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The Real Costs of OEM in Data Center Hardware Maintenance

It's easy to think, when bringing in new equipment, that the original equipment manufacturer (OEM) is going to be the best source for fixing any problems that emerge. The OEM built it, after all, and who knows a product better than the people who made it in the first place? It turns out, in the case of data center hardware maintenance, that the OEM can be a good option, but also the most expensive, prompting some to consider third-party hardware maintenance instead.

What is the True Cost of OEM in Data Center Hardware Maintenance?

OEM costs in data center hardware maintenance aren't always obvious, but they're often much higher than third-party maintenance providers.

The Gartner rule. Gartner noted an estimate that says 80% of an asset's total cost comes after the asset is actually paid for. Thus, by the time the costs are all factored in, the costs are essentially four-fold: the costs to buy the item, then the costs to maintain the item after it's purchased. Consider this figure when weighing the OEM's prices against those of a third-party maintenance provider.

Budget lost. Keeping the Gartner rule in mind, maintenance costs effectively consume between 15% and 25% of IT budgets annually. This isn't just bad news for the checks that must be written, but also for the losses in potential new projects that would be opened up if it weren't for the ongoing hemorrhaging of cash to maintenance costs.

Vested interest. OEMs, some believe, charge these kinds of prices for essentially two reasons. One, because they can. Two is a bit more complex; hardware maintenance is a high-margin operation that keeps investors happy and stock prices up. Of course, some also might note that the increasing frequency of software patches for hardware does merit some hefty price tags, but that's debatable.

One size does not fit all. Worse, OEM maintenance is often generic. If your specific situation isn't addressed, you'll need to pursue other options anyway when the OEM maintenance doesn't fit the bill. Having to effectively cover your devices twice means extra cash that's going out with little more recompense than getting back to work.

When You're Looking for a Better Option in Data Center Hardware Maintenance

Sure, most like the thought of sticking with the OEM in data center hardware maintenance, but the good news is that that doesn't have to be your only option. For a better way, get in touch with us at EmconIT. We can offer maintenance options on end-of-life hardware ranging from storage to servers, to networking, and even to tape library systems, and we can deliver protection on par with OEMs at better prices. So just drop us a line to get started with the best protection the market can offer.