Value of Third-Party Maintenance

With such financial strain on budgets, many organizations are opting out of support contracts.

This can be a risky choice, especially when there are alternative solutions available.

How can you get optimal I.T. hardware maintenance while saving up to 60% off conventional OEM maintenance? Rethink your approach to maintenance with a hybrid support strategy.

 

Learn more about implementing a hybrid support strategy in this guide

Network Maintenance Savings CalculatorSave Big on Quality, Right-sized IT Hardware Maintenance

We understand that your job is evaluated largely on your ability to do two things well: minimize downtime and keep costs low.

Knowing your options is key when it comes to saving money. It’s all about finding the right balance for your business needs, and there are many reliable alternative solutions that will save operating expense (OPEX) budget to acquire the support you need.

Why not use a hybrid support solution of OEM support and third-party maintenance to get the coverage you need? You could put OEM support on your core switches and use TPM on the edge. 

The options are limitless – and so are the savings.

Find Out How Much You Can Save

Gartner: third-party maintenanceIndustry Research on Third-Party Maintenance

Trusted industry organizations like Gartner have done extensive research on hardware maintenance.  This research includes third-party maintenance (TPM) and the use of a hybrid maintenance strategy. Here's just a portion of what they have to say:

“Some benefits of these maintenance contracts from used-hardware resellers and TPM providers can be:

  • Cost savings — The ability to save 50% to 60% on OEM hardware contracts is typical, but for contracts with high product density, it can be up to 85% savings. Gartner has seen that this significant savings is more likely with servers, than with storage or networking hardware.
  • Contract length flexibility — The ability to enter into a month-to-month contract. There is not as much pressure to lock in for multiple years.
  • Contract term flexibility — The ability to terminate at any time without penalty.
  • Pricing methodologies — Many OEMs don't give a benefit for having product density. TPM providers often price on product density, and therefore, enterprises can leverage that more with a TPM provider than with most OEMs.
  • Escaping the significant postwarranty service price increases — With some OEMs, there are significant increases in maintenance charges as equipment ages. With TPMs, pricing can be more indicative of net present value (NPV).
  • Leverage with the OEMs — Sometimes, a TPM quote can be used to drive down spending with OEMs, or as a way to bargain with authorized value-added resellers (VARs). While OEMs will never match a TPM quote, we have seen instances where they reduced the quote from 5% to 20%.”

Gartner, Used-Hardware Resellers Offer Hardware and Support Cost Savings, February 2015, Foundational October 2016 [ID G00270507]


“TPM contracts will offer customers an average of 60% savings off of OEM support list prices. However, depending on equipment type, location and product density, Gartner has seen that the range of savings with TPM contracts is 50% off OEM list up to 95% off OEM list.”

- Gartner, Competitive Landscape: Partnering With Third-Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization, July 2017 [ID G00327262]

 

Recommendation: 

Invite authorized third parties (of vendor maintenance services) to bid, in order to optimize price and competitive leverage.”

- Gartner, Employ These Four Best Practices to Reduce Network Maintenance Costs, April 2016 [ID G00292366]

 

Recommendation: 

Actively employ alternatives to traditional vendor-defined options to better manage costs by analyzing specific network support needs to identify opportunities, such as self-sparing and balancing coverage levels to align with business fluctuations.”

- Gartner, Employ These Four Best Practices to Reduce Network Maintenance Costs, April 2016 [ID G00292366]

 

Recommendation: 

Ensure that business requirements align to maintenance service offers that match the level of criticality of a network device type’s role within the overall network design.”

- Gartner, Employ These Four Best Practices to Reduce Network Maintenance Costs, April 2016 [ID G00292366]

 

Take a tiered approach to support contracts. Not all network equipment has the same impact on service levels, so it is often appropriate to group devices in different tiers, each with a specific support strategy.”

- Gartner, Reduce LAN Equipment Support Costs With Limited Lifetime Warranties, January 2016 [ID G00292620]

 

“Enterprises seek hardware support services from used-hardware resellers and third-party maintenance (TPM) providers for benefits such as cost savings, requiring IT procurement professionals to assess where these services will be most effective.”

- Gartner, Used-Hardware Resellers Offer Hardware and Support Cost Savings, February 2015, Foundational October 2016 [ID G00270507]

 

“To achieve greater savings, some enterprises consider TPM support, especially for postwarranty data center equipment or for networking equipment at campus or remote locations.”

- Gartner, Competitive Landscape: Partnering With Third-Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization, July 2017 [ID G00327262]
 

“Customers will often switch to TPMs when the original warranty runs out rather than renew the OEM support contract due to significant increases in OEM postwarranty pricing.”

- Gartner, Competitive Landscape: Partnering With Third-Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization, July 2017 [ID G00327262]

 

“Use support from used-hardware resellers and TPM providers when flexible terms and conditions are required.”

- Gartner, Used-Hardware Resellers Offer Hardware and Support Cost Savings, February 2015, Foundational October 2016 [ID G00270507]

A Definitive Free Guide to Building Customized Maintenance Solutions

Network Maintenance Guide - Hybrid SUpportThe Value of a Hybrid Support Strategy

Discover the ways a hybrid support strategy can work for you.

Employing a hybrid support strategy can help you right-size your support for your organization's unique needs. 

But what does a hybrid support model entail?

Hybrid support means using a combination of OEM support, third-party maintenance (TPM) offerings, and a spares program to provide coverage for your technology infrastructure. 

This guide delves into the following:
  • What is third-party maintenance?
  • The role of a spares program and the secondary market
  • Finding the right combination of support for you
  • The OEM service contract myth
  • Real-world examples of how hybrid support works

Get your free copy of The Value of a Hybrid Support Strategy