Legacy systems pose real challenges to small business, often because they’ve outlived their usefulness and no longer provide a worthwhile return on investment (ROI). Hence, they’re best upgraded or replaced.
These systems can include hardware and software which may have serviced a specific technology purpose some time ago, but now may have been enhanced with newer features.
Of course, technologies evolve so quickly that it doesn’t take long for current technology investments to become outdated. (Picture black bananas where if you leave them for too long, they start spoiling).
The real catch for all organisations is that over time, older technology becomes less efficient and delivers a lower return on investment (ROI) than equivalent or more capable new technology.
Keeping outdated technology in service can raise costs and reduce productivity.
Here are some possible reasons why:
- Maintenance – Limited budgets for most SMBs means old technology is expensive to maintain and tying up cash into this seems counterproductive.
- Compliance – Compliance failures can lead to civil or criminal penalties and punishing fines.
- Security – New technologies frequently include security enhancements that can’t be added to older technology.
- Compatibility issues – Legacy systems are often incompatible with newer systems. This locks them out of new technologies and can pose high (if not impassable) hurdles to adopting and integrating cloud-based services and solutions.
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