Investing in new technology can seem daunting, but when you run the numbers, the payoff is well worth the investment. A recent study reveals small to mid-sized businesses would recoup costs of an upgrade to their operating system in 18 months. When factoring the continued and soaring costs of servicing outdated operating systems, businesses that choose to upgrade can save an average of 90 percent in lost productivity, according to the study. Those are results even companies of all sizes can’t ignore.
End of support or start of return?
With the end of Windows XP support coming on April 8th, the issue is coming to a head as over 40 percent of small and mid-sized businesses currently running XP. Making an upfront investment in technology like Windows 8 can seem like a leap of faith, but as the numbers point out, it’s only logical.
The money pit of older technology
|“Small to mid-sized businesses would recoup costs of an upgrade to their operating system in 18 months.”|
Companies who choose to continue running outdated operating systems might feel like they are actually cost saving because they are not laying out capital. But in actuality, in the fifth year of use, old technology drains $761 a year for IT labor cost and $324 in lost user productivity. Those issues include dealing with patches. Purging malware. Or even working to keep vital software like QuickBooks functional after it ends support for Windows XP. Those costs won’t go down, and they don’t go away.
Measurable costs like productivity don’t factor in the losses in opportunity. According to recent polls, 90 percent of customers would refuse to do business with organizations using outdated technology. And nearly half of customers won’t do businesses with companies they know to have been hacked. Since upgrading an operating system is a major upgrade in security, it’s an investment in retaining customers. Finally, businesses using older desktop computers turn off over 60 percent of customers from making a purchase. Over time, all the costs business won’t see really add up.
The cost to be the boss
|“Old technology drains $761 a year for IT labor cost and $324 in lost user productivity.”|
The upfront investment in new technology pays off quickly. First, it’s a one-time cost. While older technology continues to drain resources, upgrades start showing returns immediately. Or maybe it’s upgrading your point of sale to include touch devices or mobile payments for a dynamic customer experience. The benefit may just boil down to less glamorous concerns like compatibility for vital tools and compliance with government reporting standards. Whatever the reason, change in this case will be good.