Get the same or even better quality for less money – we show how this works in the area of enterprise IT.
Delivering the same or even better quality for less money is a demand that is regularly made to CIOs. There are some ways to achieve this goal. One of them is independence from the life cycles that OEMs impose on their customers.
Failover security(Resilience) is one of the parameters that go into measuring the quality of a company’s IT infrastructure. Complete business models now depend on the availability of a network connection. Therefore, for most of those responsible, the conclusion of a maintenance contract when purchasing new computer hardware is mandatory in order to be prepared for potential failures. A Standard Maintenance contract(s), therefore, form a budget item that is rarely questioned critically.
Dependence on the manufacturer dominates the market
A machine maintenance contract for the components of the infrastructure is necessary, is beyond question. The race for the contract should, however, in most companies more or less automatically make the hardware (OEM or reseller) provider to be serviced. This is convenient and common, but not necessarily the best way economically.
Most maintenance contracts only offer a comprehensive package of IT services, which, in addition, are endowed with a percentage of the acquisition or licensing fees. CIOs who go this way, however, often pay for it. When in doubt, they pay a higher price and book IT services they may not even need.
Release maintenance contracts from OEMs and resellers
Many are unaware that there are vendors on the market for 30 years offering maintenance contracts independent of hardware. Such maintenance packages include not only current generations of hardware, but also older-style products for which OEMs no longer offer maintenance. From a menu of services, IT managers select exactly the components that make sense to them. Only what is needed is paid. Savings of 50 percent and more in terms of maintenance are not uncommon here.
CIOs reduce costs, but do not save on security or quality. After all, as a rule, the providers also have official certifications and partner contracts with the manufacturers, so they have the know-how to guarantee the runnability of the systems. For example, Curvature employs around 40 Cisco-certified engineers for the networking business.
Hardware and maintenance drive the overall cost
Setting a share of more than 50 percent of the total budget for acquiring new hardware is quite realistic. In many companies, the network components are replaced on average every four years, despite the high initial costs. The technical progress rarely plays a role. The CIO does not invest in new technology because it promises more benefits or performance. But the framework conditions lead him to this step, because the hardware used by the OEM and manufacturer is now declared outdated. So it becomes increasingly difficult to impossible to get support for it.
Increase profitability of hardware purchases
Components of the infrastructure that actually works perfectly will be replaced prematurely. Supplier-independent maintenance contracts enable IT managers to deploy hardware more flexibly and for longer, increasing overall profitability.
Independent maintenance contracts, which also include previous device generations, open up even more savings potential. Because this gives the CIO the option of becoming active in the used component market. Parts of the infrastructure (such as routers, switches, or servers) are not technologically advanced as it is typical of other areas of IT. For a fraction of the price of the current device generation, there are components that can easily take over the planned tasks.
Sustainability is often treated as subordinate
If a company uses hardware for longer than the OEM recommends, or buys older hardware for new investments, this is not only interesting from a monetary point of view. This is also a good decision in terms of sustainability. Because their ecological balance is much better than when purchasing new equipment. Their production leaves a clear mark on our environment, not least because rare raw materials are also used whose degradation is anything but environmentally friendly. The better energy efficiency that new generations of devices sometimes offer does not make up for this burden.
Meaningful business decisions reduce costs
If you rely on the hardware of a professional vendor like Bleuwire™, make a decision that is conducive to business success. He does not have to worry about compromising on quality, on the contrary. Reputable providers subject the devices from previous ownership – often only a few months old – to a comprehensive functional and stress test. Only when this is passed, the used goods are offered. These systems have a lower failure rate (below 0.5 percent) than devices fresh from the manufacturer.
Increasing costs and the demand for budget discipline are so effective for CIOs when they open their mind to the purchase of used network components and the conclusion of vendor-independent maintenance contracts.