There are a number of reasons that drive technology refreshes. We’ve summarised some of the key ones as follows…
As organisations continue to use dated technology, they often land in situations where they are stuck with out-of-support technology components. This happens due to the product vendor upgrading its technology stack and subsequently not supporting the older versions in an effort to migrate all their customers to their supported stack.
Skill set shortage
As technology advancements continue, the focus keeps shifting to the newer breed of technologies. Even the academia focuses on the newer technologies than the legacy technologies. This slowly causes a skill set shortage as the people who know the legacy technology become lesser in number and getting skilled resources becomes an issue.
Regulatory compliance is mandatory for all organisations. With physical boundaries diminishing and access to information becoming easy, the chances of security breaches are also increasing. This forces organisations to develop controls and procedures which will prevent any security leak and will ensure all the established controls are in place to fulfil compliance. As the technology component enters into a phase of obsolescence and the existing vendors stop supporting it, these components become vulnerable to compliance requirements.
Organisations think “technology refresh” decisions are “high investment” items. On the contrary technology refresh helps in reducing the operational spend and enhances the organisation capability, which in turn helps to lower the unit cost of IT. With the passage of time, legacy technology becomes expensive on account of its maintenance cost.
In today’s business environment, mergers, acquisitions and consolidation have become the mantra for growth. Mergers and Acquisitions often bring together diverse technology components which the new organisation has to manage and decide what the future strategic platform will be. Organisations start considering standardisation of diverse technology components into strategic ones and look at technology refresh as a way to achieve their standardisation goals.
Organisations scan the technology environment constantly to evaluate the marketplace for the innovations and development happening in an effort to improve their competitive positions. As they find newer technologies which can provide better competitive advantage, they start considering “technology refresh” as a strategy to migrate to newer technologies.
Vendor stability is one of the key factors which drive “technology refresh” considerations. Organisations always want to use products from vendors who have good market standing and are stable. If the vendor stability becomes an issue then it affects their ability to invest and grow the products that they have which in turn creates issues with competitiveness.
Here at Computer Merchants we understand that change can be daunting and complex. Our team are well placed to help you navigate your options and we can work with you to tailor a solution that meets your requirements.