How to Reduce IT Infrastructure and Operations Costs in the Data Center

Park Place Technologies

Parker July 01, 2022

I&O leaders everywhere face unprecedented data center challenges as organizations manage revenue loss, remote workforce demands, and supply chain disruptions in the wake of COVID-19. At the same time, data center costs are continually on the rise as technology developments breed new investments and greater expenses. 

The result? Data center expenses that outweigh current revenue streams, forcing IT departments to do more with less. 

It’s high time to trim the fat in your data center, and Park Place Technologies is here to help! Third party data center hardware maintenance can allow your organization reduce operating expenses, optimize capital expenditures, and improve cash flows, without having to manage labor force costs. Continue reading to discover cost-cutting data center strategies that are better on your balance sheet. 

Reduce OpEx Costs 

An operating expense is any ongoing expense incurred to keep a business running on a day-to-day basis. OpEx spending uses a “pay-as-you-go” approach, as there are no long-term assets involved. Within the IT industry, operating expenditures account for employee wages, energy costs, bandwidth charge, equipment leasing fees, and much more. Two strategies for reducing OpEx costs include: 

1. Lower Maintenance Spend

To lower your maintenance costs, focus on your support value. Renegotiate hardware, maintenance, and support contracts, getting rid of those that are too expensive and securing lower payment schedules for others. Third party server hardware maintenance, storage maintenance, or network hardware maintenance is an affordable alternative to costly OEM support contracts, averaging anywhere from 30% – 40% less than that of the manufacturer.  

2. Lower Hardware Costs

You don’t have to purchase equipment out of the box to reap the benefits of manufacturer offerings anymore. Certified, pre-owned IT hardware is available from trusted providers, and offers the reliable hardware your testing or backup environment requires without the exorbitant price tag. Curvature, a Park Place Technologies company offers high quality, refurbished parts, with the sole difference being the prior use that makes for significant savings in comparison with buying new. 

Optimize CAPEX Spend 

A capital expenditure, or CapEx, is a one-time expense that involves the purchase of a tangible asset, usually in the form of property or equipment. Therefore, all IT infrastructure within your data center environment is a capital expenditure. Unfortunately, CapEx also applies to the cost of repairing or upgrading your data center assets over time. Below are the best strategies for optimizing on your CapEx spend: 

1. Extend Equipment Lifespan

Strive to delay the procurement of new assets whenever possible and choose an alternative to a costly hardware refresh. Third party maintenance providers can prolong the useful life of data center equipment by anywhere from 5 – 10 years past End of Service Life. Because we’re brand agnostic, our multi-vendor hardware maintenance doesn’t come with an expiration date. 

Our only objective is to keep equipment functional for as long as possible to ensure you achieve the maximum possible ROI. An extended support plan can significantly lower your maintenance costs to help you secure a better return on infrastructure investments. Extending equipment lifespan could also be instrumental in deferring costly hardware upgrades until current financial restrictions subside.  

2. Consolidate Data Center Assets

Gartner recommends consolidating data center sites. Such a move will help rid you of redundant IT assets, maintenance and support, and disaster recovery contracts. A data center consolidation strategy is vital right now, as I&Os globally are having to pack more workloads into fewer systems. 

Even in the case your organization is 85% or 90% virtualized, if the systems those virtual workloads are running on are only 20% utilized, there is room for improvement through consolidation. Savings from consolidation can range from 5% to 15% of the overall data center budget. 

Embrace Outsourcing 

“Outsourcing” tends to have a negative connotation, but managing IT on your own is difficult and far from cost effective. And though you may be striving to keep everything in-house, this can lead to unnecessarily high staffing costs. With technology advancing so rapidly, can you really afford all the personnel needed to manage your own data centers, along with the skill sets necessary to address new challenges? 

Relying on outsourcing partners on an as-needed or short-term basis may be just what your organization needs to get you through this tough economic period. Consider outsourcing day-to-day IT management responsibilities through a IT infrastructure managed services provider to improve operational efficiency and dramatically cut costs. 

Improve Cash Flow 

Can you rationalize the need for every piece of hardware within your data center? Probably not! With Park Place Technologies’ IT Asset Disposition (ITAD) service, we’ll step in securely dispose or recycle your retired assets. Consider our IT Asset Disposition (ITAD) service to minimize security vulnerabilities in your data center operations. 

Let Us Help 

At Park Place Technologies, we pride ourselves on helping organizations reduce IT infrastructure and operations costs while delivering consistent and reliable OEM-level service. In addition to providing top of the line maintenance and support, we supply certified, pre-owned parts and spare kits to make sure that your data center is business ready 24 hours a day, 365 days a year. 

For more information on how our wide selection of services can help you reduce data center costs in the coming months, get in touch with our team today!

About the Author

Parker, Park Place Assistant