When technology development plans are considered and computer systems and other items are purchased, it is important to estimate the expected life span of the technology and develop a strategy to manage its obsolescence.
As improvement in computer technology accelerates, technology can be classed as 'obsolete' (in terms of the latest available developments) within a year or two of purchase. This likelihood needs to be taken into account when technology is purchased and deployed. A decision will need to be made as to whether to continue to use technology after it has become obsolete, or whether it is worth upgrading the technology to the current standard.
The main factor to take into account in this decision is likely to be budgetary. In many cases it may be uneconomic or unaffordable to upgrade technology on a frequent basis.
While the equipment currently in use is, in industry terms, obsolete, it may still be serving its intended purpose to an acceptable standard. In this case there may be no compelling reason to upgrade. On the other hand, if the technology is out of date to the extent that it is restricting productivity, an upgrade may be necessary. This could happen, for example, if the technology is incompatible with newer technology used by other systems or organisations with which it needs to be compatible.
For more detailed discussion on issues related to managing obsolescence, see Use or Disposal of Obsolete Equipment and Depreciation and Amortisation Policies
