Why Old Technologies Exist in Business Today

The NYTimes had an interesting article discussing some of the reasons why we can still find old technologies like the mainframe still kicking around in many business environment.

What are some of the characteristics that allow an old technology to stand the test of time? One characteristic is the ability to adapt. For example the mainframe was seen as old technology but it is still widely used in the financial industry. IBM was able to adapt to the changing technological landscape by adding Linux on the mainframesupport. If you remember the PC was supposed to eliminate the need for mainframes, but this is clearly not the case. The mainframe business is a very lucrative one for IBM.

Other technologies that are still around include older programming languages like Fortran and Cobol. Don't forget about VMS and VAX. Many shops still depend on this technology to perform vital business functions.

Often we find it difficult to leave an old technology because of legacy reasons. These could include hardware incompatibility, skilled workers required, and corporate culture. But usually it has to do with cost justification. Many of these old technologies do the job they are supposed to and to move to something different just because it is considered innovative, in some cases, is not justifiable from the business point of view.

New innovations are often seen as superior to old technology. Just because a technology is innovative doesn't mean it is better for the business. Many innovations today are seen as a break from the past, but in reality they are just a modification of an existing technology. True innovations are rare, and are usually the hardest to implement.

Ultimately it is the business that decides which technology is valuable and worth pursuing. As the Harvard Business historian Richard Tedlow said "The rise and fall of technologies is mainly about business and not technological determinism".

There are many cases though where business leaders are clueless to how new technology can impact their business. This is where you need strong leadership from technology professionals. They need to be able to articulate the benefits in a way that the business folk can understand them. In many cases bridging this communication gap is the real reason why old technologies last.

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