Updating outdated software could save your business money. Heres why

Last Updated on March 10, 2024 by Robert C. Hoopes

Outdated Technology costing US Businesses Billions in Cybersecurity Failures

A recent column in the Wall Street Journal has revealed that outdated technology in the US is having a massive impact on businesses, costing a staggering $2.41 trillion a year in cybersecurity and operational failures. The problem, known as “technical debt,” is characterized by an accumulation of quick fixes and outdated systems that desperately need to be updated.

Small and mid-sized businesses are among the worst offenders, still relying on obsolete technology such as Office 97, desktop versions of QuickBooks, and outdated contact managers like ACT and GoldMine. Many businesses are also running outdated client-server applications on Windows machines and continuing to write paper checks to suppliers.

The decision to upgrade or replace technology is a difficult one for many businesses, as they have already heavily invested in their current systems. However, the consequences of not modernizing their technology could be dire, especially for business owners over the age of 50. More than half of small business owners in the US fall into this age group, and the outdated technology they are using could significantly impact the valuation of their businesses when they look to sell.

Experts are advising business owners looking to exit their companies in the next decade to prioritize upgrading their technology to avoid losing out on the value of their business. By investing in modern technology, businesses can not only avoid cybersecurity risks and operational failures but also increase the overall value of their companies in the long run.