all kinds of cyber threats, including data breaches, malware infections, and other cyber-attacks. Hackers want to break into your network, and using outdated technology makes their job much easier. When you factor in the costs associated with these losses, it can be staggering! This cost is enough to put companies out of business.
After a year that has left many businesses more vulnerable than before, taking steps to avoid these kinds of losses is paramount to the success of your business. Now is an excellent time to take stock of your technology. It is unlikely you have to replace all your technology, and we suggest updating technology, which leaves you the most vulnerable.
In addition, consider issues your employees experiencing, which hardware or software is no longer supported, and where the gaps are in your IT security.
Anderson ZurMuehlen is pleased to offer you a complimentary assessment to help you identify the vulnerability in your business’ technology through our specialized Technology Services division. Please contact us for any questions you may have regarding your business’ technology.