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The endless pop-up notifications begging for an update or patch are just some of the frustrations of using outdated technology. We’ve all been there before. The frustration and pain caused by using outdated technology can significantly impact a company’s bottom line. Not only does it expose a company to cybersecurity risks, but it can also cause financial repercussions. In addition to increasing costs, outdated technology can also cause system downtime. This is why it’s important to identify the top risks that can affect your company’s operations.

Crashes and System Downtime

The excuse that a computer crash resulted from outdated technology has been a common excuse for not updating or replacing outdated technology. This is because the rise of cloud services and software-as-a-service offerings has made it easier for companies to keep their data safe. Today, many companies are not only looking for on-demand and reliable services, but they also expect them to be delivered in a timely manner. If a crash or system downtime prevents them from receiving what they’re looking for, they’ll most likely leave their business to a competitor. There are many companies out there that can provide the right technology to meet the demands of their customers.

Increased Costs

Are you better off investing in new technology or maintaining an outdated system? While it’s not as costly to maintain an old vehicle or home, it can be very costly to maintain a legacy system due to how quickly technology ages. According to a study conducted by the US government, it costs around $337 million annually to maintain ten of its legacy systems. Not only can having outdated technology negatively affect your company’s operations, but it can also have a negative effect on the morale of your employees. Low employee satisfaction can lead to high turnover, which can cause additional costs for training and recruitment.

In addition to having outdated technology, legacy systems can also use more power than newer technology, which can result in additional costs for your business.

Decreased Productivity

According to Microsoft, small and medium-sized businesses (SMBs) that use legacy technology could lose up to 7 days of productivity per year due to the slow performance of their equipment and the time it takes to perform maintenance and patch fixes. Even if you don’t have a problem with your old computer, it can still cost you 21 hours of productivity due to the repairs, security fixes, and updates that it requires. In addition to costing your company money, having outdated technology can also have detrimental effects on the productivity of your employees. It can lead to higher turnover rates and decrease the satisfaction of your customers.

Security Holes

Having outdated technology can also increase the risk of your company being infected by malware. According to a study, over 10,000 new threats are discovered every hour due to the lack of updates and security fixes on your technology. Windows XP and Windows Server 2003 users are 6x more prone to getting infected with malware threats than those using Windows 10. Server 2003 users, on the other hand, are at risk of exploitation and cyberattacks. The end-of-support for Windows Server 2003 was on July 14, 2015. Even though Office is mainly used for basic productivity tools, such as Excel, PowerPoint, and Outlook, it can still expose vulnerabilities in your network. One of the best ways to ensure that your company is up to date is through regular documentation and maintenance processes.

Legal and Regulatory Compliance Risks

Having outdated technology can also increase the risk of your company being fined by the authorities. This can happen due to the failure of your company to transition away from legacy systems and onto newer software. Having outdated technology can also make your business a target for cyber attacks. Small-to-medium-sized businesses (SMBs) are no longer considered unimportant or small by cyber-criminals. Criminal organizations target these types of businesses due to their high reward targets and ability to collect valuable personal information. Medical practices, engineering firms, educational institutions, and law offices are some types of organizations commonly targeted by these types of criminals. They are also the ones that are most lax when it comes to updating their technology. Even if you’re not a healthcare or law firm, your company still has to follow various regulations and compliance requirements when handling employee data. These regulations apply to all types of businesses that process payments and handle sensitive information.

By replacing their legacy systems, organizations can lower their risk of being fined by the authorities, improve their security, and increase their productivity. To start the process of implementing new technology, businesses can request an IT assessment. This process will help them create a customized road map for their company.