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2 minute readThe TCO (Total Cost of Ownership) of Storage Hardware

TCO is an acronym that stands for "total cost of ownership."

TCO is an acronym that stands for “total cost of ownership.” A new storage array or upgrade, such as a disk shelf or disk array enclosure, for your business may initially cost X, but that isn’t the total amount of money you’ll spend on it over time. The cost of acquiring storage is only part of the bigger picture – the cost to update, maintain, and more all play important factors in total cost of ownership of storage hardware in today’s modern environment. Finding out the TCO of your storage hardware is one of the major keys to pinning down your total return on investment.

Blog Post: Determining the Potential ROI of Your Storage Project

Upfront Prices vs. Backend Prices

Focusing on storage TCO requires you to realize that the large storage hardware vendors are increasingly focusing on software, making licensing issues all the more complicated. Right now, the current software repurchasing cycle usually takes place every three to five years. When that time limit is reached, an organization will essentially have to repay for all of the software they’ve already bought just to maintain compatibility with new hardware purchases. Additionally, businesses may have to purchase entirely new hardware because their existing storage infrastructure may become end of life and will no longer have the necessary upgrades provided by the manufacturer. These costs can significantly add up and represent a major drain to the bottom line.

The Storage Refresh

Instead of refreshing storage hardware every three to five years when a product becomes End of Life, businesses should instead be looking at factors like amortization time and the time associated with that storage investment. The major factors that drive a storage refresh usually involve devices that can no longer perform in the way they need to, a total lack of overall storage capacity, a need for some new feature or the increasing costs of renewing warranties on hardware in the first place. A simple incremental upgrade suddenly becomes a major hassle as vendors are typically bundling all of these factors together.

Video: What Does “End of Life” Mean for my Storage Hardware? 

What Reliant Technology Can Do…

Turn to Reliant Technology

At Reliant Technology, we are still able to provide support and upgrades for storage hardware that is both End of Life and End of Service Life. Instead of being forced into an upgrade or refresh, you can choose the service level that works best for your organization. Or, if you have decided to refresh your systems, Reliant Technology also offers an Asset Recovery & Buyback Program that can help offset the cost of purchasing new hardware with either a credit towards hardware from Reliant Technology, or cash. These types of services can help offset the TCO of your storage hardware by extending the length of use as well as providing more affordable support and maintenance.

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Reid Smith-Vaniz

by Reid Smith-Vaniz

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.

Reliant Technology Cares

Reliant Technology Cares

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.

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