By Janne Kokkaret, SSCS Business Development Director – Nordics

What do I mean by “Hybrid Hardware Support?” It’s when your in-warranty IT hardware (servers, storage and networking) are supported by the OEM, during the warranty period. Then, all or a portion of your post-warranty assets are maintained by an independent hardware support provider (also known as Third-Party Maintainer). And, this is hybrid support model is strategically chosen to impact and reduce OpEx (Operational Expenses).

Still researching? Still evaluating? Not ready to open the door to ANY salespersons from an independent support provider? Sure, I understand. But, perhaps you now need to be able to quantify the potential financial impact for a hybrid support strategy. Will further research be worthy of your time? Will the value outweigh the opportunity cost of making a change? It’s hard to know that without a tangible quantification.

You will never get an answer from the OEM on this subject; they don’t want to lose any revenue.

Need a formula to quantify the value and do so simply? Here it is:

• If 20% of your enterprise hardware assets are post-warranty, by using TPM for those assets, you’ll see a 10-12% total reduction in your Total Hardware OpEx budget.

• If 18% of your enterprise hardware assets are post-warranty, by using TPM for those assets, you’ll see a 9-10% total reduction in your Total Hardware OpEx budget.

Get the picture? It’s very easy to use this formula and carry into your own environment, right? In both instances, I should explain that we are referring to the annual Operating Expenses of servers, storage and networking assets. Also, we are intentionally excluding (EUC) End-User Compute hardware, for the sake of simplicity. Lastly, this formula is rooted in global averages (not averages by geography, or an industry vertical).

What were the origins of this formula? How can you be sure of its validity? After reviewing the financial impacts we’ve already made for our clients across these last 30 years, we have validated our estimates with key Gartner analysts, and they readily agreed. As a matter of fact, Gartner and SSCS executives agreed these estimates were fair, but also somewhat conservative.

Both Gartner and IDC estimate that the typical data center contains 20-22% post-warranty hardware assets. This is likely an increase from 15-20 years ago. But, since such a sizable percentage of assets need not be under expensive OEM maintenance, why wouldn’t the modern data center decision maker be curious about alternative support models?

Want to know more details about the financial impacts of a hybrid support model? Click here to download this helpful SSCS white paper. Or, click here to read a white paper that can help you better evaluate these independent hardware support marketplace.

Once your research helps convince you of the fiscal impact of hybrid support, be sure to check out our blog history to understand how best to differentiate one independent provider from the other. This information is critical to value, as well as Service Quality.

By Janne Kokkaret, SSCS Business Development Director – Nordics

Janne joined SSCS in 2014 as Service Delivery Manager for the Nordic region, but has 14 years of experience in IT support roles, support team management and sales. His background includes EUC (End-User Compute) assets, as well as data center servers, storage and networking hardware support. Janne now leads business development activities throughout his region, working with clients to meet the unique needs of each.

From his home near Helsinki, Janne enjoys spending time with his wife and children, any outdoor activities and is a member of a unique club of Tesla owners. This club meets regularly to test the limits of their Tesla, while proving to the world that performance is not sacrificed by choosing a Tesla automobile.

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