New research from Techaisle has revealed old tech is having a serious financial impact on small business.
The research, commissioned by Microsoft and Intel, surveyed 415 small businesses in Australia. The study found the cost of keeping a PC more than four years old is over $5000 for each device – more than enough to replace the technology twice over.
The survey found SMBs that hung on to their old tech (computers four years old or older) were 3.3 times more likely to require repairs, leading to a loss of productivity.
“Technology is the productive engine for most SMBs in the region, especially where organisations rely heavily on their devices for their day-to-day tasks. However, 8 in 10 SMBs surveyed have PCs that are older than four years, which significantly increases maintenance costs,” said Neil Gordon, Director, Consumer and Devices Sales, Australia and New Zealand, Microsoft.
“With budget constraints being the number one IT challenge among SMBs today, it’s important to consider technology strategies so that they can maintain costs, while safeguarding their organisation from newer digital risks.”
Old technology was also the source of security risks for small businesses, as it fails to have many of the inbuilt security features of a modern device.
In the past twelve months,, 67 per cent of SMBs experienced PC security and data theft breaches, with only 22 per cent of them actually reporting these attacks.
“To put it simply, old technology is not equipped to withstand the cybersecurity issues that are now the norm in the business world of today,” said Gordon. “Interestingly, our survey results showed virus’ or other malware attacks and identity theft are the biggest PC security concerns among our small business community. This tells us Australian SMBs are aware of how advanced cyber-attacks have become.”
Respondents in the study identified their top business priorities as increasing profitability as well as business growth and reducing operational costs. The study highlighted that SMBs are looking at IT as a response to address their business issues. The top IT priorities included investing in cloud solutions, PCs and mobility solutions.
“SMBs constitute over 97% of businesses in Australia and employ more than 40% of the workforce in the country. They are intricately linked to large businesses, government departments and educational institutions as both suppliers and customers. We believe that if SMBs adopt a modern technology strategy, they can empower workers with greater flexibility and the ability to work on-the-go,” said Joshua Carr, Retail Sales Manager, Intel.
“Too often, we found SMB owners focus on short-term costs and while in most cases this approach is absolutely valid, at times it can lead to situations that cost them more. The choice between maintaining older technology and replacing them with newer technology is one such area,” said Anurag Agrawal, CEO & Analyst, Techaisle.
Those who move to technology immediately reap the benefits. The study found 70 per cent agreed new tech reduced their maintenance costs while 68 per cent suggested they felt better equipped to secure their business data. 71 per cent reported increased staff productivity while 70 per cent saw improved efficiencies due to new experiences powered by cloud and mobility solutions.