Using Outdated IT Equipment
We know that law firms, healthcare practices and other businesses in Las Vegas can get so busy that they don’t keep up with the latest technology. But what often happens is that they get caught up going after new clients and patients, then look around and realize that they can’t handle the larger volume of work with the IT equipment they have.
Did You Know That Running Old Equipment Can Cost You In The Long Run?
Some believe that investing thousands of dollars in new servers and computers is beyond their budget. What they don’t realize is that investing in up-to-date technology makes it easier for their employees to get their work done each day.
In the end, the investment pays for itself with more being accomplished and completed on schedule. As your company develops a strong reputation for delivering projects on time and within budget, you’ll keep the business you have and get more referrals.
Outdated Technology Can Result In Downtime
How Much Does Downtime Cost?
An older server that keeps shutting down can cost you several hours of productivity each day. In a year’s time, this can add up to thousands of dollars in lost work hours. If you replace that old server with the latest technology, you’ll get better performance overall from your entire workforce.
Anytime your employees are sitting around waiting on an IT guy to repair their computers, you’re losing money. You still have to pay these employees, but they’re not able to work, or send out invoices.
Why not replace their old computers with the latest on the market? New computers have larger processors so your employees can work more efficiently. They have larger hard drives so you can store more information. Plus, they have the capacity to run those big software programs that many businesses require.
How Much Is Outdated Technology Really Costing You In Dollars?
Outdated technology causes frustration for your employees. There’s no telling how much time and effort they’re wasting trying to get IT equipment to run correctly.
For some, downtime can cost thousands of dollars per hour. You must take all of this into consideration when thinking about whether to replace old, outdated equipment.
What if you have one old server that keeps shutting down, and each time it does, half a dozen employees aren’t able to work. If you have an IT department, maybe they can get it back up and running within half an hour. This only happens once a week. But let’s look more closely at exactly what this costs just in employee salaries alone.
6 employees earning $20 per hour each = $120 per hour or $60 for 30 minutes
30 minutes of downtime each week for 50 weeks per year = $3,000
But you haven’t figured in the time it takes your IT department to get the server back up and running. You probably pay your IT people a lot more than $20 per hour.
3 IT people at $30 per hour = $90
3 IT employees working on this old server for an hour per week
$90 per week for 50 weeks = $4,500
So far, you’ve spent $7,500 on this single old server that really should be replaced. It isn’t performing well. It’s slow, and it can’t run the latest and best programs that organizations are using today.
You still haven’t figured in the cost of lost work, orders, customer service, or whatever these team members would have been doing if the server hadn’t broken down.
You can see by the above example that there are a lot of expenses that might not come to mind right away. You might simply be thinking that a few employees can’t work for a few hours each week when it’s actually a much larger problem than this. And we haven’t even talked about employee satisfaction.
Workers who have the best tools available and the optimal work environment are far more likely to catch errors. They’re more likely to do better work. They get more done each day with fewer frustrations. You can’t put a price tag on this.
When you can keep your employees happy, they’ll stay with your company. And everyone knows how expensive it is to hire and train a new employee.
Study after study has been done on this topic and they all agree that hiring and training one new employee can cost you around $4,100 and that it takes an average of 42 days to fill a position. Wouldn’t it be better if you could just keep your current employees happy so they aren’t looking around for a better situation?
Is Outdated Technology Impacting Your Data Security?
No network is entirely safe from hackers these days. So how do you minimize the chances that your network will get breached? You need the latest and best hardware and software, plus regular security training for all employees; even upper management.
Older computers, servers, and software are an easy target for hackers. Without up-to-date and a properly configured network infrastructure, your business will be vulnerable.
If everything isn’t constantly updated to combat the latest cyber threats, your data is at risk. Data breaches affect your business reputation and can result in litigation and penalties. HIPAA non-compliance can put your dental or healthcare practice on the HHS “Wall of Shame.” Some businesses are never able to recover from a serious data breach. Why take the chance?
Is Old IT Equipment Affecting Your Ability To Grow?
There are lots of other reasons to replace your old, outdated hardware and software. It’s much harder to expand your business. When you can’t meet the needs of your customers, clients and patients, they’ll go someplace else. Your competition will be able to take over your market share.
As with any emerging technology, it’s more cost-effective to replace equipment every few years than it is to struggle with outdated equipment.
The gains you’ll experience from upgrading your hardware, business phones and more will outweigh the cost of replacement.
The increased speed alone will justify the cost of upgrading. Once you upgrade, you’ll be glad you did. You’ll see a good return on your investment in the end.