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How to create a technology replacement strategy

When you are considering the cost of your organization’s technology, you must consider its life cycle and make allowances not only for the purchase price of the technology but also its support costs.

Life cycle

Every mechanical device has a life cycle. In the early days of the device, there is a period of “shaking out” when a relatively large number of problems will be discovered. This’s why many mechanical devices go through a burn-in period at the manufacturer in an attempt to work out the problems. This is generally followed by a long period of relatively low problems. Finally, a gradual climb in support costs ensues.

Think of it like buying a car. If you have ever bought a new car, or have known someone who has, often the new car has a few kinks. After the first month or so, the car settles down and generally has few problems. Once the car has become a few years old, it begins to develop problems. The problems may be gradual at first but eventually, if you keep the car long enough, you begin to feel that it is nothing but problems.

The technology that you use in your organization is the same way. Every piece of technical infrastructure you have will work well at first, or at least well after the burn-in period, and then slowly start to deteriorate.

This is one of the reasons that older computers need to be replaced — even if they’re still operating fast enough for their users. Eventually, they’ll break down and will need to be repaired or replaced.

http://www.techrepublic.com/article/how-to-create-a-technology-replacement-strategy/