Is old technology holding your business back?

Technology progresses at pace, a fact that can create a dilemma for businesses that need to keep up with the latest efficiency- or productivity-enhancing advances while also maximising the return on investment (ROI) of their current systems and solutions.

There’s clearly a balance to be struck, but holding onto technology for too long is never a good idea. The smartphone you owned a decade ago would probably face major issues around security, performance and compatibility if you were to rely on it today. The same is true for much ageing business technology.

Most businesses instinctively know this. For example, a large majority (86%) of the businesses who responded to Zen’s latest Great British Switch Off survey say they are open to using a cloud communications solution in future. Cloud communications is a step up from traditional on-premise communications in terms of scalability and flexibility. Implementing it would be a good idea for many businesses as they look to future-proof their communications solution.

At the same time, companies are naturally worried about cost, and that is particularly true in the current era of lingering economic uncertainty. Our research found that just over three in five of the organisations surveyed agree that the cost of living is negatively impacting future business investment. Over a third agree that their digital transformation scaling has been put on hold.

In these circumstances, businesses naturally look to prioritise technology investing, but what criteria should they use? Here are three gauges to consider.

1. Technology that is obsolete or soon to be obsolete

This might be software that is no longer supported or patched, which makes it a security risk. It might be ageing hardware that just about works but is quick to break and difficult or costly to repair. In our own area of expertise the obvious example is business telephony and connectivity that still relies on the old PSTN landline network.

As you probably know, this technology is being retired in 2027. But it has already become fragile and difficult to maintain, and the cause of an increasing amount of downtime for businesses that use it. Moving to modern all-IP communications should be a priority for any organisation that hasn’t already done so.

2. Technology that is fundamental to your operations

If you’re a manufacturer, supply chain management software may be essential to your business success, and should be kept up to date. If you’re a retailer, your stock management solution might be of similar importance. Naturally, as a broadband provider we think your business connectivity should be a top priority, because it’s fundamental to the efficient operation of every other digital system.

Having said that, we’d only recommend upgrading your business broadband if there is a clear and obvious need. For example, if your business systems and software operate smoothly with a SOGEA connection, you don’t need to do anything. If they’re slowing down or dropping out, or you’re about to enter a fast growth period, you may want to consider a full fibre alternative.

3. Technology that could improve your business

This last category is the hardest to judge, because updating almost any technology is likely to lead to at least minor improvements in efficiency, productivity or some other positive indicator. Failing to update certain sector-specific systems that are at the core of your operations may give more advanced competitors an easy win.

Still, when money’s tight you can’t modernise everything, or at least not all at once. But there are ways to update a technology stack that require very little in terms of upfront cost, or that pay for themselves particularly quickly.

To return to the first example we used in this article, adopting cloud communications (and cloud-based systems more generally) on a Software as a Service (SaaS) model allows you to update a crucial part of your IT without breaking your annual budget, because SaaS solutions are rented rather than bought. You swap capital expenditure for operational expenditure, which is usually less of a shock to your financial stability.

The other great thing about many SaaS solutions is that they update automatically. You sometimes have to pay more for powerful new features, which you can decide to take or leave on a case-by-case basis. But incremental updates to the functionality of core services usually come as part of the package.

Another saving comes from not having to house the hardware in your office - including the costs of securing it - and not having to fix it when it goes wrong. That’s the responsibility of your provider.

The case for modernisation

Ageing technology can cause disruption, downtime and security risks. Alternatively, it can just be a bit worse at doing important things than more up-to-date alternatives. Every business needs an IT replacement strategy based on the impact of systems on their operations, but there are ways to update technology that are both cost-effective and future-proof.