The world of technology is constantly evolving. New advances in software and hardware can make a big difference in how a business operates and how successful it becomes.
However, many businesses are still using legacy technology that is no longer effective or efficient. This isn’t just a matter of not being up-to-date with the latest trends; it can actively hold your business back, preventing you from capitalizing on new opportunities and hampering your ability to compete.
That said, here are some ways legacy technology can be detrimental to your company:
1. Legacy systems can be difficult to integrate with new tech and data.
A legacy system is designed to work in a specific way and may not have the flexibility needed to integrate with newer technology or handle new data formats.
For example, if you’re using an old customer relationship management (CRM) system, it might not be able to connect with newer versions of other software you’re using, including your accounting software.
This can make it difficult to get a complete picture of your business and make data-driven decisions.
2. Remote work arrangements require newer technology than some legacy systems can support.
If your business has remote work arrangements, the technology you use to support them is likely more complex than what’s needed for an office environment.
Remote workers need access to all of the same resources as their in-office counterparts, but they also need secure infrastructure in place that can be accessed remotely. This might include a virtual private network (VPN), cloud-based storage and applications, and video conferencing capabilities.
Without these, it can be difficult for remote workers to do their jobs effectively, which can impact your business’s bottom line.
3. Most legacy software is vulnerable to threats.
As software ages, it becomes less capable of defending against new security threats. Unfortunately, this can leave your business at risk of data breaches, malware attacks, and other cyber threats.
Today, it’s easier than ever to crack a company’s security defenses and access sensitive data. As a result, even the world’s biggest and most technologically-advanced companies, such as Equifax and Yahoo, have been victims of major data breaches.
Now imagine what a smaller company with fewer resources and outdated security software would be up against. If you’re in a field that deals with sensitive data, such as healthcare or finance, this is an even bigger concern.
4. Legacy software can shut you out of certain industries.
In connection with the point above, certain industries have strict requirements for the technology that can be used.
For example, the healthcare industry has to comply with the Health Insurance Portability and Accountability Act (HIPAA). Not only does this mean using specific software, but it also requires ensuring that all data is stored and transmitted securely.
Another example is the payments industry. If you want to accept credit and debit card payments, you need to use a point-of-sale (POS) system that’s been certified by the Payment Card Industry (PCI).
If you’re using legacy software that doesn’t meet these requirements, you may not be able to do business in these industries.
5. It’s expensive to update legacy systems.
Sure, you won’t have to pay for new software upfront, but you will have to invest time and resources into maintaining your legacy system. This can be costly, especially if you need to hire outside help to do it.
Some legacy software also requires specific hardware, which can be challenging to find and expensive to replace.
For example, if you’re using an older version of Microsoft Windows, you may need to find and purchase a new copy of the software, as well as new hardware that’s compatible with it.
Add the cost of downtime, security breaches, employee training, and lost productivity, and the cost of using legacy software can quickly add up.
6. Using legacy software can damage your business reputation.
Your business’s reputation is important. It’s what customers and clients think of you, and it can have a big impact on your bottom line. How you use technology and adapt to change can be a reflection of your business and its values.
If you’re still using legacy software while everyone else has moved on, it can make you look behind the times. It can also make it difficult to attract and retain top talent, as potential employees may view your business as being stuck in the past.
What’s more, if you’re using legacy software that’s not well-maintained or lacks features and functionality, it can make your business look unprofessional. This can damage your reputation and make it harder to win new business.
7. Legacy software can turn off highly-qualified applicants.
When you’re hiring, you want to attract the best and the brightest. Many job seekers today are looking for modern, forward-thinking companies that are using the latest technology.
No one wants to work for a company that doesn’t understand the importance of keeping up with the times.
Final Thoughts
With the constant growth of technology and the never-ending evolution of software, it’s easy to see why legacy systems are no longer viable. If your business is still clinging to outdated infrastructure and applications, then you’re missing out on some major opportunities.
If you’re ready to move on from legacy software, companies like Argano can help you modernize your business and take advantage of the latest technology. They can help you streamline your processes, improve your efficiency, and stay ahead of the competition.
