10 reasons technical debt shouldn't just be the CIO's concern

A common myth is that holding onto legacy applications is ‘bad for business’. In actual fact, it’s not the applications causing issues because generally they work, but the obsolete and unsupported versions of Windows server or desktop operating systems they are running on.

A large number of organisations are dependent on Windows servers or desktops. The end of life for Windows 10 is fast approaching and due in October 2025 and Windows Server 2012 only has just over two years left in extended support – yet four in every five devices (82%) “are still not running on the latest operating system”.

Within this percentage, while accurate data on the types of versions used by businesses can be scarce, some reports give an approximate indication. StatCounter estimates that, as of mid-2024, Windows 10 holds nearly two thirds (65%) of global Windows desktop version market share – a significant amount – while even older versions like Windows 7 still account for about 3% of the market.

From surging maintenance costs to cybersecurity threats, this Windows-based technical debt can significantly impact business operations, revenue, reputation and overall success. In this light, it’s not just a concern for the CIO, but for the whole c-suite.

Here are ten reasons why:

1. Cost management and IT budget optimisation

Technical debt leads to higher maintenance costs for outdated systems, diverting resources from more strategic IT investments. It also results in inefficiencies, as older systems are often less reliable and require more frequent repairs or patches. McKinsey states this technical debt and the cost of rectifying such issues represents a substantial 40% of IT balance sheets.

2. Customer expectations and digital experience

Technical debt can negatively affect customer experience by limiting the organisation's ability to deploy modern, customer-facing applications and services. The majority of customers are used to interacting with digital tools and expect a faster level of service. Slow or outdated systems can result in poor performance and frustrate customers, leading to potential revenue loss.

3. Digital transformation

Digital transformation may seem like a dull subject to many people, but there’s a lot of work involved in doing it and it has real-world impact. Technical debt hinders digital transformation efforts by tying an organisation to outdated operating systems, making it harder to adopt new digital tools and platforms. This can slow down innovation and make it challenging to stay competitive.

4. Sustainability and ESG goals

As the climate crisis has an ever greater influence, organisations are under pressure to meet sustainability and ESG goals. Older hardware and software are less energy-efficient, contributing to a larger carbon footprint. Therefore, technical debt in this area can hinder efforts to implement green IT practices – and this can also impact brand reputation.

5. Cybersecurity threats and ransomware

As Microsoft’s own global outage in July illustrated, cybercrime is a very real and present threat. Obsolete systems are no longer protected by the latest security patches and updates, making them more vulnerable to cyberattacks and ransomware. Technical debt increases the risk of breaches and older systems may not support modern security tools.

6. Cloud strategy and security

Migrating to the cloud allows companies to remotely carry out patches and fix security defects. Technical debt can impede cloud migration efforts, as many obsolete servers are not cloud-compatible. This complicates the organisation's cloud strategy and can create a reliance on outdated on-premise, less secure and less scalable infrastructure.

7. Business continuity and resilience

Dependence on obsolete systems can compromise a business’s ability to respond to outages or failures. These systems are more prone to failures and may not integrate well with modern disaster recovery solutions, increasing the risk of downtime and operational disruptions – something particularly dangerous with the rise of data breaches and ransomware.

8. Compliance and data privacy

Outdated systems may not comply with current data protection and privacy regulations. This increases the risk of non-compliance, leading to fines and legal issues. Additionally, obsolete software might not support necessary encryption or data handling practices. All of this can harm a business’ operations, revenue and reputation.

9. Talent skills gap

Maintaining and supporting obsolete systems can require specialised knowledge that is now harder to come by. Emerging IT professionals are typically not trained on outdated technologies, making it harder to find affordable talent to oversee their maintenance.

10. Lack of AI deployment

While technical debt in Windows-based systems may not directly relate to AI, it can impact the ability to implement AI solutions effectively. Old infrastructure may not support modern AI tools, delaying AI adoption and limiting innovation.

Technical debt is a c-suite problem

While on paper technical debt seems like an issue under the jurisdiction of a CIO, these ten reasons show just how broad an impact it can have on a business. It extends beyond operational disruption and technical efficiency, with inefficient systems impacting a company’s services, customer experience, finances, security, sustainability and overall reputation.

Given how many organisations are, or soon to be, running on obsolete Windows operating systems, technical debt looks to be a growing issue. But the great thing is they don’t need to bin their business-critical legacy applications. They can transfer them to a modern operating system without needing to upgrade or modernise the apps themselves.

But if c-suite executives understand the risks of technical debt, they can play a vital role in making sure IT teams aren’t seen as an annoyance, but a way to make the business operate more smoothly and successfully as a whole.