How Much Are Your Legacy IT Systems Costing You?

These past few years have been hard on many small to medium-sized businesses, and while many new tools have already proven that they can help organizations do more with less, cloud migrations can be difficult. Securing these new tools requires more specialized IT expertise. And in many instances, organizations will also need to make significant network and other infrastructure updates before they can start reaping the benefits. 

Lump all of that in with change fatigue, persistent warnings about an upcoming recession, and pressure to raise salaries to match inflation, and you can understand why many businesses are dragging their feet. But the costs of maintaining old technology are very real, even if they’re less obvious.

Aging IT Infrastructure Costs

There’s a name for much-needed updates that aren’t getting made: tech debt. And just like every other form of debt, maintaining it is expensive: 

• 10-20% of many organizations’ tech budgets are diverted toward resolving issues related to outdated tech 
• 60% of CIOs said their organization’s tech debt had risen noticeably over the past 3 years
• Some companies reported that managing their tech debt allowed their engineers to spend 50% more time on work that supported their business goals 

Eliminating tech debt entirely is unrealistic for most. But IT time is expensive. Where it’s spent matters. Spending a considerable chunk of it on your tech debt isn’t a good use of this valuable resource. 

But outside of IT costs, aging infrastructure also affects your organization in a myriad of other ways.

The Costs of Outdated Technology Throughout Your Business

Over time, outdated technology has a “death by a thousand cuts” effect on organizations, and the cuts aren’t always easy to see.

1. Frequent Repairs

Moving parts tend to wear out more quickly, which means hard disk drives, fans, cooling pumps, and a good many printer parts are going to need to be replaced more often. 

Sometimes, simply replacing a part makes sense. But over time, those parts tend to get more expensive, and at a certain point, you’re throwing good money after bad.

2. Productivity Drains

Older technology can drain your productivity in a number of ways. Here are just the most common: 

1. Slower processing speeds, which adds time to every task 
2. Crashes and other failures that lead to downtime
3. Compatibility issues with important software updates or integrations
4. Systems and workflows that still require time-consuming and repetitive “busy work”
5. An inability to support remote work

Just that second point can be a big one. Unexpected downtime costs organizations significant dollars and can even cripple an entity altogether.

3. Workplace Frustration 

It’s not just your processes that suffer as a result of outdated software. It’s a major pain point for your staff, and it’s also a big blind spot for a lot of executives.

Here’s the data:

• 54% of executives think their staff gets frustrated by outdated tech
• 77% of employees said they’re fed up with outdated tech
• Almost 70% of employees would take a pay cut to have significantly better software and technology 
• Almost 70% of employees don’t think their company prioritizes digital transformation

Attrition is expensive. If you find yourself losing people, outdated technology may be a sneaky reason why.

4. Environmental Costs 

Outdated technology often means not only manual processes but also paper-based ones, and that also means higher print costs and lots of waste. On top of that, outdated technology is also typically less energy-efficient.

5. Security Issues

Downtime is expensive, and so is IT time and staff attrition. But we haven’t even touched on the most expensive problem that outdated technology can cause. 

Relying on outdated technology puts you at a higher risk of ransomware, data breaches, and more. 

And just how expensive are they? Here are a few need-to-know stats: 

• The average ransom in 2024 is $2 million
• Excluding ransoms, the average cost of recovery is now $2.73 million
• The average downtime a company experiences after a ransomware attack is 24 days
• The average cost of a data breach is $4.88 million

IT Budget Optimization Options

Got a bigger update list than your budget has room for? You’re in good company. Some updates are going to be more important than others, and some can actually help pay for themselves but may require some special skills upfront.

1. Embrace Cloud Computing 

Embracing more cloud computing solutions can help you reduce the amount of on-premises infrastructure that you have and will make it easier and less expensive to stay up-to-date — especially as technology continues to become obsolete faster and faster. 

Cloud migrations can be challenging for IT pros who don’t perform them routinely, but that isn’t a good reason to put it off. You can get outside help for this one, and a good provider will know how to make the transition as seamless as possible so you can start seeing ROI right away.

2. Consider Managed Services 

Managed IT, print, and voice solutions are also a relatively simple way to keep your tech up-to-date without budget upheavals. 

Depending on the provider you choose and their approach to partnership, not only can they find smart ways to help you save money on your infrastructure as they simplify lifecycle management, but they can also help you achieve a few business goals at the same time.

3. Take Advantage of IT Consulting

Just want the mentorship piece that might come from a CISO or a CIO? Those specialized skills often come with a hefty price tag. But fractional CISOs and CIOs — where you get a “share” of their time for a fraction of the price — are now more common, so smaller organizations with tighter budgets can still get customized recommendations on what needs an immediate update and what can be safely postponed. 

Like a managed service, these consultants will work with you over a period of time and can also help you meet other goals, like, say, preserving value after a merger or acquisition, helping you meet vendor due diligence, or boosting productivity.

4. Get a One-Time Assessment

Many managed service providers will offer one-time assessments to help companies get a technology roadmap. 

Sometimes, those assessments will just include raw data, which isn’t much use to anyone without sophisticated IT expertise. But others are quite in-depth and will take into account your unique risks. For example, for some businesses, a single point of failure in their system that may cause a day or two of downtime is an acceptable risk. But for others, that would be catastrophic. 

We offer an in-depth variety and a few options for businesses hoping to simplify their IT budgeting and ensure they’re spending their dollars where they’d make the most impact. Click the link below to see your options!