9 minute readHow do I improve my ROI from ServiceNow?
Return on Investment (ROI) is an incredibly important metric for every department, but especially within the IT world. IT Leaders need large budgets due to the immense cost of IT equipment. Maintaining the assets is a huge responsibility, both physically and financially. It’s your job to keep everything running smoothly, even more efficiently, sometimes with fewer resources – yes, budgets drop.
So, you need innovative ways to improve the ROI of your existing assets. The good news is that there are multiple ways of improving your ROI. While ServiceNow minimizes waste throughout the asset life cycle by tracking software licenses, hardware assets, and cloud resources – it doesn’t magically optimize your maintenance spending.
When it comes to hardware, especially servers, storage, and network equipment, you don’t always know when your agreements are going to expire or the future costs of annual renewals. You can extend the life of your equipment, thus increasing its ROI, by not automatically upgrading it at the request of your OEM rep.
OEMs are notorious for bundling the cost of the maintenance into the initial hardware purchase, then increasing the price of maintenance for a renewal – all in an effort to increase service revenue, or force a forklift upgrade.
On top of price increases, it can be hard to make a good decision if you don’t know when equipment is going EOL, EOSL, or EOS. You may allow a contract to automatically renew with an OEM, at a cost much higher than necessary, thereby decreasing the Return on Investment of your equipment. It is important for you to know when your EOL, EOSL, and EOS dates are looming.
Not knowing the end-of-life dates can cause IT planning issues that will affect your ServiceNow ROI:
- You request funding to extend support: You asked for money to extend the maintenance support contract on a given asset only to find out that the assets are going EOSL and now need to be replaced.
- You are moving to the cloud: You have been approved to move to the cloud but you need to renew some of your hardware support contracts. These contracts are limited to 12+ months terms but you only need them for 7-8 months. So you renew hardware support for 12 months, allotting the unused 4 or 5 months as a sunk cost.
- Purchasing and IT teams aren’t on the same page: If your procurement, legal, and IT teams are not on the same page, and are not proactively planning the next 12-24 months, or they are taking a long time to agree on terms, then you could be forced to refresh several systems because the maintenance expired and there wasn’t enough time to properly plan.
- Higher support costs than expected: OEM support is like a homeowner’s insurance company looking at the age of your roof. If the increase in age of your ServiceNow IT equipment makes it more susceptible to a near term failure and claim, then the price of that support contract will be more than it was the prior year, decreasing your ROI. This unexpected increase will force you to gain new budget approvals, which usurp your valuable time. Your system may lapse in coverage during that time frame and that opens you up to unnecessary risks. You request funding to extend support, only to find out that the assets are going EOSL and need to be replaced – after appropriately requesting the funds.
The root cause of all of these issues can be solved with a little bit of proactive planning, and the good news is your ServiceNow ITAM and CMDB data can help you.
- Collect the Data: Start by taking your ITAM or CMDB data as your clean list of data center assets. This data should include the make, model, serial and family that asset belongs to.
- Review and understand each asset: What does each asset control? What business unit will be most impacted by an outage? What software or data resides on that asset? Is this system critical?
- Enhance the Data: Append EOS, EOL, EOSL dates for each asset.
- Take your time and make a plan: Create a calendar showing the month and year that each asset will roll off OEM support to Third-Party Maintenance (TPM) support.
- Execute the plan: Name a dedicated and responsible Project Manager or System Administrator who can execute and monitor the ongoing plan.
You can simplify and streamline data center support agreements by unifying and centralizing EOL data to improve its quality, organization, and business value. There is no need to refresh or upgrade your current equipment. You can extend the life of older assets, ensuring they keep delivering value and return on your original investment
It’s all possible, just not easy. Attention to detail and care will be necessary as you learn critical data to carry out this process.
You do have options to using ServiceNow’s, or other OEM’s, maintenance programs, and switching to a Third Party Maintenance Optimization (Third-Party Maintenance (TPM)O) process will increase the ROI on your investments.
The Third-Party Maintenance Optimization Process, by Reliant Technology, offers you a more automated and time-sensitive approach in order to avoid unforeseen equipment failure and unwelcome downtime on critical assets. Our approach is fully autonomous and proactively identifies assets best suited for the transition to Third-Party Maintenance (TPM). You receive a cost savings analysis to project your savings over the next 24 months.
The problem with Third-Party Maintenance (TPM) alone
A problem with Third-Party Maintenance (TPM) alone, however, is that only equipment that is soon to expire is considered. Third-Party Maintenance (TPM), without the optimization feature, fails to create a simple, proactive plan across your entire infrastructure.
Rather than manually reviewing IT assets one by one, like in the complicated process in the sections above, Reliant Technology’s Third Party Maintenance Optimization tool automates the process to discover, analyze, and optimize ServiceNow data for savings opportunities and manages all savings, options, and quotes in an easy-to-use centralized platform.
This tool provides you with an executable roadmap to solve your maintenance headaches on all current data center equipment for the next 24 months. We can use your ServiceNow data to automate and enrich your asset data with proactive options for maintenance for all of your hardware.
By analyzing all of your hardware assets at one time using your ServiceNow data, we will:
- Provide proactive notifications of EOS, EOL and EOSL dates by asset
- Allow you to escape post-warranty OEM price increases
- Help you avoid guessing – you get forecasted support spend 24 months in advance
- Provide proactive maintenance pricing on over of your EOS, EOL, and EOSL models.
By sharing all of this data across your IT and procurement teams you have:
- Better IT Lifecycle Planning and organization
- Less risk because assets automatically shift from OEM to Third-Party Maintenance (TPM) support
- Custom coverage terms that match your decommission schedule (versus the standard 12 month renewals)
- One less thing to worry about
By complimenting your ServiceNow system with an enterprise-wide Third-Party Maintenance (TPM) strategy, you will immediately see an increase in your ROI.
Questions to Ask
|Does the Third-Party Maintenance (TPM) have a platform that integrates with ServiceNow?||
|Does the Third-Party Maintenance (TPM) have a platform that can ingest multiple data sources?||No|
|Can the Third-Party Maintenance (TPM) perform manual or physical discovery where assets are missing or unknown?||
|Does the Third-Party Maintenance (TPM) have the proper knowledge and team who can service your assets?||
on over 95 OEM product lines
|Does the Third-Party Maintenance (TPM) service locations across the globe?||
in over 20 countries
Your ServiceNow system is a necessary and beneficial tool to help you manage your wide array of IT assets. Get the most out of your investment by allowing Reliant Technology to help you improve the ROI of this investment.
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Reid is the founder and CEO of Reliant Technology and for 14 years has pursued his mission to remove the pain associated with maintaining IT infrastructure. Reid writes on common challenges related to maintaining, servicing, tracking, budgeting, and upgrading technology.
When you have Reliant Technology support your data center, you help us support SERV International and provide thousands of meals for starving children.
About Reliant Technology
As Data Center and storage experts, Reliant Technology is available to provide consultations and solutions to your server backup needs. Our experienced engineers and IT specialists are ready to help you determine the best option for your Data Center. If you have a topic you would like to see discussed, or if you would like to submit an article for possible publication, please, get in touch with us.