Lower Data Center Costs With Third Party Maintenance Services – Here’s 3 Ways

If you work in a data center, manage or own one, then you know that for every piece of hardware there are OEM maintenance contracts that go with them. Like the hardware themselves, these contracts are not inexpensive, however they can be less costly than any sustained downtime and the loss of business or revenue that goes along with it. Add to this cost the fact that some hardware contains other ‘enabling’ hardware that carries its own maintenance contract and you have potentially several expensive support contracts covering one valuable piece of hardware.It is with this in mind, that many data centers look to third party hardware maintenance services (TPM). For most data centers, third party maintenance can enable four types of business value, including cost reduction, cost avoidance, business agility and risk reduction. In terms of cost reduction, here are 3 ways that TPM services can reduce budgeted, direct costs for IT labor and maintenance.

Lower internal IT labor costs. Organizations can reduce their internal IT labor costs by outsourcing tasks related to replacement hardware and spare parts, such as storage, installation, inventory, and testing. For companies that are tight on budgets – which is pretty much all companies – savings from salaries, benefits, and other employee overhead expenses can be eliminated, as is the need to hire during periods of growth.Lower hardware maintenance costs. One of the largest benefits of third party maintenance services is the fact that it can save you between 30 and 60 percent of the cost of OEM maintenance prices. Add to the cost savings the fact that you’re also partnering with highly trained engineers with experience across numerous hardware platforms and the decision to use a TPM provider becomes easy to make.Lower costs through vendor consolidation. Data centers today typically utilize hardware from numerous OEM’s, which results in the need for numerous support contracts – each of them carrying and incurring overhead. Working with one third party hardware maintenance organization for support can eliminate the need for multiple agreements.

These cost reductions can add up quickly given the high price tag the equipment and support mandates. Add to these reductions the costs you can avoid with a good TPM partner, such as delayed capital expenses and the high price tag of downtime-related opportunity costs and third party maintenance services begin to make a whole lot of sense.