By Evandro Pasquarelli, Business Development Director, SSCS Brazil
Whether you prefer the older term, “Emerging Markets,” or the newer terms such as “Newly Industrialized Countries,” or even the group labelling, such as “BRIC (referring to Brazil, Russia, India and China),” Wikipedia describes these emerging markets as being in transition from less developed to more developed. Quite importantly, countries identified as emerging are often a logical target for external investment for their expected growth and profit potential. And our home country, Brazil, is a perfect example. My primary point here is that emerging market companies seeing external investment (like those here in Brazil) are expected to control all costs and maximize margins for their investors. Simple logic, right?
Thus, Business executives in these emerging market countries need to be committed to margin maximization and continually encourage a spirit of cost containment throughout their organizations. It’s essential! And quite simple.
If the spirit of cost containment is essential to investor satisfaction or confidence, the regular consideration of standard practices (especially in IT) and their associated costs would demonstrate that which builds upon the confidence of the investment communities.
Finally, and to the very point of my blog, IT leaders (like CIOs/CTOs) must have their eyes open to new ways of doing things and not be satisfied by status quo operational practices or methodologies. “The way we have always done it,” should never be an acceptable comment from the direct reports of these C-level executives. Instead, “what can we do to refine, improve, be more efficient AND cut IT costs” are imperative to the heart of the company’s culture.
What is the one simple-to-deploy Best Practice in IT Cost Control that I would like to convey today? Companies in Brazil (and across all emerging markets) would be wise to more seriously examine the cost benefits and Service Quality benefits of the Hybrid Hardware Support Model.
Supporting Perspectives from Gartner
• “A hybrid maintenance strategy — using OEM-authorized and OEM-independent maintenance — is becoming more common in the hardware support market, with a thriving ecosystem of independent support providers for server, storage and networking equipment. End-user customers are selectively using TPM services to cost-effectively extend the life of IT assets, control OEM-forced upgrades and save money.” ~ Christine Tenneson, Gartner [Doc. ID G00317887]
• “Third-party maintenance (TPM) as a hybrid strategy to support server, storage and networking equipment continues to gain adoption. Some OEMs’ pricing methodologies demand significant increases in maintenance charges as equipment ages, which drives customers to consider cost optimization through the use of TPM. Seventy-one percent of Fortune 100 customers used a third-party maintainer as a form of support in their environment in 2016.” ~ Christine Tenneson, Gartner [Doc. ID G00327730]
• Just last week (May 9), I met with Henrique Cecci, Research Director at Gartner, based out of São Paulo, Brazil. He also suggested that the cost savings potential, combined with high quality service, should be capturing the attention of end-user companies throughout Brazil. “This is an ideal time for them to be looking to build out a hybrid hardware support model.”
Are you, or other members of your team, still unfamiliar with hybrid hardware support and exactly what Third-Party Maintenance can offer? Click Here to read this well-written white paper. It really helps to explain the key value propositions of this very unique, but helpful, industry niche. Or, here is a very in-depth guide we’ve labeled “TPM 101” to help mid-level managers deeply understand all they need to know!
By now, the savvy CIO or CTO is asking themselves:
1. “What’s the value?
2. Help me understand the ratio of time (to review/understand, then engage the TPM industry) to the bottom line value of savings potential.
Great! This short blog does that very simply, “Need to Quantify the Value of Hybrid Hardware Support? Here’s a Simple Formula!”
My Final Point: If you could save 10-12+ percent from your Total Hardware OpEx budget, why would your IT team NOT be considering hybrid hardware support? Especially when modern Information Technology costs account for such a large percentage of your company’s annual budget. How could it be financially logical to retain OEM support for any post-warranty assets? In my humble opinion, my friends, this question must be asked of your teams and are best answered by your teams. But, it should be a simple answer if you have encouraged a truly proactive spirit of IT cost containment.
Evandro Pasquarelli, Business Development Director, SSCS Brazil
Evandro joined SSCS in November 2014, leading business development within Brazil, but also helping to support multi-national organizations with interests in the Brazilian marketplace. Prior to SSCS, he held sales positions in TIM Brasil, Alcatel-Lucent, Nextel, among other great companies. He has an MBA in Marketing from FGV – Fundação Getúlio Vargas. In his spare time, Evandro enjoys spending time with his family, the ongoing quest for happiness and work-life balance and cooking great food with dear friends.