The Hidden Risks of Relying on Outdated On-Premise Systems

For many organisations, on-premise systems have long been the backbone of daily operations. They’re familiar, they’re “in control,” and for years they have delivered reliable results. But as technology and business environments evolve, continuing to rely on outdated on-premise systems creates risks that are far greater than many leaders realise.

Security and Compliance Vulnerabilities

When software falls out of vendor support, it no longer receives the critical updates and patches needed to stay secure. This leaves organisations exposed to known vulnerabilities that cyber criminals actively exploit. The 2017 WannaCry ransomware attack, which crippled parts of the UK’s National Health Service, spread rapidly through unsupported Windows systems and forced hospitals to cancel appointments and divert patients.

Beyond ransomware, unsupported systems also pose compliance risks. Regulatory frameworks increasingly require businesses to demonstrate robust controls for data security and privacy. Running critical systems on outdated infrastructure makes compliance harder to prove, putting contracts and reputation at risk.

Downtime and Dependency on Key Staff

When something goes wrong with an older system, the fix often depends on a shrinking pool of people who still know how it works. If that knowledge sits with one or two staff members — or even a single external consultant — downtime can stretch from hours to days. The business impact of such delays can be significant, particularly when customers, suppliers, or regulators are left waiting.

Hardware itself is another weak point. As physical servers age, so do their disks, memory, and power supplies. A hardware failure in an on-premise system can take out critical business functions until a replacement is sourced, configured, and restored.

Inability to Scale with the Business

Modern organisations need systems that grow with them. Outdated on-premise systems are often rigid and expensive to scale. Adding new users, integrating with other platforms, or supporting remote work usually means costly hardware upgrades, lengthy projects, or in some cases, it’s simply not possible.

This lack of flexibility can leave businesses unable to seize opportunities or adapt to unexpected change. During the COVID-19 pandemic, for example, many organisations found themselves hamstrung by their on-premise systems when trying to support a sudden shift to remote operations.

SaaS as a Safer Alternative

Software-as-a-Service (SaaS) provides a more resilient and flexible model. Cloud providers handle updates, security, and infrastructure, reducing the risk of downtime or unsupported systems. For business leaders, this means more predictable costs, easier compliance, and the ability to scale without large upfront investments.

While not every system will move to SaaS overnight, it’s worth considering whether your reliance on on-premise systems is creating more risk than reward.

Next in the series

Discover why many organisations are choosing cloud-based systems over outdated on-premise solutions.

Why More Businesses Are Moving to SaaS in 2025