Upgrading Systems
Businesses have always had to deal with system upgrade decisions - whether it be in the realm of hardware or software. In the world of constantly evolving information systems, developments proceed in a yin and yang process. At one side, power-hungry and information-crunching software creates the demand for monster hardware. On the other side, overqualified hardware with its abundant computing power allows the improvement of complex software.
Upgrading is a balancing act between cost and risk. As Michael Hillenbrand puts it, managers want to know how much will it cost if I upgrade (cost) and what can happen if I don’t upgrade (risk)?
Many decision-makers (read: managers and accountants) are put off by the cost involved with upgrades:
- Licensing Costs (per machine, per account, per head, per processor, etc.)
- Training (new way of doing things might mean re-training existing users)
- Interruption to Business (installation of hardware and software might cause some downtime during deployment)
- Actual Costs (Planning, Implementation, Support for new system and process)
However, for some, upgrading can address several business concerns too:
- Support (When is the End-of-Life product support of the software? Is the hardware still available? Some legacy software are machine-dependent)
- Compliance (Is our software compliant with our third party supporting software? Will our existing systems pass security and functionality audits?)
- Competitive advantage (Actual benefits that we get from using the new software or hardware [less effort or time needed to provide same or better quality of work] )
With the high impact of software and hardware that we use in our work, knowing the reasons why and why not to upgrade is essential in keeping your business profitable.