4 minute read3 Business Cases for Third Party Support
Innovation doesn’t necessarily come cheap, but that doesn’t mean that identifying options to maintain a peak level of IT operations while minimizing costs isn’t a top priority for C-suite executives everywhere. Simply finding new ways to extend the life of critical capital investments can be a great way to generate valuable savings, which is why many organizations have begun the process of moving away from vendor maintenance contracts and have embraced the benefits of third party maintenance (TPM) with open arms. In truth, there are a wide range of business cases for third party support in particular that are more than worth exploring.
One Stop Shop
For most businesses, the data center often houses equipment from multiple vendors, each of which represents individual (and cumbersome) OEM support agreements. Every agreement requires time and effort to juggle, even when you’re just talking about paperwork. This often results in less efficiency, which is something you do NOT have to worry about with a third party maintenance provider.
With a TPM provider, even multi-vendor equipment can be covered within a single, simple agreement – with a single point of contact as well. This reduces paperwork significantly while increasing efficiency at the exact same time.
Reduced Support Costs
One of the major downsides of the OEM business model in the first place has to do with not only increases in maintenance costs year after year, but also the eventual cancellation of that support when an asset reaches End-of-Life (EOL) or End-of-Service-Life (EOSL). The OEM model relies on you being willing to replace equipment rather than keep it running and even post-warranty service is often too much for businesses to deal with.
With a TPM provider, on the other hand, quality maintenance and support is a given – allowing you to avoid new capital expenses that you don’t really need. A TPM provider doesn’t need to find ways to recoup R&D investments, meaning that there is also no need to pass that financial burden onto you. This alone can be a great way to save 30 to 60% over traditional OEM post-warranty coverage.
Another major problem with the OEM model is that it often offers limited maintenance options, so you’re essentially overpaying for an unnecessary level of support. Certain things like testing and development does not require a same-day response, but if your OEM does not offer next-day options you’re paying a premium for something you don’t really need.
TPM providers, on the other hand, are able to provide a wide array of services with an approach that can be fully customized to meet your needs. Coverage isn’t just flexible – it can evolve over time as your business does the same. If you need to reduce support or add new equipment, your coverage will change with you.
It’s Time to Make the Leap
Making the decision to move beyond OEM maintenance brings with it a wide array of savings and support opportunities that most businesses can no longer afford to ignore. This is why it is so important to consult with a knowledgeable TPM provider to carefully weigh all of your options before you make any type of firm decision. An objective evaluation can be made between your current level of support and those of a third party maintenance provider, making sure that every dollar you spend brings with it the maximum amount of return possible.
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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.
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