Cost Comparison: Keeping Old Tech vs Upgrading to New

by Jon Lober | NOC Technology

The hidden price tag:

Why outdated tech costs more than you think

Businesses holding onto aging technology to save money are actually spending more in the long run.

For companies with 50+ employees, maintaining outdated systems beyond their recommended lifecycles creates a cascade of hidden costs that far exceed the price of regular refreshes. With Windows 10 reaching end of life in October 2025, businesses face a critical decision point that will impact their bottom line, productivity, and security posture for years to come.

The true cost equation

Outdated tech vs. regular refresh cycles

Maintaining outdated technology appears cost-effective on paper—you've already paid for it, so why replace what still works? This surface-level analysis misses the exponential growth of hidden costs as hardware ages. For a typical 100-employee company, the financial difference between these approaches is striking.

Maintenance costs skyrocket by 148% by year 5 and up to 300% by year 7 compared to earlyyears in a device's lifecycle. Meanwhile, server failure rates climb steadily: 5% in year one, 11% by year four, and exceeding 15% after year five. This translates to more frequent downtime, with each incident costing mid-sized businesses approximately $300,000 per hour.

The math becomes clearer when examining total cost of ownership (TCO). Equipment in the 5-7 year age range requires nearly four times more support than newer systems.

Windows 10 End of Life

A looming deadline with serious implications

On October 14, 2025, Windows 10 reaches its end of life, creating significant costs and compliance issues for businesses that don't transition to Windows 11:

Category	Maintaining Windows 10	Migrating to Windows 11
Security Updates	Year 1: $61/device, Year 2:$122/device,Year 3: $244/device	Included in standard support
Hardware	No immediate costs (but 40-50% of PCs incompatible with Windows 11)	$1,000-1,500 per device requiringreplacement
IT Support	Increasing costs for compatibility issues	40% reduction in OS-related help desk tickets
Security incidents	53% higher on 4+ year old systems	62% reported drop in security incidents
Migration	Migration eventually required anyway	$30-40 per device implementation costs
ROI	Negative as costs increase yearly	250% ROI over three years

For organizations unable to migrate immediately, Microsoft offers Extended Security Updates (ESU) available at escalating costs: $61 per device in year one, but doubling each subsequent year. Cloud-managed devices receive a 25% discount, while Windows 365 Cloud PC users get the first year of updates at no charge.

Real-world example

A professional services firm with 75 employees might adopt a hybrid approach—upgrading 40% of Windows 11-compatible devices, replacing 30% with new hardware, and maintaining 30% on Windows 10 with ESU. Their total migration cost comes to $62,000 (including $14,000 for ESU over two years) which proves more economical than delaying the transition completely.

The productivity tax

Quantifying time lost to outdated systems

Outdated technology imposes a hidden productivity tax that compounds daily across your workforce:

16-46 minutes lost daily per employee waiting for slow systems.
91-95 hours annually (over 2 work weeks) resolving IT issues
$2,175-$13,200 per employee annually in lost productivity
51% of employees at "technology laggard" organizations express frustration

For a 100-person company with employees earning an average of $35/hour, this translates to over

$200,000 in annual productivity losses—enough to finance a comprehensive technology refresh program.

Financial services and healthcare workers are particularly impacted, losing approximately 23-24 minutes daily (100+ hours annually) to outdated technology. Manufacturing companies implementing modern technology see production systems up to 30% faster and 25% more efficient.

Case studies consistently demonstrate ROI of 200-265% from technology upgrades, with productivity improvements of 15-30% being common across industries.

Cybersecurity

The costliest risk of all

The security implications of outdated technology create perhaps the most significant financial exposure:

84% of companies have high-risk vulnerabilities that could be eliminated with simple updates
60% of data breaches are caused by failure to apply available patches
Organizations with poor patching are seven times more likely to experience ransomware
Average breach cost reached $4.88 million in 2024, up 10% from 2023
Medium-sized businesses with outdated technology lose 54% more money ($114,000 vs.$74,000) following breaches
Cyber insurance premiums increased 50-100% for organizations renewing coverage in 2023-2024

Outdated systems take longer to detect breaches—averaging 199 days to identify and 73 days to contain, compared to the global average of 194 and 64 days respectively. This extended detection time directly increases costs, with breaches exceeding 200 days costing $4.87 million versus $3.61 million for breaches contained under 200 days.

Beyond direct breach costs, outdated technology affects regulatory compliance and insurance coverage. Many insurers now exclude coverage for breaches resulting from unpatched vulnerabilities, while regulations like GDPR, HIPAA, and PCI DSS explicitly require prompt patching and up-to-date systems.

Current technology costs vs. ongoing support expenses

The price of new business hardware in 2025 must be evaluated against the escalating support costs of aging equipment:

Device Type	2025 Cost Range	Annual Support Cost (New)	Annual Support Cost (5+ years old)
Budget Business Laptops	$500-900	$30-50 per device	$150-200 per device
Mid-Range Business Laptops	$900-1700	$50-75 per device	$200-350 per device
Premium Business Laptops	$1700-2500	$75-100 per device	$450-450 per device
Mobile Workstations	$1,800-4,000+	$100-150 per device	$400-600 per device
Business Desktops	$600-1,800	$40-80 per device	$160-320 per device
High Performance Workstations	$1,800-5,000+	$100-200 per device	$400-800 per device

For organizations with 50+ employees, volume pricing discounts typically range from 10-15%, with deeper discounts available for larger deployments. Most manufacturers offer financing solutions, including direct purchase, financing (often 0% interest for 12-36 months), and device-as-a-service options that include support and regular refreshes.

Importantly, leasing/DaaS options are typically 15-30% cheaper than outright purchase over a 3-year period when factoring in all lifecycle costs.

Industry standard refresh cycles and best practices

Research consistently shows optimal refresh cycles vary by device type and usage intensity:

Desktops/Laptops: 3-4 years standard (2-3 years for high-performance workloads)
Servers and Storage: 3-5 years
Network Infrastructure: 5-7 years
Mobile Devices: 2-3 years (smartphones), 3-4 years (tablets)
Peripherals: 5-6 years (monitors), 5-7 years (printers/scanners)

These cycles reflect the point at which maintenance costs begin to exceed replacement costs. J. Gold Associates found that companies on a 2-year upgrade cycle experience productivity improvements ranging from 4.49% to 11.57%, yielding average annual savings between $5,077 and $13,103 per employee.

Industry best practices for technology lifecycle management include:

Structured Approach: Implement formal planning, procurement, management, and retirement processes
Staggered Refresh: Balance budget impact and implementation resources with manageablephases
Strategic Segmentation: Match refresh cycles to user needs (power users vs. task workers)
Hybrid Financial Model: Consider leasing for rapidly-evolving tech, purchasing forinfrastructure
Sustainability Integration: Balance environmental impact with performance requirements

ROI calculations: Making the business case

Calculating the ROI of technology refresh cycles requires considering both direct and indirect factors.

Basic ROI Formula: ROI = (Net Gain from Investment / Cost of Investment) × 100%

A comprehensive TCO/ROI model should include:

Direct Costs

Initial acquisition
Implementation
Training
Support and maintenance
Licenses and subscriptions
Energy consumption
Disposal STORViX

Indirect Benefits

Productivity improvements
Reduced downtime
Enhanced security posture
Improved employee satisfaction
Competitive advantage
New capability enablement

Comparing the true costs

Old tech vs. refresh cycle

When all factors are considered, the comparison between maintaining outdated technology versus implementing a regular refresh cycle becomes clear.

Cost Category	Maintaining Old Tech (5+ years)	Regular Refresh Cycle (3-4Years)
Hardware Acquisition	Lower upfront costs	Higher upfront costs but predictable
Maintenance	Increases 148-300% by years 5-7	Covered by warranty/support contracts
Downtime	15%+ annual failure rate	5-8% annual failure rate
IT Support Costs	4x higher support costs	Standardized, efficient support
Productivity Loss	16-46 minutes daily per employee	Minimal productivity impact
Security Risk	7x higher breach risk	Current security protections
Insurance Premiums	50-100% higher	Standard market rates
Energy Costs	30-50% higher power consumption	Energy-efficient hardware
Regulatory Compliance	Potential non-compliance penalties	Simplified compliance
Total Annual Cost (100 employees)	$350,000-$500,000	$180,000-$250,000
3-Year Total Cost (100 employees)	$1,050,000-$1,500,000	$540,000-$750,000

The growing cost differential between these approaches illustrates why maintaining outdated technology creates a false economy. While delaying refreshes appears to save money initially, the long-term costs—direct and indirect—significantly exceed the investment required for regular updates.

Conclusion

The data clearly demonstrates that maintaining outdated technology creates substantially higher costs than implementing strategic refresh cycles.

For businesses with 50+employees, the approaching Windows 10 End of Life deadline in October 2025 presents both a challenge and an opportunity to reassess technology strategies.

Organizations that implement 3-4 year refresh cycles experience reduced maintenance costs, higher productivity, fewer security incidents, and better employee satisfaction. This proactiveapproach not only delivers measurable ROI but positions businesses to remain competitive in an increasingly technology-dependent marketplace.