Risks of Using Outdated Technology in Business

There are over 32 million small businesses in the United States. To ensure the longevity of your company, it’s crucial to avoid using outdated business technology at all costs. This comes with a wide variety of risks that you can’t overlook.

Below are some of the most notable you need to remember.

Security Vulnerabilities

One of the most important factors to consider is the possibility of a data breach. In fact, the average data breach costs over $4 million. Hackers prey upon companies with security flaws, and you will only serve to make your business more enticing if you use outdated technology.

Decreased Efficiency

Old technology is often slow technology. Using outdated applications will more than likely decrease your productivity. This could substantially impact your bottom line, and it might even be something your company can’t accommodate.

For instance, small businesses need to do all they can to keep up with their competition. If you consistently fall behind, it may be impossible to recover.

IT Downtime

IT downtime is one of the worst scenarios your company can deal with. If people aren’t able to access your site, products, or services, they’ll likely turn to a competitor instead. When this happens, there is a good chance they won’t come back to your business.

Not only will you lose potential customers, but your competitors will gain them. Old business technology is prone to frequent crashes and freezes, which could waste valuable time.

Things can worsen if these situations involve resetting a network or system. Be sure you have an appropriate recovery plan in place.

Poor Scalability

Outdated applications typically don’t have the power to scale as fast as modern businesses need. This poor scalability will only hold you back as your company grows.

Sometimes, it could be the primary bottleneck that mitigates how fast your business expands. It’s in your best interest to budget for modern versions of existing applications you use.

Using older software to save money can be tempting, but it will cost you in other areas. In context, you’ll lose much more money than you save through decreased revenue, missed opportunities, etc.

Increased Costs

Old technology is frequently more expensive than modern solutions. For instance, let’s consider phone systems.

Maintaining an analog phone system typically costs thousands of dollars per year. In contrast, a cloud-based phone system costs substantially less money. Look for modern solutions when possible there’s a good chance they’ll be cheaper than what you already use.

You can then reinvest the money you save into other business areas. Consider this moving forward so you can take the appropriate steps for your company’s growth.

Never Use Outdated Technology

Although it might initially seem innocuous, using outdated technology has many potential consequences. Always prioritize security updates and contemporary software so that you can avoid problems in the future.

Reach out to us today at Pegasus Technologies. We have the tools and resources to help keep your data as safe as possible.