By Mark Havens, VP, Sales & Marketing, SSCS
If your enterprise IT infrastructure includes Dell servers and storage, perhaps you’ve already considered extending Dell server or Dell storage lifecycles to impact your OpEx (operating expense) and strategically delay your CapEx (capital expense) investments to refresh your technology. Or, perhaps you haven’t had the bandwidth to think about it, based upon departmental priorities. Either way, we would highly suggest a more engaged level of exploration.
Brand new hardware is expensive – simply put. And, sometimes your business drivers really do necessitate the investment. Speed, capacity and other factors may be vital to running the latest applications that promise to give your company a competitive edge. In such instances, refreshing to “shiny new” is often valid and worthy of the dilution to your overall IT budgets.
However, in other instances, you may not be making dramatic changes to your applications, but your older servers and storage are simply getting too old to operate effectively. Here’s where the depth of your choices may not have seemed so clear:
- You can choose “shiny new” and run mature applications on assets that offer more horsepower than necessary. And, then try to run your business on very lean budgets the next few years.
- Or, you can upgrade to newer, but not “shiny new,” saving on both CapEx and OpEx by choosing an independent hardware support provider. Remember how you used to “do more, with less” budget in college – making choices rooted in value?
Holding off capital expenses certainly helps address other needy budgets; however, there is additional value to your negotiating leverage by not refreshing in the same time windows as the OEM would prefer. When the latest technology becomes first available, pricing is not the same (much higher) than it is one year later. Moreover, let your industry peers and competitors deal with “early adopter” headaches often seen in first year operations. When you don’t do all the OEM suggests, you get their attention AND you’ll see better pricing, better bundled packages, etc.
Dell makes a great product – solidly built servers and storage. More so, they are far less prone to playing the anti-competition games as are the other OEMs. There, most definitely, is reason to be loyal to them. But, in those times when you need to do “more with less,” the depth of your loyalty does not need to mirror their definitions of a great relationship.
In the independent hardware support space (also, known as Third-Party Maintenance or “TPM”), support savings on post warranty assets run 40-60% off the pricing offered by Dell.
Certainly too, if you’re getting serious about hardware lifecycle extension strategies, most OEMs will increase their monthly support costs for post warranty assets. You’ve seen this. There is less overall value in having each OEM maintain the post warranty assets that they created…than it is to move all OEM post warranty assets to an independent that specializes in multi-vendor support.
Looking specifically to Dell servers and Dell storage support, most TPMs can easily maintain all the Dell assets your company has deployed: Dell EqualLogic, Dell PowerVault, Dell EMC devices, Dell Compellent, Dell PowerEdge, Dell PowerConnect. Assuming it’s post warranty, you name it, we likely can maintain it.
Note: In a recent Gartner publication, the analyst stated, “Currently, Gartner estimates there are more than 10 million data center/network devices under TPM, and 71% of very-large enterprise customers leveraged a TPM for support of some devices in 2016 [ID G00327263].” If 71% are using TPM and extending hardware lifecycles, why aren’t you?
New to understanding the TPM industry? No problem! Here are a few white papers that can help you better understand the remarkable value of this unique industry:
1.“Understand Why 71% of Fortune 100 Companies are Now Using Independent Hardware Support”
2. “Still Unfamiliar with the Benefits of Third-Party Hardware Maintenance?”
3. “CIO/CTO Evidence: Enterprise Trends in Hardware Lifecycle Extension Strategies”
4. “CIO/CTO Evidence: Financial Impacts from Hardware Support Strategy Remodeling”
Mark Havens, VP, Sales & Marketing, SSCS
This year will be Mark’s 23rd year with SSCS Global IT Services. Beginning in sales, he was promoted to Vice President, Sales & Marketing, now responsible for all global sales activities, brand recognition, inbound/outbound marketing and primary messaging. In his previous employment in management with Ritz Carlton, Mark was highly influenced by their industry-leading customer service program, as influenced by the standards of the Malcolm Baldridge quality awards.
In his spare time, Mark is engaged is numerous activities with his daughter, plays the bass guitar and is a vocalist with a band and his church choir.