Tough economic conditions often mean some businesses defer updating their technology, but this can be a false economy. As economic turbulence persists, businesses have intensified their focus on cutting costs wherever possible.
Technology represents one of the most significant investments for businesses, however optimising these resources is crucial for maximising ROI. The forthcoming Autumn budget, set against a backdrop of economic uncertainty highlights the importance of strategic investment in technology to maintain competitive edge and operational efficiency. Balancing cost optimisation with business growth demands a strategic approach. According to IDC, organisations typically update their technology every three to six years. However, experts suggest a refresh cycle of two to four years, incorporating incremental changes to minimise expenses and stay ahead of technological advancements.
The hidden business costs of outdated technology
Outdated technology can seem like a cost-saving strategy, but it often leads to hidden expenses that can significantly impact a business. These costs come in various forms, such as:
Security risks
Legacy systems leave enterprises exposed to cybersecurity attacks, as well as imposing significant financial burdens on businesses due to the costs of extended technology support. Not to mention the costs associated with repairing brand reputation.
Operational costs
Maintaining legacy tech can prove to be every bit as expensive as a digital upgrade. A newer device estate allows work to be done quicker, more consistently and with less disruption from downtime, maximising day-to-day productivity and service delivery.
Technical debt
When it comes to upgrading, time is of the essence. No company can defer upgrading its tech indefinitely: sooner or later, the business will fail as its rivals outpace it. The debt of losing of knowledgeable and experienced staff, is a cost that can be detrimental to business growth.
Poor integration and compatibility
A lack of integration with more modern technology and automated systems can lead to data islands.
Non-compliance
Reliance on legacy systems means that a company’s outdated tech could be based around outdated financial and data protection legislation.
Missed opportunities for innovation
Relying on dated technology limits the pace at which organisations can innovate.
Consider Moore’s Law, which suggests that computing power doubles every two years. Technology evolves rapidly, and the operational costs of outdated systems increase exponentially. IDC reported that enterprise server operating costs jump from an average of $7,541 per year for the first three years to $22,511 per year thereafter.
From a devices perspective with Microsoft gearing up to end Windows 10 support in 2025 and a new generation of AI enabled devices available, it’s time to refresh, organisations will want to do this sooner rather than later to avoid being left to the mercy of the market. This highlights the importance of timely technology refreshes to control costs and maintain efficiency.
Strategic planning for cost optimisation
Proactively planning for technology refreshes, rather than reacting to failures, gives you control over the process. This involves aligning tech upgrades with business outcomes, assessing the current technology environment, and identifying areas for improvement. Strategic planning ensures that every investment supports your organisation’s objectives and maximises ROI.
Seven key steps to take for cost-effective technology refreshes
Evaluate your current technology assets
Start with an audit of all hardware and software assets. Identify outdated or underperforming systems and determine which need upgrades. This assessment highlights gaps and inefficiencies, helping you make informed decisions about technology investments.
Analyse the costs
Carefully analyse the costs associated with a technology refresh, including hidden expenses like training and adoption, maintenance, and potential downtime as well as how certain performance technology can also maximise productivity. This allows for effective resource allocation, prevents overspending, and ensures a better return on investment.
Align technology requirements with business outcomes
Ensure that technology investments directly support business outcomes. Evaluate how new technology can enhance operations, improve customer experiences, and streamline processes to achieve better outcomes and avoid unnecessary spending. Build a solid business case that shows maximum ROI.
Keep cyber security front of mind
Keeping your organisation secure with the right infrastructure, devices and applications and providing security solutions to address security gaps is vital to protect from cyber attacks and face cybercrime costs, damage costs are set to increase by 15% per year until 2025 where estimates predict that global expenditure on cybercrime could reach £8.4 trillion.
IT recycling
Properly disposing of redundant technology is crucial. Securely erase or destroy sensitive data to prevent breaches and comply with regulations. Integrating sustainable practices in IT recycling reduces your carbon footprint, complies with environmental regulations, supports your ESG goals, and benefits your organisation financially.
Partner with experts
Access the expertise of professionals can simplify large-scale tech deployments. Experts provide insights into best practices and tailored strategies, reducing complexities, minimising downtime, and ensuring success. Partnering with experts like SCC can reduce costs, save time and maximise ROI.
Payment options
With limited budgets work witha partnerthat can provide a range of options and can structure a payment profile for your technology refresh to suit your budgetary needs and achieve the business outcome for your organisation.
Cost Effective Talent
Facing the urgency to fast-track digital transformation, organisations often require enhanced expertise within their teams and can struggle at times to attract and retain the right talent, while sticking to budgets.
We can provide skilled professionals to assist at every phase and work with you depending on what budget is available to you. Through services such as SCC Nearshore, SCC Flexible Resourcing or Consultancy we deliver the experience, knowledge and on-site training your team needs.
SCC’s key capabilities for a successful technology refresh
Digital Workplace
Unlock substantial cost savings while driving business outcomes. SCC can assess your current device estate and user personas to ensure that your new technology is elevating employee productivity through seamless technology experience and adoption. We do this by providing solutions in:
- device lifecycle
- application lifecycle
- hybrid collaboration through the right AV platforms and equipment
Ensure you are ready for Windows 11 with the right device estate for your organisation.
Hybrid Cloud
Optimise costs within your infrastructure and network whether you’re looking to:
- deploy SD-WAN,
- consolidate your infrastructure,
- leverage HCI, move to a hybrid model
- or transition fully to the cloud
We can help you navigate the pathway to success.
Cyber Security
Partner with industry leading security vendors to support your end-to-end security requirements, by ensuring you have access to the right tooling you need to empower your business in making the best business and technical decisions to:
- optimise costs through consolidation
- combat security vendor sprawl
- reduce complexity, risk and streamline operational efficiency.
Unlock our expertise across GRC, detection and incident response to create cyber confidence and protect against both cyber attacks and ransom demands.
Software
Proving you with visibility of your entire IT landscape by leveraging our ITAM platform.
- simplify and rationalise applications
- select, buy, renew and manage the right software
- reduce your annual software costs
- maximising the lifecycle of your software procurements.
IT Recycling
Secure, compliant, and sustainable disposal of retired technology protects your organisation and the environment with our recycling solutions at SCC Recyclea to meet onsite and offsite needs. We cover everything from:
- refurbishment
- recycling
- remarketing of your old devices.
Payment solutions
Providing you with options to help you with budget constraints by
- utilising our unique in house “As a Service” subscription based payment models
- using our relationships with trusted financial institutions and vendors we can help you to advance your technology needs.
- helping you to release value from your existing technology estate.
- Providing agile and flexible payment solutions to help mitigate budget limitations and avoid technology obsolescence.
Contact us
Achieve a seamless technology upgrade
With the right strategy and expert partnership, a technology refresh can be both smooth and cost-effective.
How we might use your information
We may contact you by phone or email, if you have not opted out, or where we are otherwise permitted by law, to provide you with marketing communications about similar goods and services, the legal basis that allows us to use your information is ‘legitimate interests’. If you’d prefer not to hear from us you can unsubscribe here. More information about how we use your personal data can be found in our Privacy Policy.