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The Real Cost of Old Technology

When discussing the true cost of old technology with regards to business we first have to look at the traditional view.  Business technology was meant to be purchased as cheap as possible until it failed and then replaced. This was in line with the greater organizational trend of cutting costs in order to maximize profit but it has become to be realized that retaining this view of technology in today’s business environment is potentially dangerous.  With regards to telecommunications, the phone system was looked at as the same type of commodity that should not be fully invested in and with no thought towards getting the most advanced technology.
old technology hurts resized 600 Today’s view is very different as there has been a fundamental shift in the way that organizations view their phone systems.  After decades of cutting costs to increase profits this process is no longer feasible as costs are as low as they possibly can get; the only way to be more profitable is to increase productivity. This viewpoint has changed how organizations value their phone systems in a profound way.  They are now beginning to invest in their phone systems with the understanding that new functionality, like Unified Communications and handheld device integration, can dramatically enhance their customer interaction and sales activity, which in turn improve productivity and revenue.  Another driving force behind this revaluation is the realization that those who do not adapt to the new environment run the risk of being left behind.

While being left behind by the competition is a key concern when using outdated technology, it is not the only one.  Many manufacturers have stopped supporting their older phone systems in favour of newer models, much like how Microsoft no longer supports Windows 98.  What this ultimately means is that should a problem arise with the system there may be nothing that can be done to resolve it.  Significant problems that can arise are wear and tear and expanding or moving the system.

As with any technology, phone systems are subject to wear and tear as time goes on.  The longer an older system operates without being replaced, the greater the risk of a significant failure.  If such as failure occurs with an out of support system the results could be disastrous as the accessories or software patches needed to fix the problem may be difficult to get a hold of, if not impossible.  This could result in significant downtime and, in turn, lost revenue.

Expansion is part of the natural evolution of an organization.  This can be something as simple as adding more employees or as complex as moving to a new facility.  Both of these actions, however, will represent a challenge for an organization with a phone system that is out of support.  This is because (much like in the event of failure) the components necessary to expand the system are unavailable and not supported through regular outlets.  Coupled with that the fact that older phone systems have issues with scalability and it means that expansions or moves will be extremely expensive, if not impossible. old technology hurts

As you can see, the overall the costs of operating a used or out of support phone system will be far more expensive than the cost of buying a new and fully featured unit up front.  This is due to the productivity gains of new features such as Unified Communications as well as the lack of lost revenue from upkeep of an old system.

At ECI, we’ve been supporting local businesses for over 15 years. ECI is Ontario’s premier provider of unified communications and with partners, ShoreTel, NEC, Rogers, Ruckus and Polycom we give your organization the edge in a competitive business environment. We also run promotions that provide substantial credits and discounts for customers who wish to upgrade to a new system. Contact us today to learn more!