Gartner is a leading research and advisory company, commissioned to deeply and thoroughly explore segments of the technology market. This is a summary of their findings in analyzing the Third Party Maintenance market with reference to data centers, storage, servers and technology in general. 2021 Update: What has changed in the last year and how does it affect data center maintenance and support?
The key finding?
Gartner rarely sees customers return to the original equipment manufacturer (OEM) after using the third party maintenance because the customers are satisfied with the results of TPM and save a considerable amount of money through this.
The demand and application of technology in today’s world have cheered businesses to increase their budgets in IT equipment. Businesses also have to pay attention to the efficient maintenance and repair of these gadgets. So now, companies are supporting their functioning cycle with third-party maintenance.
The Gartner new market guide for the data center and the third party maintenance demonstrates that the original equipment manufacturer OEM hardware support can be reduced by applying the TPM in hybrid solutions.
Gartner Report Overview
In July 2017 the Gartner released the first-ever competitive landscape report related to third-party maintenance by looking at the demand for low-cost IT equipment in the market. Then in August, the firm released its market guide for third-party maintenance. Now its findings are applied in more than 80 countries globally, and businesses are growing and gaining profitability because of it.
Based on the recent research note from Gartner, the TPM support market is expected to rise by 200% and reach a total value of US$1.05 billion by 2023.
Gartner’s report also offers a few recommendations to SPVM leaders, who should “evaluate third-party support as an alternative to the vendor’s support” to increase ROI.
It’s clear that third-party maintenance is win-win for both provider and recipient: both the TPM company and their customer gain significant profits by reducing OpEx and CapEx compared to returning to the OEM for an equipment refresh or upgrade.
2021 Update: What has changed?
The third-party maintenance research has helped various businesses to improve their overall performance in the market. Most enterprise companies or SME’s who are tired of using the ineffective upgrade cycles of the hardware have switched towards third-party maintenance providers once they discover it exists.
TPM helps many businesses to improve their operations by using the proper equipment.
There are various changes in the trends of the businesses due to the COVID 19 pandemic in the last year. Third-party maintenance is the one primary solution to all organizational and business operations because it helps you find opportunities for savings and reduction of expenditure in your already existing lifecycle.
Third-party maintenance companies continue to receive high demand for hi-tech equipment from businesses facing a significant downfall in 2020-2022 in return for additional data protection and safety support.
There are many pain points customers face when dealing with the original equipment manufacturer (OEM).
- Price. The main issue is the high support cost of the OEM. If you want to renew your current hardware system, you need to pay the additional cost for it. But the third-party maintenance has come to the rescue by offering cost-saving and flexible packages to maintain hardware systems.
- Contract length. The OEM contract is about 3 to 5 years, and customers find they are locked into that contract, but third-party maintenance providers supply services according to the clients’ needs. That is the main reason that the third-party maintenance market demand is higher than that of those returning to the OEM.
- Response times. When you face any issue with the original equipment manufacturer, the customers have to wait a long time for the responses, even if you have to replace the crucial part of the hardware. The contracts with the original equipment manufacturer are more confusing and time-consuming than the third-party maintenance. The third-party maintenance TPM will offer customers the same packages at lower cost and with better customer service.
What TPM is:
Third-party maintenance (TPM) is a great deal of attention in today’s world. The TPM is discovering new and creative ways to extend the technology budgets. The third-party maintenance covers hardware support for server, storage, and network equipment. TPM services are the best alternative to OEM support. Thus, TPM should be part of the hybrid support model, which involves using the original equipment manufacturer.
Advantages of third party maintenance:
The advantages of third party maintenance are given below:
The third-party maintenance will help companies reduce the support costs by more than 50% compared to support from the OEM. The third-party maintenance services available in the market currently are supported as an excellent alternative to the OEM by Gartner’s report.
The Gartner report states that “Hardware maintenance is increasingly being considered as a ‘nonstrategic IT’ spending and procurement, with the result being that IT professionals are seeking low-cost alternatives to expensive equipment manufacturer contracts and pricing.”
The cost of third-party maintenance is low. But it does not mean that the quality of the services they are providing is also low. Third-party maintenance provides the best premium quality services. They contact the clients with immediate responses. TPM providers do regular check-ins to address the trouble calls and strategize proactively and prevent trouble.
Gartner found that “Customers will continue to leverage equipment manufacturer maintenance and TPM maintenance together in a hybrid solution.”
Every client has different needs. So the third-party maintenance providers offer their clients flexible packages which fit according to their needs. The clients can select the packages by array by array, server by server, router by router according to the solution they need. The TPM helps the clients to maximize their costs.
According to Gartner “Some enterprises consider the flexibility and customized support from third-party maintenance providers as an advantage.”
Extended hardware lifespan:
Third-party maintenance provides the end of the support life date to the clients. The hardware life span date is essential for IT organizations, especially when the budget is tight. TPM enables clients to maintain their equipment for as long as possible without any problems or shortages.
The Gartner report states that: “Customers will often switch to TPMs when the original warranty runs out, rather than renewing the OEM support contract, due to significant increases in equipment manufacturer post-warranty pricing.”
In the upcoming years, the third party maintenance demand will increase more due to the change in the introduction and the knowledge of the new working style and the high demand for different types of IT equipment. Third-party maintenance is the low-cost and budget-saving hardware support system to support industry growth. The new ongoing upgrades and the new cloud solutions will be introduced, which helps the businesses grow more in the market.