Commercial Moving

3 tips to reduce IT hardware refresh costs

Tightened IT budgets have prompted IT professionals to find creative solutions for hardware refresh cycles. While new hardware boosts productivity and uptime, it is possible to extend your current equipment lifespan without sacrificing performance. Here are three tips to consider before starting an IT hardware refresh.

Tip 1: Refresh cycle, when is the best time?

It’s standard practice for most companies to do a hardware refresh every three to six years.  Although this cydle is typical, it may make more financial sense to delay or extend your hardware refresh.

Data Center Frontier offers the following comparisons between a three- and six-year refresh cycle.

IT hardware refresh cycle

Further, in a 15-year equipment reliability study, Data Center Finder found that most server and storage equipment is highly reliable for 10+ years. With this in mind, delaying your hardware refresh might help you stretch your IT budget.

Tip 2: Explore cost-effective alternatives

When a refresh is needed, consider these cost-saving options:

  • Wait for price drops: New hardware carries a premium price tag. Wait 6-12 months after launch for potential discounts.
  • N-1 generation equipment: Prior generation hardware (N-1) offers significant upgrades at a lower price point. These products usually include the latest firmware updates for optimal performance.

Tip 3: Maintenance contracts

Maintenance support contracts are a high margin add-on for OEMs. Post-warranty support is intentionally overpriced to entice you to buy the latest warrantied hardware, leading you to believe there are only two options:

  1. Upgrading equipment before the warranty runs out, or
  2. Continuing to pay for high post-warranty support.

Yet there is a third option.  Look into a quality third-party maintenance provider. These providers don’t use their support contracts to entice you to buy hardware, so there is the potential to save 30 – 70% off the price of OEM post-warranty contracts. This allows you to extend your IT refresh cycles and get the full return on investment (ROI) value of the hardware.

The takeaway

Tight budgets don’t have to derail your IT refresh. By strategically extending refresh cycles, exploring cost-effective hardware alternatives, and rethinking maintenance contracts, you can optimize your IT budget and ensure your team has the tools they need to succeed.

 

 

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