• About one-third use PCs
  that are more than four years old with older or outdated operating systems
• Perceived software
  incompatibility and high costs cited as reasons for delay
• To stay competitive, SMBs with Windows 7 devices should
  make the shift before End of Support in January 2020

SINGAPORE -�Media OutReach�- 26 November 2019 -�Technology is a key
driver for business growth and workforce productivity but Small and Medium
Businesses (SMBs) in Asia are not upgrading their computing systems and
strategic IT applications such as cloud and mobility fast enough.

�

More than a third of
SMBs (36%) still own PCs that are more than four years old and running older
operating systems, which not only affect work efficiencies, but expose organizations
to security vulnerabilities and IT threats. Just in the last year alone, 62% of
SMBs surveyed said they had experienced a security breach. To top it off, majority
of SMBs (86%) lacked an organization-wide mobility strategy.

�

These findings were
revealed in the latest Microsoft study[1]
in partnership with global SMB IT market research and analyst organization TechAisle, which polled almost 2,000
SMBs across Asia Pacific.

�

"Technology can be a
real enabler for businesses, both small and large, and SMBs should continue to recognize
the value that IT investment can bring to their present and future growth. SMBs employ over half of the workforce in the Asia Pacific,
significantly contributing to the region's economic growth[2]. Employees in this region,
most of whom are young and mobile, are digital natives and appreciate modern
work environments and tools that allow them to work smarter and more effectively.
We want to work
alongside SMBs in Asia to help them realize their ambitions and succeed in this
competitive marketplace," said Belinda Widgery, Channel & Device Marketing
Lead, Microsoft Asia.

�

Narrowing the adoption
gap

�

According to the study,
the continued delay in SMBs' adoption of newer technological infrastructure
across business functions, was due to factors such as perceived app
incompatibility and high costs associated with acquiring and maintaining new IT
hardware and software. Slightly more than half of SMBs surveyed (54%)
said they did not have a PC refresh policy nor were they actively pursuing it.

�

However, the reality
is that the lack of a strategic PC refresh policy can result in greater
repercussions in the long-run. There is a 3.1 times higher chance of old PCs requiring
repairs, which can amount to economic costs of at least US$2,657 per PC per
year, and result in at least 157 hours' worth of productivity time lost.

Fig 1. Cost of owning an older PC

�

One way to narrow the
technology adoption gap is with cloud adoption. More than half (54%) of SMBs
said they are aware of PC-as-a-Service offerings, with 40% planning to adopt
them within the next year. Key motivators for this include having the option to
acquire the latest technology faster (57%) and reducing IT support workload
across their business functions (55%).

�

Windows-as-a-Service
was also cited as another way SMBs can refresh their older PCs as it provides
security patches and regular OS updates for optimized use. Concerns over app
compatibility are addressed with Windows 10, the most app-compatible version of
Windows-to-date with best practices including app telemetry, ISV partnerships
for diagnostic data and troubleshooting as well as looping feedback cycles. �With the upcoming Windows 7 End of
Support, SMBs have to make
their shift towards newer PCs and operating systems as users will no longer
receive security updates or support for PCs running on Windows 7. This includes
new security updates, non-security hotfixes, free or paid assisted support
options, and online technical content updates.

�

For more information
on why SMBs should make their shift towards newer PCs and operating systems,
please refer to Windows 7 End of
Support https://aka.ms/ContactMSFTTH

About Microsoft

Microsoft (Nasdaq
"MSFT" @microsoft) is the leading platform and productivity company for the
mobile-first, cloud-first world, and its mission is to empower every person and
every organization on the planet to achieve more.