What is Moore's Law and How Does it Affect My Small Business?

Updated September 12, 2026

Moore's Law is often misquoted as saying that a computer becomes obsolete after 18 months. Gordon Moore's observation concerned the number of transistors that could be placed on an integrated circuit, which historically increased at a rapid pace. It is not a promise that every computer's speed doubles every two years, and it does not set an expiration date for a business PC.

Gordon Moore first described a trend in integrated-circuit complexity in 1965 and later revised the pace of the prediction to roughly a doubling of transistor counts every two years. Manufacturing advances have continued, but the economics and technical limits of chipmaking have changed. Experts debate how long the historical pace can continue; either way, Moore's Law is a description of a chipmaking trend, not a purchasing rule.

How does Moore's Law Affect You?

For a small business, new chips can bring useful gains in performance or efficiency, but a newer processor alone may not justify replacing a working computer. Choose a refresh or lease term based on the software your team runs, security support, reliability, warranty coverage, and the cost of downtime.

For many small businesses, having a two-year refresh cycle on computers might be nice, but for most people, the technology and advancements are not so drastic that new computers are needed after two years. Getting new computers every two years might even put an unnecessary financial strain on a business.

Much like a car lease where you can get a new car every two or three years, one of the benefits of a lease is to get a new machine before wear and tear leads to diminished performance and breakdowns.

There is no universal four-year laptop or five-year desktop expiration date. A computer that still runs required software, receives security updates, and meets performance needs may remain useful longer; another may need replacement sooner because of repeated failures or a costly repair. Evaluate each device's condition and total cost of ownership instead of counting cycles of Moore's Law.

If a computer feels slower, check the cause before replacing it. Startup programs, low free storage, insufficient memory, aging storage, malware, or heavier applications can all affect performance. Some issues are inexpensive to fix; others point toward replacement.

Technology and software requirements do change, but update schedules vary by product. Keep operating systems and applications supported and patched, monitor the machines your team depends on, and plan upgrades before security support or reliability becomes a problem.

If an older computer struggles with your daily work or is approaching the end of security support, review your options before it fails. Maintain tested backups, assess repair and upgrade costs, and replace devices when their risk or limitations outweigh the value of keeping them—not simply because they have reached a particular age.