‘‘It’s not technology obsolescence, It’s product obsolescence’’

Technology

obsolescence or change in technology seems to be visible at two fronts–desktops

and operating systems. While the change in desktops is being led by the

introduction of newer chips by Intel, on the operating front, Microsoft is

launching new versions at a rapid pace. So, as the product roll over happens, we

tend to call it obsolescence in technology. Actually, it is not technology

obsolescence but product obsolescence. In fact, it has become a part of business

strategy to have obsolescence built in into the machines or software so that the

company can drive in volumes through upgrades. However, if we look at products

like Unix, we are talking of a typical life cycle of at least three years. Also,

people don’t change platforms too often. Even in cases where they have to,

there is a graceful waof migrating.

But there are changes in technology taking place much beyond these that force

the companies to look ahead of their current way of working. So, if a person or

a company is working on conventional systems–distributed or centralized–today,

they are shifting towards the Internet-based system. This is a bigger

technology-driven shift. This will have a deeper impact than the changing boxes.

All brick and mortar companies will have to move to the Web and devise ways of

getting information, data and commerce through it. Companies are also looking

ahead at newer IT applications, from CRM to SCM, that is changing their entire

business processes. All this requires not only huge investments but also a

change in one’s approach towards IT.

The bigger challenge is about tackling new technologies like the Internet.

Such technologies do not limit themselves to a particular sphere of life.

Instead they lead to a paradigm shift in every aspect of human life, including

the way one does business. Companies are fast realizing that managing such

fast-changing technological environment is a time consuming and costly affair

that could divert them from their core competencies. Hence, there is an

emergence of the outsourcing concept where a company can lease the entire IT

infrastructure from a third-party provider. While the concept of such

datacenters is gaining popularity in the West, it is picking up in India too.

The bigger concern, therefore, is to manage such obsolescence rather than those

of the technology itself.