The U.S. Navy has a problem, and a pretty big one at that: It’s using a highly outdated piece of technology that could put our military and nation at serious risk.
At bare minimum, this is a technological detriment that’s burning millions of tax dollars every year — money that’s being fed right into the hands of one of America’s largest corporations.
Despite what might immediately come to mind, I’m not talking about any kind of weapon, aircraft, or vessel. In fact, this is a technology that you’ve probably used before at some point in your own home.
I’m referring to the popular computer operating system Windows XP.
Believe it or not, Windows XP has been around for over 14 years now. When it comes to operating systems, that’s pretty old.
Since the initial release of Windows XP in 2001, we’ve seen Windows Vista, Windows 7, Windows 8, Windows 8.1, and now Windows 10. That’s a lot of operating system releases for the world’s most powerful military to not have upgraded yet.
What’s truly worrisome, though, is not simply the fact that the Navy is behind the times on its sanctioned OS. The real issue is that back in April 2014, Microsoft officially cut support for XP for good.
This means Microsoft will never issue a new security patch or bug fix for the outdated OS ever again, opening up the U.S. Navy — and all other XP users — to major security flaws and potential hacks.
As Microsoft has stated:
While it’s true that you can keep using your PC with Windows XP after support ends, we don’t recommend it. For starters, it’ll become five times more vulnerable to security risks and viruses, which means you could get hacked and have your personal information stolen. Also, companies that make devices like digital cameras, Internet-ready TVs, and printers won’t provide drivers that work with Windows XP, so if you get new devices, they won’t work with your current PC. And over time, the security and performance of your PC will just continue to degrade so things will only get worse.
It might come as a surprise that despite its age, and despite the lack of support, Windows XP still remains the second most widely used operating system in the world. The OS’s grip is bound to gradually slip, but it’s been incredibly resilient, that’s for sure:
More than perhaps any other operating system in history, Windows XP has had major staying power, not just with the Navy, but with a surprising number of corporations as well. In fact, CNN Money reports that 44% of U.S. corporations still rely on Windows XP for at least one aspect of their business.
If you’re wondering why this is the case, it’s simply an issue of holding onto business-critical legacy applications — programs written for Windows XP that simply don’t work on newer operating systems.
As Steven Davis, spokesman for Space and Naval Welfare Systems, puts it:
The Navy relies on a number of legacy applications and programs that are reliant on legacy Windows products. Until those applications and programs are modernized or phased out, this continuity of services is required to maintain operational effectiveness.
Because the Navy relies on these legacy apps, it’s been forced to enter into a private contract with Microsoft for continued support. As it stands, the Navy’s contract with Microsoft contains options to extend the deal through June 8, 2017, which would have the military branch paying Microsoft up to $31 million.
But again, this issue of incompatibility is not unique to the U.S. Navy. It’s an IT headache for any corporation that relies on legacy programs and apps, which is why so many businesses have been reluctant to switch over to a newer OS.
Not only is transitioning to new systems a major expense, but it’s a threat to business operations, too.
The Best Free Investment You’ll Ever Make
Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. When you become a member today, you’ll get our latest free report: “The Nvidia Killer: Unlocking the $100 Trillion AI Boom.”
It contains the most promising AI companies and sectors poised for explosive growth. Our team of expert analysts has conducted thorough market research to uncover a hidden gem currently trading at just $2.
After getting your report, you’ll begin receiving the Wealth Daily e-Letter, delivered to your inbox daily.
Fortunately for firms that rely on legacy apps, there’s an emerging solution to this compatibility problem: a new and disruptive technology known as cloud-based virtualization.
In short, cloud-based virtualization allows agencies and corporations to run virtual computers on the cloud. These virtual computers mimic operating systems such as Windows XP and allow users to run legacy applications through the web, no matter what device or OS they’re using.
In other words, cloud-based virtualization extends the life of apps and programs, allowing firms to upgrade to new devices and new operating systems without losing business-critical software.
Over the next several years, countless corporations will be forced to ditch Windows XP in favor of newer operating systems such as Windows 8.1 and Windows 10. As they do, many are likely to opt for virtualization solutions, which will prolong the life of their legacy apps.
For investors, the opportunity is especially ripe because this technology is still in its infancy. There are also only a select few companies capable of pulling it off.
Until next time,
Jason Stutman
Check us out on YouTube!
