In the fast-paced world of oil and gas services, the reliance on legacy operational technology can be a costly endeavor, both financially and operationally. At PipeCom, we understand the critical role that advanced Supervisory Control and Data Acquisition (SCADA) systems play in optimizing operations. Our expertise with industry-leading platforms like AVEVA Enterprise SCADA, Weatherford’s CygNet, and Inductive Automation’s Ignition positions us as a frontrunner in providing SCADA and Operational Technology (OT) as a service. Here’s why modernizing your legacy systems is not just an opportunity but a necessity.
The Costly Burden of Legacy Systems
Maintaining legacy systems can become a financial drain, with explicit and hidden costs piling up over time. A study by Deliotte indicated that maintaining just ten legacy systems could cost approximately $337 million annually. Organizations using outdated technology can see maintenance budgets inflate by up to 15% each year. The challenge of sustaining these systems while managing technical debt is significant, as highlighted by a survey where 70% of C-level executives acknowledged that such debts stifle innovation.
Explicit Costs to Consider
- Ongoing Maintenance Costs: Organizations often dedicate more than half of their technology budgets to maintain operations, with maintenance costs spiraling due to system breakdowns, required patch updates, and hardware replacements.
- Tech Support: Sourcing professionals skilled in legacy technology is becoming increasingly difficult and expensive. Training current staff diverts them from innovative projects, increasing overall tech support expenditures.
- Licensing: Special licensing for outdated software can require significant investments, as seen with high-profile cases like the US Navy’s expenditure on Windows XP.
- Environmental Costs: Legacy systems often require more energy and cooling, impacting environmental efficiency and increasing utility bills.
- Staff Costs: Challenges in finding experienced professionals for legacy systems result in higher staff costs, increased turnover, and reduced productivity.
The Hidden Costs of Legacy Technology
Beyond direct costs, legacy systems incur additional expenses that are less tangible but equally impactful:
- Innovation Stagnation: Older systems inhibit the adoption of new technologies, affecting competitive edge.
- Operational Inefficiency: Outdated systems lead to slower response times and reduced operational agility.
- Security Risks: Legacy systems often lack up-to-date security features, increasing vulnerability to cyber threats.
Why Modernize with PipeCom?
At PipeCom, we specialize in transitioning companies from dated technologies to modern SCADA and OT solutions. Our experience with AVEVA Enterprise SCADA, Weatherford’s CygNet, and Inductive Automation’s Ignition ensures seamless integration and innovative management of pipeline operations, enhancing data-driven decision-making and operational excellence. By modernizing, companies can reduce maintenance costs, improve efficiency, and unlock their full potential for innovation.
Embrace the Future with PipeCom
As the energy sector evolves, embracing modern technology is crucial for staying competitive and efficient. By partnering with PipeCom, you are investing in a future-proof infrastructure that minimizes costs and maximizes operational success. Let’s work together to transform your legacy systems and propel your organization into the future of oil and gas technology.