Why Businesses MUST Budget for Hardware and Software Refresh Cycles

The Risks of Relying on Outdated Technology and the Need for Regular Refreshes

In today’s fast-paced digital landscape, businesses rely heavily on technology to maintain productivity, efficiency, and competitiveness, even if they don't realise it. 

I was once told by a builder he had no use for IT as he couldn't hammer in nails with a laptop.  I asked how he did his invoicing which was the light bulb moment when he realised that whilst his perception was that he didn't use IT, perhaps it was actually one of the most crucial components of his business.  Without computers, he couldn't invoice, without invoicing, he wouldn't get paid.

But, many organisations fall into the trap of over stretching their hardware and software way beyond their intended lifecycles, often due to perceived budget constraints or a reluctance to change.  I say perceived budget constraints for the following point, if you could increase the productivity of your staff by 20%, wouldn't that be worth the investment?  If you have 5 staff working flat out, on slow equipment and you thought you needed an extra member of staff staff to help, what if each of the 5 increased productivity by 20%, you'd get the same output of six people on the old kit, that five are now producing. 

The old adage "if it ain't broke, why fix it" has been used often when in discussion around hardware and software upgrades but it is a foolish position because even if something does work, it may be slow and having a huge negative impact on your business.  A horse and cart works, but you wouldn't necessarily use it for deliveries because it is slower than a van, the same goes for older computing tech. 

Running older technology can also have far-reaching negative consequences — especially when it comes to cyber security and the overall productivity of the business.  

More organisations want businesses to be Cyber Essentials or Cyber Essentials Plus certified, which you can't do on older hardware or software, it needs to be in manufacturer support life cycles.

The Importance of Managing Technology Lifecycles

Every bit of hardware and piece of software has a built-in finite lifespan by the manufacturer.  IT is an ever moving feast of change and updates.  Faster hardware, additional functionality in software, removal of out of date functions or features that are no longer used because something else done it better and faster.  

Manufacturers regularly release updates, patches, and new versions to address emerging threats and improve performance.

By having a hardware and software lifecycle plan, businesses can ensure that their systems remain reliable, secure, and capable of meeting current demands.  Regular refreshes — planned upgrades or replacements — are more than just an IT best practice; they’re essential for risk mitigation and business continuity as well as getting the most out of your staff through improved productivity.

Risks of Using Outdated Hardware and Software

Running a business on old, slow equipment and obsolete software can dramatically reduce productivity. Employees may face frequent system crashes, long loading times, and compatibility issues, all of which hamper efficiency.

More critically, outdated systems are a magnet for cyber threats. Unsupported software no longer receives security updates, leaving vulnerabilities exposed and open for exploitation by cybercriminals. Similarly, ageing hardware may not support the latest security features, putting sensitive business data at risk.

Think about it, why pay someone to do their job slowly when with a little investment you can increase their productivity with faster hardware and software, meaning they can do more in the time they have. 

Security Implications: A Clear and Present Danger

Cyber security is a top concern for businesses of all sizes. Hacker are using more sophisticated tools to identify threats so why would you make their lives easier by running out of date hardware and software? 

Hackers actively target businesses using legacy technology, as these systems often have well-known weaknesses which are often published by the manufacturer to encourage people to upgrade, so they don't even have to do the leg work to find the flaws, there is a catalogue published regularly by the manufacturers.

Ransomware, data breaches, and malware infections are far more likely when security patches are no longer applied, and endpoint protections are outdated, which is what happens when software or an operating system go out of support with the manufacturer.  They will only support a product for a finite time, encouraging you to upgrade regularly to plug those security holes, but once the software gets over a certain age, it is not financially viable for the manufacturer to keep supporting and fixing it, meaning people still running old, out of date software, will be vulnerable to attack.

The financial and reputational damage from a successful cyber attack can be devastating, far outweighing the cost of regular technology refreshes.

Upgrade Issues: Why Regular Updates are Essentials

Software manufacturers expect users to only be one or two versions behind the current in support edition of their product, if you leave it too long to upgrade your systems, there may not be an easy path to getting to the latest version.  Another risk is that a large revision change, going from something several revisions behind to the current version, could corrupt the data.  There are often processes that alter the data held in software when upgrading, it will prepare the data to a new format for the latest version, but if the step change is too big, the alterations to the data may be too great resulting in corruption.  It is common to find that if you upgrade a bit of software that you have to upgrade to each version in between the old version the business is on, to the latest version of the application.  The risk here is what if the versions between the old one and the latest version are not available to carry out the stepped upgrades?

Budgeting for Regular Refreshes: A Strategic Investment

While it may seem cost-effective to delay hardware and software upgrades, the reality is quite the opposite. Unplanned downtime, emergency repairs, and the fallout from security incidents can be far more expensive than a proactive refresh strategy. By budgeting for regular technology updates, businesses can spread costs predictably, reduce risk, and empower their teams with the tools they need to succeed. A well-managed lifecycle ensures compliance with industry standards and demonstrates a commitment to data protection — vital in today’s regulatory environment.

What does this mean for your business

Prioritising hardware and software lifecycles is not just about keeping up with the latest trends; it’s about safeguarding your business from avoidable risks and ensuring long-term success.

Planning and budgeting for regular refreshes means that organisations can avoid the pitfalls of outdated technology, maintain that enhanced security that comes with current software and hardware, and allows the organisation to maintain a competitive edge in an ever-evolving marketplace.

If you would like to find out more about asset management and lifecycle budgets, call us on 01722 411 999 and we can discuss what options are available for your business to keep your environment up to date and secure.