In the year 2000, the popular video rental chain, Blockbuster, was approached with a proposal to buy the DVD-by-mail service company, Netflix. Blockbuster famously declined the offer. Fast forward to later years, all but one of Blockbuster’s stores were shut down. Meanwhile, Netflix pioneered online media streaming and grew to be the number one streaming service in the world.
Blockbuster’s’ tale is a poignant reminder of the real impacts of outdated technology. As we turn to the next digital transformation, largely driven by artificial intelligence (AI), consider the lesson learned from Blockbuster: competitive advantage comes from leveraging up-to-date technology.
Hanging onto aging hardware, software, and systems presents issues beyond general equipment glitches or software delays – with outdated tech, companies are vulnerable to competitive disadvantages, operational inefficiencies, information security risks, and talent attraction and retention issues. The best prevention is to ensure technology and equipment are up-to-date. Let’s explore four benefits to keep “vintage” to personal items, and not business technology.
Elevating Your Competitive Edge
Companies focused on strengthening their competitive position must carefully evaluate how outdated technology may affect their business. “Vintage” tools, programs, and equipment can result in higher maintenance costs, more frequent breakdowns, and as a result, higher downtimes.
Embracing up-to-date tools can position companies to offer improved products and services, and therefore, stand out amongst competitors. Here’s how:
- Modern technologies often require fewer maintenance costs and repairs, and with AI-integration, can now offer predictive maintenance support. Imagine predicting potential problems with your equipment and receiving recommended preemptive actions to prevent an issue from materializing.
- Newer tech reduces downtime, boosts efficiency, extends the lifespan of equipment, and keeps maintenance costs in check.
- Outdated technology hinders a company’s ability to meet the expectations of customers who expect efficient and seamless services, not buggy systems, bogged-down platforms, and outdated equipment. Up-to-date technology can deliver and enhance the ideal customer experience.
Accelerating Operational Efficiency
Efficiency stems from streamlining processes, automating tasks, and enhancing productivity — all typically made possible through up-to-date technology. Adopting newer technology to streamline operations and automate repetitive tasks can empower employees to work more efficiently and confidently.
Upgrading systems provides an opportunity to improve time-worn and inefficient processes. Take Microsoft innovations, for example. In October 2025, the technology giant will no longer provide security updates and technical support on PCs running Windows 10. Additionally, Windows 10 will no longer support Microsoft 365 applications. This change means companies relying on Windows 10 for their productivity tools will need to adapt and CFOs will need to plan for the cost of upgrades, transitions, and other aspects to transform.
Attracting and Retaining Top Talent
Top performers seek tech-forward workplaces, and companies that invest in the up-to-date tools of the trade attract and retain skilled professionals. Employee satisfaction includes using the best available technology to facilitate productivity and efficiency. When employees and systems can operate in tandem, companies run more easily, customers are satisfied, and employee turnover rates are down.
As we look to next-generation services, upgraded systems serve as a platform for investing in advanced services like analytics and AI, which, in turn, may translate into growth opportunities. Talented employees will seek to work with the best and attracting them requires up-to-date tools and equipment.
Increased Information Security and Risk Management
Information security and cybersecurity may not have been common terms around the days of Blockbuster, but they are relevant for many companies to abide by today and will continue to be even more so in the future. “By 2026, Gartner® predicts that organizations prioritizing their security investments based on a CTEM [continuous threat exposure management] program will realize a two-thirds reduction in breaches.” Risk management and cybersecurity trends are an ever-evolving investment, but one worth performing to help prevent costlier cyberattacks.
The importance of remaining up-to-date with modern technology cannot be overstated. In today’s fast-paced business environment, embracing technological innovation isn’t just an option – it’s a necessity. Sometimes, financial challenges like cash flow and liquidity can prevent companies from investing in the technology needed. How can companies overcome these challenges?
A trusted partner for technology financing
DLL’s dedicated Technology team specializes in flexible IT financing programs and Lifecycle Asset Management that help minimize technology obsolescence and reduce unnecessary IT expenses, for customers, manufacturers, dealers, and resellers.
We empower partners with tailored financing solutions, like our DaaS (Device-as-a-Service) CORE program. This initiative not only functions like traditional financing, but supports companies in addressing the full spectrum of device lifecycle challenges they and their customers may face, such as device acquisition and update challenges. It also ensures customers can optimize their IT budgets, upgrade to the latest technology, and enhance their spending power.
A key feature of DaaS Core is the IT asset disposal (ITAD) services embedded within our agreements. DLL takes the lead in providing secure, efficient end-of-contract options, including prepaid packaging or bulk pick-up, ensuring a seamless transition to the devices’ second life.
Although technology obsolescence poses a substantial challenge to business health, it need not be an impediment. Working with a financing partner can address these challenges, leaving the outdated behind and paving the way for growth and innovation.
Contact us to learn more.
Gartner Press Release, Gartner Identifies the Top Cybersecurity Trends for 2024, February 2024.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
