Reduce Storage and Data Center Costs with Third-Party Maintenance

In 2017, Gartner produced a research report on how organizations of all sizes can lower their acquisition
and ownership costs by utilizing third-party maintenance (TPM). TPM is available at a lower cost while
also being a more flexible option to meet your specific business needs.

Maintenance Accounts for Over 15% of the Storage Acquisition Cost

Gartner stated that maintenance accounts for over 15% of the storage acquisition costs. Because
storage is a business-critical system and the data they hold is invaluable to any organization, maintenance is viewed as a requirement.

While maintenance is critical, most organizations are unaware that they have cost-effective options to the expense support that OEMs offer. Third-party maintenance (TPM) offers an alternative. TPM is often available at 40% to 70% below the OEM list price. That difference can help IT teams to stretch their budgets and direct more resources towards adding value to the business.

Storage with OEM Maintenance

Storage Equipment Cost: $250,000

OEM First Year Maintenance: $37,500

Total Purchase Cost: $287,500

Storage with Third-Party Maintenance

Storage Equipment Cost: $250,000

TPM First Year Maintenance: $11,250

Total Purchase Cost: $261,250

Company Savings: $26,250

Reduce Storage Total Cost of Ownership

Companies typically purchase maintenance in 1 to 3-year contracts. Those contracts get renewed through the entire lifecycle of the hardware. If a piece of hardware fails, those companies need to know that replacement equipment is immediately available.

Gartner estimates that the average useful life of storage systems is between 7 to 8 years. By year 7, OEM maintenance costs can exceed the original purchase price of the equipment.

OEM Lifetime Maintenance Cost

OEM Yearly Maintenance: $37,500

Useful Life of Hardware: 7 Years

Total OEM Maintenance Cost: $262,500

TPM Lifetime Maintenance Cost

TPM Yearly Maintenance: $11,250

Useful Life of Hardware: 7 Years

Total OEM Maintenance Cost: $78,750

Company Savings: $183,750

Extend the Useful Life of Equipment

While the useful life of storage hardware can be 8 years, this is almost always longer than the original equipment manufacturer (OEM) will support the systems. The OEMs will put a product at end-of-support (EOS) before organizations are ready to upgrade the hardware.

Traditionally when an OEM places a system on their EOS list, organizations have been forced to upgrade to new equipment. They do this even if they are not ready to upgrade. TPM, on the other hand, will support that equipment well after the manufacturer has ended support. This gives you an alternative to costly upgrades and replacement purchases.

Flexible Support Options

TPM can provide a flexible alternative to expensive OEM maintenance and support. Organizations can choose the type of coverage they want based on their specific business.

24x7x4 Priority Support

8×5 Next Business Day (NBD)

Product only or technician on site

Hot spare part pool

Altnet is dedicated to the technology channel and is the first channel-only third-party maintenance provider. To help our end users and reseller partners, we fully automated the maintenance quoting and ordering process. Simply look up your manufacturer part number on our home page and select the support levels that are right for you. Need additional help? Contact the TPM experts at Altnet today.

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