It’s easy to skimp here and there when you run a business. After all, it isn’t cheap, and you have to make difficult decisions every day for where you’re prioritizing your spending. Your technology, particularly an outdated computer that has repeatedly failed, is one area where you cannot skimp on poor investments. If you’re not careful, that broken computer could be holding you back and costing you profit.
How much is it really costing you? Let’s investigate. How to Defy Moore’s Law In 1965, Gordon Moore, a co-founder of Intel, predicted that computing power would roughly double every two years. Moore’s Law was based on this idea and has been fairly accurate ever since. Moore’s Law, as you can probably imagine, is a big part of the reason why we now have powerful computers in smaller sizes than we used to. Additionally, it is the reason why all of the workstations you have purchased in the past two or three years are already out of date. However, for a business owner, and especially for a small business that adheres to the adage “If it ain’t broke, don’t fix it,” such a constant cycle through technology is impractical. That said, there are certain circumstances where you’ll want to invest in new technology more often.
Broken does not always appear the same. Even if your device isn’t “broken,” it could still be affecting your business in ways that cost you money and time, especially if it keeps accumulating problems that can’t be fixed. It’s a good idea to start thinking about how your technology is affecting the parts of your business that keep it going as we get closer to the end of the year. How the expenses accumulate If your company hasn’t upgraded its technology in a while, it might start to show signs of wear and tear. Tasks that take only a couple of minutes now could lead to hours wasted over the course of days, weeks, months, or even years, especially if you don’t address the problem.
Let’s look at how all of this adds up over time:
How much does outdated technology cost your company? If you assume that all these issues cost an employee 15 minutes of their day, and that they work your typical five-day workweek, that’s an hour and 15 minutes of work every week. This amounts to a loss of 62.5 hours annually, or a week and a half of productive time. Keep in mind that even if that time isn’t being used well, you are still contributing to salary and benefits. The real kicker is when you multiply that number by the number of employees you have. Suddenly, it becomes a considerable sum that could impact your budget. If you compare that figure to the price of buying new hardware, do you still think it’s not a good time to invest in it?
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Financial Costs Are Just the Beginning
Naturally, there are additional considerations that you will need to make. Your technology will no longer be supported by developers as it ages, preventing it from receiving security updates or patches. Cyberthreats could affect your company as a result of this. Furthermore, modern cybersecurity solutions depend on specific hardware being available, which means that older machines are just not going to be compatible any longer.
Plus, when your technology doesn’t work the way it should, the people involved will get more frustrated over time. If you are unable to meet the technological demands and expectations of the contemporary workplace, they may even leave. Make sure you take advantage of this opportunity to stand out and demonstrate your concern for the employee experience.
How Your Business Can Solve Its Tech Spending Issues
A refresh cycle, a strategic plan for when your technology should be replaced, should be implemented by your company. Here are some of the factors that a refresh cycle should include:
Predictable budgeting, preventing sudden costs, and allowing you to treat hardware acquisition as an operating expense.
increased output as a result of tools that are made to work effectively and meet their requirements. strengthened safety by making it compatible with recent security measures, reducing your risk substantially. A more positive workplace culture and experience support employee retention. We’ll help you put this refresh cycle into action. Hardware can be expensive, so you want to make educated decisions that benefit your business in the long run. When you don’t have specialized knowledge and experience, making these decisions on your own can be challenging. Directive has both and can help you start from scratch with your company’s refresh cycle. Call us right now at 607-433-2200 to learn more.
