BY NELSON S. VILORIA
Technology consultant
In today’s fast-paced technological landscape, small and family businesses often find themselves at a critical juncture. The relentless influx of new hardware and software can be quite overwhelming. The objective is to equip your business with the right tools without incurring excessive costs.
This article will inform you about the key considerations for making informed technology investments, ensuring you achieve the best value for your money.
The unrelenting march of progress: Moore’s Law and its impact
At the core of this rapid advancement lies Moore’s Law. Coined by Gordon Moore, the co-founder of Intel, this principle asserts that the number of transistors on a microchip doubles approximately every two years. This results in exponential increases in processing power and storage capacity. While it may not be a strict law anymore, the principle remains relevant. New technology emerges at an astonishing rate.
For businesses, this implies that the hardware and software you acquire today are likely to become outdated in a few years. This is why a strategic approach to technology acquisition is essential.
Decoding software versions: A guide to understanding releases
Software updates are a constant presence. Understanding the naming conventions of these updates is critical for making smart purchasing decisions. Most software adheres to a versioning system that typically appears as follows: Major. Minor. Patch (e.g., 2.1.3).
Major releases: These are significant updates that introduce new features, overhauls, or major architectural changes. For instance, transitioning from Windows 10 to Windows 11.
Minor releases: These updates add new functionalities or improvements, but they typically do not alter the core functionality of the software.
Patch releases: These are corrective updates that address bugs, security vulnerabilities, or minor performance issues. They are crucial to maintaining stability and security.
The ‘N-1’ rule: Maximizing value
Given the rapid pace of technological change, the best “bang for the buck” strategy is often to consider the previous generation of hardware or software.
If the latest version is “n,” then the “n-1” version frequently offers a compelling balance of features, performance and cost.
Why “n-1”? The “n-1” version typically benefits from:
Lower prices: As the latest version launches, the price of the previous version often decreases.
Mature technology: The “n-1” version has been tested and refined, resulting in fewer bugs and greater stability.
Sufficient features: It still provides most of the features of the latest version, and it is likely to meet the needs of your business.
When to consider “n-2”: If your budget is extremely tight, the “n-2” version might be an option. However, be aware that you may miss out on key features or that support for this version may be limited.
Avoid older versions: Purchasing versions older than “n-2” is generally not advisable. Support for these versions is often discontinued, leaving your business vulnerable to security risks and compatibility issues.
Real-world examples
Operating systems: When a new version of Windows is released (e.g., Windows 12), consider the previous version (Windows 11). Windows 11 is likely to provide a superb user experience and compatibility with your existing software, and it will be available at a lower price.
Smartphones: If the latest smartphone model is the “X,” consider the “X-1” model. You’ll acquire a reliable device with most of the latest features, but at a reduced cost.
Software suites: If you’re contemplating a new accounting software package, the “n-1” version might be a better deal. The newest version may include features that you don’t require.
Key takeaways for smart tech investments
Understand Moore’s Law: Recognize that technology evolves rapidly.
Decode software versions: Understand the significance of major, minor, and patch releases.
Embrace the “n-1” rule: The previous generation of hardware and software often provides the best value.
Prioritize support: Ensure that the version you select is still supported by the vendor.
Consider your needs: Avoid overspending on features that your business does not need.
By adhering to these guidelines, small and family businesses can make informed technology investment. This will help them remain competitive without being overwhelmed by the rapid pace of change.
About the author
Nelson Viloria is a seasoned telecommunications management professional and account services manager at Nokia. With extensive experience in service delivery, network operations, managed services, and project management, Nelson’s expertise lies in optimizing reliability, productivity, and system efficiencies within complex technical projects. His career spans key roles at leading telecommunications companies including PLDT, Nortel Networks, MTN Afghanistan, Mobiserve Pakistan, Huawei Technologies Philippines Inc., ZTE Philippines Inc. and Infinera Philippines Inc. A founding member of the Business and Management Consultants Association of the Philippines (BMCAP), Nelson holds an Electrical Engineering degree from Ateneo de Davao University and a Postgraduate Certificate in Business and Management Consulting from the Asian Institute of Management. He can be reached at nsviloria@gmail.com.
