The Unexpected Pace of Technology Adoption

Every week we talk about new technologies and new trends. But studies show us that new technology adoption tends to be very slow, especially at high levels. What’s behind the inability of new tech to displace legacy tech?  

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SHOW NOTES:

• Why Enterprise software moves so slow, despite tech innovations (Matt Asay, TechRepublic)

IF IT AIN’T BROKE, DON’T FIX IT

For existing companies, most of the budget (typically 70-80%) is spent maintaining existing systems. New technologies are rarely used to replace existing technologies, but are usually additive. New teams and new processes are created, and those teams are often expensive (rare skills).

OUTSIDE OF CLOUD, THE COSTS OF CHANGE ARE DIFFICULT TO MANAGE

• The learning curve can be long, so companies often hire new talent. 
• For new technologies, talent is difficult to find, so often very expensive. 
• And new technology takes a while to mature, so the number of available use-cases is initially limited. 
• It’s not unusual for wide-spread adoption to take 3-5 years (if it succeeds).  
• Oftentimes, existing technologies will see a market disruption coming and add similar capabilities. 
• Many technology spaces have too many alternative options, so it can take a while before a “winner” emerges in the market. 

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