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How much is obsolete tech costing you each year?

Ballooning energy costs. A new wave of cyber crime. A workforce more willing to move jobs than any before it. The costs associated with using obsolete tech can be far larger and more insidious than the upfront cost of any upgrade…

Liz Sunter

Holding on to ageing hardware for as possible can feel like a sound financial decision, especially if you rely on bespoke software systems that would need to be upgraded along with your office machines. But modern technology is integral to delivering a satisfying employee experience, ensuring customer data remains secure, and making sure your IT estate is an asset, not a burden. Let’s look at some key costs.

 

Running costs and sustainability gains

UK energy prices have ballooned this year, and are set to rise another 32% in October. Older tech is significantly less energy efficient than the most recent models. For example, devices with Apple’s M1 chip match the peak performance of PC chips while using 75% less power and deliver up to 20 hours’ battery life on a single charge. That’s a huge reduction in your energy overheads, without compromising on performance.

But lower overheads aren’t the only benefit. Sustainability carries an increasing amount of weight when companies and consumers decide where to take their business. B2B companies are now asked to provide evidence of their carbon footprint, EcoVadis score and more before being awarded a contract, while 81% of consumers say sustainability has become more important to them over the last two years, and are willing to pay an average of 12% more for a sustainable product.

Still think it’s not worth updating those old PCs?

 

Paying the price for security breaches

Older machines are more vulnerable to cyber attacks than newer ones. This isn’t surprising: their flaws are well known; they run older software and operating systems with more vulnerabilities; they’re not compatible with upgrades that fix those vulnerabilities.

Many companies seem to think this is a risk worth taking, but with malicious attacks jumping by 450% in 2020 (including huge rises in retail and healthcare), it’s more important than ever that you secure your IT estate.

The financial impact of these attacks can range from funds being stolen outright to extortion via ransomware to a drastic drop in business once your customer base realises you can’t keep their data safe. In fact, one estimate places the average cost of recovery as high as $8.64 million. Does your business really have that kind of money to spare? And do you really want to bankroll an IT upgrade after an attack, when you can’t be sure customers will return?

 

The cost of customer attrition

Online spending surged during the pandemic, and many consumers seem content to continue their shopping online. However, research by Microsoft shows that consumers have been worrying about the security of eCommerce systems for years, and more than 90% said they would take their business elsewhere if they discovered a company was using outdated technology.

But even if customers don’t know about your ageing tech stack, what kind of impact is it having on their user experience? With more options to choose from (and more advertising to be influenced by) that at any other time in history, delivering an intuitive, responsive experience that’s optimised to work with modern devices is key to reducing customer attrition. And remember: every 5% reduction in customer attrition delivers a 25-95% increase in profits – more than enough to cover the cost of an upgrade.

 

Can you afford to miss out on top talent?

According to research by Adobe Workfront, 49% of workers are likely to leave their job if they are frustrated by the technology on offer; G2’s State of Software Happiness report tells us that 1 in 8 workers has already made the move. It also revealed that 62% feel they’re not reaching their potential because they’re being held back by obsolete technology.

Lower productivity, higher turnover, and the constant costs of hiring and training new staff rather than being able to depend on established talent are all going to wear on your business’s bottom line – so what can you do?

 

Modernise your technology stack with Jigsaw24

As a trusted IT partner with over 30 years’ experience and over 25,000 clients, we can help you adapt your technology stack to overcome any challenge. If you’re struggling to break free of an ageing hardware estate, there are several ways we can help.

Financing First, decide what kind of financing model suits your business. Do you want a long-term leasing agreement that gets cheaper as your headcount rises? Are you looking for a flexible arrangement that will let you add and remove devices as demand fluctuates? Is your main concern being able to offset the cost of an upgrade by unlocking the residual value of your devices? We can help in all of these scenarios, delivering flexible device services that will help you free up capital and reduce IT costs to a single, predictable cost per user.

Refresh cycle Another important consideration is how often you want to refresh your technology and how old devices should be handled. Do you need to adapt your existing refresh plans, or are you starting from scratch? How will you ensure old devices are wiped before being sold on? What guarantee will you get that devices are being recycled or disposed of responsibly?  Our experts will work with you to develop a solution that takes care of your new and existing devices, honours your environmental commitments, and helps you unlock the residual value of your devices every time you refresh your estate.

Support We offer three levels of ongoing support: a managed Device as a Service (DaaS) offering, which includes device deployment, management, support and maintenance; a technical support and repairs service, and a maintenance-only service. Which is right for you will depend on the level of technical resource you have in-house, and how closely you want to monitor the technology your end users are using. Our team can work with you to design and build a technology stack and support programme that will deliver security, control and flexibility for your staff.

 

To find out more about DaaS and how to avoid the hidden costs of obsolete tech? Get in touch with the team by calling 03332 409 321 or emailing solutions@Jigsaw24.com. For the latest news, follow us on LinkedIn and Twitter. Alternatively, drop your details into the form below and one of the team will be in touch.

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