By Sarah Bellamy, SSCS Sales Development Director, EMEA

Tracking EoL (End of Life) or EoSL (End of Support Life) announcements and dates can be burdensome so we’ve built an EoSL Resource Library you can check any time. Specific to Hitachi Data Systems;(HDS) Storage, you can click here, or take a quick-glance at the list below.

There are six known Hitachi Data Systems storage models heading toward EoSL in the next few years

Hitachi Storage Model  End of Support Life Date 
HDS AMS 2300 9/30/17
HDS AMS 2100 9/30/18
HDS CR 220 11/18/18
HDS HNAS 3200 11/18/18
HDS HNAS SMU 300 11/18/18
HDS 520H A1 7/7/19
HDS 520H B1 7/7/19
HDS HNAS 3080 8/27/19
HDS HNAS 3090 G1 8/27/19
HDS 540A A1 1/19/20
HDS 540A B1 1/19/20

 

Next Step Considerations:

• Why not keep legacy systems that have reached “stable state” – saving CapEx & OpEx budgets?
• Do you really need to be considering a hardware refresh? Click here to read more.
•  Instead of refreshing to new, might there be value in pre-owned hardware?

Feel free to also check out this SSCS white paper, named:

•  Enterprise Trends in Hardware Lifecycle Extension Strategies.

 


 

Sarah Bellamy, SSCS Sales Development Director, EMEA

Sarah first joined SSCS in 1995 in a sales role, left in 2002 for a while to build a family, then re-joined the organization 2013 as a Business Development Manager, based out of Nottingham, UK. In 2018, Sarah was promoted to Sales Development Director for all EMEA, leading the sales team and the development of solutions which best match the needs of each unique client. Sarah’s passions include her family, skiing, world travel (especially to skiing destinations) and helping people. Among her peers she is known as a great listener and incredible problem solver.

By Michael Yost, SSCS Digital Marketing & Design Manager

The day I bought my first car was one of the happiest days of my life. The idea of the freedom it gave me was overwhelming. Then one day while driving to the mall my engine gave a weird noise and an even weirder smell and then it stopped moving. The true price of having a car shattered the glow of new vehicle ownership. Wanting nothing but the best, I did as most think to do and went to a dealership.

We all have heard about the untrustworthy local garage mechanic who will take advantage of those who know nothing about cars so I needed to avoid that. In my mind a dealership would never do such a thing. I miss the days of naïve youth, but unfortunately this mindset has been engrained into the consumer – in every industry – with data center hardware manufacturers being no different.

Such marketing tactics and strategic falsehoods are their strongest tools when it comes to getting the most money out of customers. So, below are some of the methods they use to scare you into staying with them for post warranty maintenance or purchasing new hardware.

The Manufacturers Know Their Product the Best

The reality is that most hardware OEMs will send new-hires to training programs and then send them to your data center to practice their new skills. It is all well and good that OEMs want to have the best service techs and want to provide them in-the-field training, but for the dollar amount that end-user companies are paying for this equipment support, not many would be comfortable with rookie engineers getting training on their mission critical hardware.

OEM hardware support fees become significantly more expensive at the end of the warranty, and are often prohibitively expensive after Year 5, before it is ended altogether and cannot be purchased at any price. The OEM makes their greatest profit on the hardware sale and first three years of hardware support. At the completion of the warranty period, they risk losing the revenue stream. So, to help their bottom line, they force you into the upgrade cycle. Meaning 85% of organizations discard legacy equipment despite the equipment continuing to meet service level needs because their current vendors no longer support it – or won’t support it at a fair price.

Consider your options for maintaining the overall health of your IT systems. Your systems probably consist of a wide variety of manufactures that are not just being provided by one vendor.

You Need New Hardware to Keep Up with Customer Demands and Changing Environments

When you start thinking it is time to upgrade, ask yourself some questions about your current hardware.

• What are you hoping to gain?
• Is there an application you’re hoping to deploy (because it provides measurable competitive advantage) and this application unable to run on your legacy systems?
• Can I expect improved reliability?
• Will it support the next trend or widget (does it need to)?
• Better cost-per-performance economics?

Upgrading to a new processor or server architecture can have a big impact on when you should be upgrading. If you go in too early you may be subject to bugs (OS-related) and other errors. Early adopters tend to pay much more than those with a conservative approach. If there are outages, even extended outages caused by unproven hardware/OS, can you afford the risk in down time? Do you want your end users to experience the side effects of a risky choice?

Yesterday’s 3 to 5-year upgrade cycle is over. YOUR upgrade cycle is reliant on YOUR needs. Hardware manufacturers and your peers are working refresh cycles of their own. Use more than a calendar to time your upgrades. You have the knowledge of your business and your industry. Moore’s Law is dead. Too often those in IT upgrade their equipment when there is no need to align with the expectations of external forces.

You May Lose Access to Firmware/Microcode Updates

While it is true that once hardware is out of manufacturer warranty it has often reached “stable state” and not likely to see many more OS patch updates. However, by Year 4-5, such OS updates are typically long over, and the OEM is about to announce “End of Support” dates. It should be known that most hardware may see one more security update between Year 3-4, but after that time, most updates only include “feature enhancements.”

These might be nice to have but are not essential. Most importantly, after the warranty expires, you are not at all likely to see updates that improve the performance of your equipment. All that said, some hardware should stay with the OEM between Year 3 and Year 4 for those security patches. But, remember, this does NOT apply to all hardware assets. But, certainly by Year 4, you really don’t need the OEM!

To put it simply, there are many factors that go into the decision to hang on to aging hardware or to upgrade. The only person who fully understands those factors is YOU and your company. When the OEM comes knocking showing their newest, make sure you consider it on your terms and needs, not theirs.


Michael Yost, SSCS Digital Marketing & Design Manager

This is Michael’s third year with SSCS, but he has been actively involved in html programming, website construction, SEO, graphic design and proactively driving social/digital engagement since he was in his early teens. In addition to his role at SSCS, he serves as an adjunct professor of digital marketing and design at a local community college in Houston, Texas. In his spare time, Michael loves engaging his family in outdoor activities and games that build creativity. He is also a life-long student of humor in the western cultures.

By Mark Havens, VP, Sales & Marketing, SSCS

On occasion, haven’t you wanted access to technical expertise for IT projects, or during major deployments, upon whom you could rely without additional burden to your current IT staff? Or, wished for a resource that charged a fair rate for projects – on-demand IT projects, which have a beginning and an end?

Financially, it is possible to find such technical expertise and the cost may be less than using internal staff. This can be especially true for remote office or branch office tasks that require existing staff to visit one day monthly. Quite likely, SSCS already have staff resources nearby. Here are a few areas in which SSCS Smart Hands can help:

• Project assistance providing incremental labor when/where needed
• Remote office or branch office support, periodic site visits to observe/troubleshoot
• Server/storage/networking gear installations, diagnostics, reboots or decommissioning
• Server/storage/networking asset relocations
• Cabling, cable moving, component upgrades, tape/CD exchanges
• Resetting ILO and/or remote connectivity cards
• Visual inspection of systems or asset location verification
• Physical site audits

Can an independent support provider offer Smart Hands for assets still under warranty? Click here to see how/where we can indeed help!

We are proud to announce that we are celebrating Our 30th Anniversary – that is 30 years of dedication to large, medium and small companies around the globe. Are you ready to learn more about SSCS?


Mark Havens, VP, Sales & Marketing, SSCS

This year will be Mark’s 24th year with SSCS. 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.

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.

By Ty Stubblefield, SSCS Lead Development Specialist

Since moving their fiscal year end to the end of July, the Cisco Sales Team have pushed its clients to have more renewals occur in the summer months. While it might seem, at first glance, that this change was helpful to clients and employees, permitting all to have a more comfortable holiday season. However, the beautiful days of summer and family vacations can often result in less-than-critical thinking during the renewal process for some in IT Procurement or Network Administration.

Getting to the key points of this blog:

1. More companies are choosing a hybrid hardware support model, OEM combined with independent support (for post-warranty equipment) to capitalize on significant cost savings. 71% of the world’s largest companies are using this hybrid support model now, according to Gartner.

2. Because many network admins rank “security” as their greatest priority, not all will take the time to listen to options that support IT cost containment. Yet, IT Procurement focuses on cost savings, but may not understand all the nuances of security, stability, network resiliency and so on. So, there is often a natural rub between departments and the key messages (value propositions for alternative/hybrid support) are lost!

3. Assuming your IT Asset Management (ITAM) practices are built soundly (we have prepared for those that aren’t), you likely have access to data that readily identifies which assets are post-warranty vs. which assets remain under warranty. And, from this same segregation, you can easily deduce how much you are paying for annual support of in-warranty assets, how much for post-warranty assets and how much you’re total annual Operational Expense (OpEx) is for all Cisco assets.

According to estimates from Gartner and IDC, roughly 20% of your company’s Cisco assets will be post-warranty. And, if you’re in IT Procurement, you may know that a hybrid support model that permits eligible assets to be maintained by an independent provider can save as much as 10-12% off your total OpEx. Didn’t know that? Click here to better understand and access this very simple formula to quantify savings potential.

4. For the network security professional, did you know that many network admins around the world have paid for full SMARTnet support, which include IOS patch updates/fixes long after such patches are no longer provided? If you’re getting parts delivered, or “hot swap” of assets, or even the labor included, great! Just remember you are NOT getting IOS help (the very core of your security sensitivities). Therefore, you’re paying for the same support an independent provider could give you for much less. And, the security concern is really a moot point, is it not? Perhaps you should have your ITAM group begin to track End of Software Maintenance announcement dates.

5. Perhaps both IT Procurement and Senior Network Admins believe it is extraordinarily difficult to do any of the following:

• ID which assets are post-warranty
• ID which assets are eligible for independent support, or where there may be applicable risk
• Formulate a quantified value of a hybrid support model for your Cisco assets
• Effectively discern where risk outweighs reward for select assets
• Welcome an additional vendor to support your base of Cisco assets, and what may feel like a more complex support model
• Perhaps, right now, your teams have too many objectives and too few resources to embrace a change
• Perhaps you just haven’t yet found that independent provider that is 100% transparent with respect to risk analyses and trust has not yet been established.

Any or all of these topics can be present, but never fear, I assure you that the independent hardware support industry has worked very hard (in the last 10+ years) to build out all infrastructure/models to help you simply and quickly understand your asset base, lead you through risk considerations (focusing on YOUR best interests) and then help you quantify what can be saved. Even after that, I assure you that this industry of independent providers has built that which is necessary to simplify your transition to a hybrid model AND vendor dispatch models that make it quite easy for your team to get what they need and when they need it.

Hundreds of large companies, and thousands of small companies, around the world, have chosen a hybrid support model and are quite pleased with the resulting Service Quality, support flexibility and bottom-line savings.

If Gartner were to tell you that most independent providers can help you quantify savings, analyze risk for select assets and collect pricing in under two weeks, would you NOT rethink your hesitation? Why not ask?

If your renewal occurs August 1 (or even July 1), wouldn’t this month give you enough time to avoid frenetic decisions in mid-July? Or, another way to look at it, wouldn’t a modest time investment now, permit you to maximize your enjoyment of the summer weather or any pending and well-deserved vacations?

You could start by asking for our digital brochure, or copies of our hottest white papers on hybrid support! I welcome any inquiries to help answer your hybrid support model questions.


Ty Stubblefield, SSCS Lead Development Specialist

Ty joined SSCS in January 2017 in an inbound lead development and lead creation role. Although he only has 1.5 years in a sales role with an IT solutions provider, Ty has a keen appreciation for technology. In addition to him being an accomplished “gamer,” he readily embraces new technologies or tech enhancements delivered to the marketplace from manufacturers that serve both the consumer and the business sector. Ty is both family- and friends-focused, but also enjoys physical fitness and any moments outside with his new puppy

By Bernie Armstrong, SSCS Senior Sales Manager, EMEA

This article will address those individuals that are already familiar with Third-Party Maintenance (TPM), as well as those that are unfamiliar. Certainly, the purpose for this content is to provide consultative guidance to data centre operations and IT procurement professionals, helping them to understand the timing of engagement and the best methodologies to capitalise on OpEx (Operational Expense) in Data Centre Hardware Maintenance.

To explain quite simply, Third-Party Maintenance is a hardware support alternative, offered by organisations independent of the OEM (Original Equipment Manufacturer), but are able to specifically offer tremendous cost savings for the hardware support of servers, storage and networking assets that have reached post-warranty status. Many companies (e.g. 71% of Fortune 100, as per Gartner) are now using a hybrid hardware support model to reduce OpEx. Since the average data centre contains 20-22% post-warranty assets, the cost savings can be bountiful and beautiful.

Familiar with the TPM Industry – When to Involve or Engage

When:

1. When the executive team has conveyed a cost containment mandate.

2. Ideally, six months prior to the renewal date for the eligible IT assets. Such a seemingly long window is helpful for a few reasons, but the TPM may need time to help you identify post-warranty hardware and triage eligible assets from those that should remain under OEM support. As well, your availability for a handful of advisory discussions shouldn’t be rushed, so the transparency offered by the TPM can be fully absorbed.

3. At any point you’re about to make a hardware purchase decision, but would appreciate an independent and unbiased perspective. Not all business drivers necessitate a “net-new” hardware purchase. Perhaps your current hardware is n-7 (seven generations back from new), but designated applications don’t always need new. Perhaps you can buy n-2 systems and have it bundled with third-party hardware maintenance. To maximise savings, this is a near perfect scenario. Before jumping too quickly with any hardware CapEx purchase, have an open and transparent dialogue with a TPM – especially one that does NOT sell pre-owned hardware.

4. If you self-maintain any assets and the cost or risks have grown too high. Many TPMs will offer cost-effective Smart Hands options or even T&M (Time and Materials).

• How:

1. If you’ve not yet chosen 2-3 TPMs from whom you’ll accept consultation, we suggest it is best to start with Gartner. The foremost expert on the TPM industry is Christine Tenneson. If you have a Gartner subscription, schedule a discussion to get input on which TPMs best fit your needs. If you don’t have a Gartner subscription, you should at least connect with her at LinkedIn. Christine has analysed the global TPM market, and has direct and strategic dialogues with all TPM players. At the minimum, get the names of 4-5 TPMs you can further research independently.

2. In addition to reading a few websites, look for those that provide educational and helpful blogs. You’ll often gain a great sense of style from company blogs, especially those that are prepared by staff, and not a marketing department. Is it too pushy to recommend our blogs?

Look for TPM case studies. What have they done and for whom? Have they quantified any part of the impact they had on their clients’ business?

Feel free to contact me for any additional guidance.

Unfamiliar with the TPM Industry – When to Involve or Engage

When:

1. When the executive team has conveyed a cost containment mandate.

2. Now! Enough said. Well, it’s only fair to offer an additional reminder. When your data centre hardware asset base is approximately 20-22% post warranty (aligned with global averages), you stand to save 10-12% off of your Total Hardware OpEx!  It would be a travesty to postpone your familiarity with the industry niche any longer.

• How:

1. As previously mentioned, start with an unbiased perspective from Gartner. The foremost expert on the TPM industry and its value propositions would be Christine Tenneson. If you have a Gartner subscription, schedule a discussion to get input on which TPMs best fit your needs. If you don’t have a Gartner subscription, you should at least connect with her at LinkedIn. At the minimum, get the names of 4-5 TPMs you can further research independently.

2. Look for those TPM websites that provide educational and helpful blogs. A few TPMs provide regular blogs that are incredibly easy to understand, yet offer deep insights. Why not take a peak at our blogs?

3. Look for TPM case studies. What have they provided, for whom and what was the measurable result? I’d suggest to be cautious of those case studies that appear more like a brochure, than a case study.

4. Feel free to contact me for any additional guidance.


Bernie Armstrong, SSCS Senior Sales Manager, EMEA

Bernie joined SSCS in 2017 in a sales leadership position for the UK and EMEA marketplace. He has over 30 years’ experience in IT consultation and IT sales positions. He previously held account management or sales positions at RMG Networks, Emulex, Sphere 3D, Syncsort, SITS, Tectrade, StorageTek and Comenco. In addition to spending time with his family, Bernie is incredibly passionate about music – playing and singing, even as far as a stint with a regionally popular band in the 80s. If you agree to a face-to-face discussion, it’s likely he will agree to playing some videos from the “good old days.”

By Sarah Bellamy, SSCS Sales Development Director, EMEA

New to IT Procurement or Data Center Operations? Or, perhaps you’ve bypassed the TPM definition and value story, due to time or availability? Regardless of why you are reading this now, my commitment is to share with you a simple, step-by-step and unbiased overview of the TPM (Third-Party Maintenance) story, so you’re comfortable with the basic elements and can help your company make decisions, or deploy safe hardware support solutions across your data center environment.

Please permit me to suggest that you bookmark this blog, making it convenient for you to go through each segment at your own pace, and as per your availability. Of course, feel free to share the link to this TPM 101 blog with others in your company.

1. What is Third-Party Maintenance (also known as TPM or Independent Hardware Support) and what value does it promise to someone in IT Procurement or Data Center Operations?

Click each item listed below to read the content provided. Blogs will take 5-10 minutes to read. White papers take 25-35 minutes to read. Videos rarely run longer than 6 minutes.

• Read Blog 1
• Read Blog 2
• Read Blog 3
• Read White Paper 4

2. How would OEM hardware support compare/contrast to TPM, or Independent Hardware Support? Why abandon an OEM-only hardware support model?

Click each item listed below to read the content provided. Blogs will take 5-10 minutes to read. White papers take 25-35 minutes to read. Videos rarely run longer than 6 minutes.

• Read Blog 1
• Read Blog 2
• Read Blog 3
• Read White Paper 4

3. What are the marketplace trends for TPM adoption within industry verticals, or around the globe?

Click each item listed below to read the content provided. Blogs will take 5-10 minutes to read. White papers take 25-35 minutes to read. Videos rarely run longer than 6 minutes.

• Read White Paper 1

4. What are the critical elements to be measuring when comparing one TPM to another TPM? What is needed to ensure a fair, apples-to-apples comparison?

Click each item listed below to read the content provided. Blogs will take 5-10 minutes to read. White papers take 25-35 minutes to read. Videos rarely run longer than 6 minutes.

• Read Blog 1
• Watch Video 1
• Watch Video 2
• Watch Video 3

5. What is wrong with focusing only on lowest price support, to maximize IT OpEx reductions for the organization?

Click each item listed below to read the content provided. Blogs will take 5-10 minutes to read. White papers take 25-35 minutes to read. Videos rarely run longer than 6 minutes.

• Read Blog 1
• Re-read Blog 2

6. Why is Service Quality the primary differentiator between TPM support providers?

Click each item listed below to read the content provided. Blogs will take 5-10 minutes to read. White papers take 25-35 minutes to read. Videos rarely run longer than 6 minutes.

• Read Blog 1
• Re-read Blog 2

7. What vendor vetting questions will help find the balance between cost reductions and a support model providing adequate Service Quality? How should “best value” be pursued?

Click each item listed below to read the content provided. Blogs will take 5-10 minutes to read. White papers take 25-35 minutes to read. Videos rarely run longer than 6 minutes.

• Read Blog 1
• Read Blog 2
• Read Blog 3

8. Can I anticipate how much will the organization save if hybrid hardware support is adopted?

Click each item listed below to read the content provided. Blogs will take 5-10 minutes to read. White papers take 25-35 minutes to read. Videos rarely run longer than 6 minutes.

• Read Blog 1


Sarah Bellamy, SSCS Sales Development Director, EMEA

Sarah first joined SSCS in 1995 in a sales role, left in 2002 for a while to build a family, then re-joined the organization 2013 as a Business Development Manager, based out of Nottingham, UK. In 2018, Sarah was promoted to Sales Development Director for all EMEA, leading the sales team and the development of solutions which best match the needs of each unique client. Sarah’s passions include her family, skiing, world travel (especially to skiing destinations) and helping people. Among her peers she is known as a great listener and incredible problem solver.

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.