OEM Support vs. Third Party Maintenance
Data Center MaintenancePark Place Technologies
IT leaders across the globe face enormous challenges responding to the COVID-19 pandemic. CIO magazine indicates that due to COVID-19, now 40% of IT budgets will remain flat and another 39% will decrease in 2020. Infrastructure and Operations teams face great pressure to deliver both cost savings initiatives and delivering fast-tracked initiatives to support the remote workforce.
Is there an opportunity to save on hardware and support costs for infrastructure for servers, storage and network with an alternative to the OEM? Are there inherent risks associated with leaving maintenance to someone other than the OEM?
Let’s compare original equipment manufacturers (OEM) support and Park Place Technologies’ third-party maintenance (TPM).
What is OEM Maintenance?
When companies buy hardware products like servers, storage, and network from brands such as Cisco, HPE, and NetApp, the OEM typically provides an initial period of support and maintenance during a 1-3 year period after purchase during its warranty coverage. After the warranty expires, the OEMs offer post-warranty support options at an additional cost. Oftentimes, the equipment will be phased out with varying degrees of obsolescence including end of life and end of support life classifications intended to ensure upgrades to their newer equipment.
What is Third Party Maintenance?
Third Party Maintenance is simply hardware support provided by someone other than the OEM and is referred to as an independent service provider or TPM provider. With Park Place third party maintenance, you’ll find an ally who creates maintenance agreements that fit your organization and your IT infrastructure environment. You will gain an operational advantage with flexible contracts and service agreements, a global 24/7 support center with immediate incident escalation, and direct access to our badged field service and advance engineering teams.
Choosing between OEM Maintenance and TPM.
Due to the pressures of getting cost savings quickly, cost reduction for the routine maintenance of servers, storage, and networks will be a major component of this review. Other factors we want to consider are hardware expertise, ability to extend the hardware lifecycle, coverage/response times for support, and flexibility provided to the company with the infrastructure to support.
What makes OEM Maintenance the best?
OEMs provide warranty service during an initial 1-3 year period after purchase and provide options to extend this support. They developed and manufactured the product and are viewed as the experts on the brand since they have deep engineering knowledge and provide necessary software updates and upgrades. The OEM will often phase out products and support in order to create obsolescence and encourage technology refresh.
What makes Third Party Maintenance the best?
Third party IT maintenance providers such as Park Place often can reduce maintenance costs dramatically for organizations by up to 50% while reducing your overall operating expenses. TPM reduces response times as they support many OEM brands (and are in many cases trained and certified across OEM products) eliminating shift of the blame between brands versus the root cause and focus on your uptime. Geographic coverage and access to parts are key for global businesses. TPM allows you to extend the lifecycle of your hardware beyond end-of-support life so you aren’t forced into an early refresh on hardware that meets your needs.
Determining the best fit for your business.
The five things we wanted to compare are summarized below and an advantage has been assigned.
1) Maintenance Costs
TPM will reduce your maintenance costs but the savings will vary based on your server, storage, or network equipment. Advantage Park Place.
2) Hardware Expertise
OEMs have deep engineering expertise on their products. TPM providers such as Park Place also have extensive engineering training, but our engineers are experienced across multiple OEM products. For newly released and brand- new families of hardware though, its Advantage OEM.
3) Hardware Lifecycle Extension
Extending the lifecycle of existing assets without impact to operations should be reviewed. Are there opportunities to postpone technology refreshes and avoid capital expenditures at this time? Can products be supported longer and have a plan for replacement parts without increased support costs? Advantage Park Place.
4) Coverage and/or Response Times
TPM allows for the ability to mix and match service levels within a single location. The OEMs have standard service offers. Global coverage can be handled by TPMs while OEMs will often use outsourced help. OEM support will spend time ensuring it is their brand during an issue rather than solving the issue. This allows TPM to reduce the time from call to dispatch. Advantage Park Place.
Do you have the ability to mix and match service levels? Do you want to manage many OEM contracts or just a single contract? Most OEMs each have a standard and you’ll have to manage to each. Advantage Park Place.
Is OEM Maintenance or Third Party Maintenance Better?
The answer could be a hybrid model; however, at a time when organizations need to reduce maintenance costs – TPM from Park Place is a great way to get substantial savings. If a company recently procured new hardware, then changing may not be in the best interest. However, if you have varying OEM support programs and see the need to simplify your support program and extend the lifecycle of your server, storage, or network infrastructure without impact to performance, then TPM is a great place to start.
Let’s have a conversation.