Computers today can last a very long time. However, using a computer for your business until it no longer functions properly is a surefire way to lose money. While new computers and technology can be costly, it is very tempting to put off those large expenses as a way to save money, not realizing that doing so can be more expensive in the long run due to these eight reasons.
1. Security Threats
New computers have received more recent security updates that are critical to keeping your information safe. There were a record 1,579 data breaches in 2017, according to the Identity Theft Resource Center, and small businesses are particularly vulnerable. What would be the cost to your business if you experienced a data breach?
2. Lower Productivity
H.R. Dive reported in 2016 that U.S. businesses may be losing up to $1.8 trillion annually as a result of outdated technology hampering productivity. Older computers are slower, freeze more frequently, and require more maintenance. Using outdated equipment also limits your ability to run newer, more efficient software programs that could automate repetitive tasks for your employees and free up time for work that provides greater benefit to your business.
3. Customer Perception
A Microsoft survey found that more than 90 percent of consumers stated that they would consider not doing business with a company that uses outdated technology. Consumers’ primary concerns were security, privacy, and convenience.
4. Distrust in Technology
If your business has outdated technology, it may lead to your employees having a poor attitude about using it. They lack faith in technology in general, but the root of the problem is that the tech is the wrong type for your employees’ needs, outdated, or being used incorrectly.
5. Staff Turnover
Getting to use the best and most up-to-date technology is not usually thought of as a recruitment or employee retention tool, but it should be. A survey by Chelsea Apps found that 47 percent of employees would consider changing jobs because the technology they have to work with on a daily basis is so terrible.
6. Better Models Available
Over just a few years, new models of computers can provide typically two times better performance than previous models. What would your business do with two times more computing power and faster capabilities to get the same work done?
7. Cost Savings
Technology is the perfect place to look for cost savings, as you may be able to negotiate for better rates on hardware, software, network service, consulting, and more. You may also be able to consolidate purchases and mitigate duplication across your business. If brand new tech is difficult to squeeze into your tight budget, look into options for purchasing a new model that’s been refurbished; just make sure you get all documentation from the vendor and understand the details of your warranty.
8. Stealth Costs
A study by Techaisle found that more than 36 percent of small businesses were using computers that were at least 4 years old and spending an average of $427 per computer each year for repairs. The costs of repairs and upgrades to old machines, sometimes referred to as “stealth costs,” can quickly add up to be more than it would cost to buy a new machine.
Your business can’t afford not to update your computers. If you are not sure where to start, contact an IT professional. For more cost saving tips, subscribe to our blog.