The High Cost of Low Tech: How Upgrading to Cloud & AI Can Boost Revenue 14%

Technology is a crucial aspect for businesses of all sizes. From managing the day-to-day transactions to streamlining collaboration among various teams, the equipment we rely on is key in completing our work. What happens when that technology is outdated? Research shows legacy systems and obsolete infrastructures are overwhelmingly bad for business. Below, we’ll briefly go over the dangers of outmoded tech and what companies are doing to improve their technology strategies.

First, what is a legacy system and how does it negatively impact business? Although it depends on many factors, a legacy system in IT essentially refers to a system way past its prime that’s still in use. It could pertain to software, hardware or even a set of processes which could easily be improved upon with newer, more effective solutions. Often, it is a combination of antiquated tools that are holding up progress as they struggle to meet the changing demands of an organization in today’s ultra-competitive space.

An example of an outdated technology is dial-up Internet or a localized intranet connection that has become too slow and dated. These types of connections are often very poor when compared to the latest options, such as fiberoptic. In fact, a recent poll found 82% of employees say reliable Internet is the single most important tool available to them, and 71% believe a slow and unreliable Internet connection holds back workplace productivity.

While operations may seem just fine with legacy systems, there are “lost opportunity costs,” which generally outweigh the cost of sticking with an old setup. For instance, by leveraging the power of predictive and preventive analytics for big data, companies can take advantage of growth opportunities their competitors are overlooking. Such potential business opportunities could bring on further innovation and increased flexibility to give businesses a real chance to flourish in their specific market.

With the right high-tech tools, workplace productivity and even revenue could receive a boost. One study found companies can see a drop of 13% in business costs by modernizing outdated systems. Fortunately, there’s a wide world of such tools on the market for companies to choose from, no matter their size. Whether an organization stands to benefit from advanced IT management software, an automated email marketing app or private cloud solution, affordable options are available to enhance organizational efficiency.

Productivity isn’t the only area with potential for improvement. Data protection and website security are major areas of concern when it comes to obsolete tech, as it can open an organization up to a breach. Because of this, increasing the level of security and device compatibility is listed as one of the top reasons to implement a legacy systems modernization.

Want to learn more? Check out the accompanying resource from CIO Solutions for further information on the costs of outdated technology.

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