Sunday, August 16, 2015

How to optimize your IT budget

"The profit lies in purchasing". A well-known slogan, which is among diehard merchants and freshmen in business administration equally known. Far too often this rather simple approach is also transferred to the budgets of IT departments.

Across all industries know CIOs and CTOs, the demand for cost discipline or even budget cuts. In the age of global competition and tight margins an understandable demand, but which is difficult to comply with. Even the highest quality and reliability of the infrastructure required by the operational units at the same time.

A simple change in strategy CTOs and CIOs could, but significantly reduce the cost of network infrastructure and thus improve returns for their businesses. However, these opportunities often remain untapped, while cost-conscious managers are some good alternatives open. For example, if the end-of-life of a Cisco router, announced no further features are implemented from that date and it remains a year in which the system is still available for purchase.

In the next step, it is no longer possible to transfer the system to a new maintenance contract. Here at last leaves of OEM customers with the product finally out in the cold. Due to the short life cycles of these business practices created for the customer in very high costs.


Cost of IT infrastructure continues to be very high
Analyst firms such as Forrester Research have with studies and surveys to again and again that the infrastructure between 40 and 50 percent of IT budgets devours. With the cost of new hardware around 10 percent are to be considered additionally premiums that must be spent on maintenance and repair. A savings in infrastructure would thus achieve a correspondingly large effect on the overall budget. But it is precisely on this cost item throwing those responsible seldom a critical look.

In the study, " Challenging the status quo on maintenance contracts and refresh cycles to lower costs "from the year 2013 Forrester Research concludes that in nearly half of the company about every four year network components to be replaced, often already earlier. Most of these technical elements, in this case have no or no measurable wear. Fully functional devices are prematurely redeemed and returned at best, with large financial losses to the manufacturer as part of a trade-in program.

The gag from maintenance contracts and product life cycles
The reason for this avoidance cost driver is the business policy of system vendors, OEMs and manufacturers. Since the company's installed hardware usually always has to relate through intermediaries as VARs or OEMs, they have traditionally depended on them as partners when it comes to servicing and maintenance. Typically, end-users at the same time a contract for the purchase of hardware and maintenance. No company can afford to even build the necessary expertise to all the components used to wait from his own hand. Thus, the company issued in the hands of their partners.

After all, the support discontinued for a product, sooner or later have no other option than the system - either switch, router, server, or storage device - exchange. No responsibility can and wants to take the risk not to receive assistance in the event of a technical problem.

Hardware pre-owned + Independent maintenance = cost

Whether car, smartphone or consumer electronics - for households is the acquisition of technical equipment, pre-owned - so needed - nothing unusual. Purchase, processing and sale of second-hand goods are for some companies that base their business model. Companies can do the same households and relieve their IT budgets significantly when they purchase a pre-owned hardware and let the maintenance carried out by an independent provider. So far, however hinder reservations on new concepts makers often from using the financial benefits associated with them.

Since high demands are placed on a company's infrastructure in terms of reliability and system stability, it is advisable to look closely at the experiences of aftermarket suppliers can prove in this segment. If the preparation of the hardware certified? The company specializes in products of certain manufacturers? Existence of official partnerships? It offers its customers' sufficient information on possible alternatives, for example ,in the form of

Cheat Sheets?

Certifications guarantee quality
Reputable providers examine the purchased hardware very closely and prepare them if necessary on so that they meet the high quality demands that are placed on modules in data centers. Only after a series of intensive tests, the components are added to the sale. The test method should to the highest and most demanding criteria and standards such TL9000 and ISO 9001: 2008 to be certified and their fulfillment are continuously monitored. In Curvature the hard test methods, even results in a lower failure rate (0.5 percent) than in new appliances. The network laboratory tests such as routers and switches up to port level with line speeds of currents up to 10 Gbit / s.

Customers are on the safe side, if you choose a provider who gives guarantees for the pre-owned hardware. Finally, companies must be able to rely on the fact that they sit up no misnomer or just get the high quality durable components that you ordered. That cavort on auction platforms and the Internet also fraudsters who either provide no or only inferior goods, is known. Therefore, interested parties should contact only to incumbents.

Hardware and maintenance from a single source
As with any other purchase also arises here the question of the support. And precisely because shows a strength of multi-vendor maintenance and support. The independence of the company is directly reflected in the budget. The quasi-monopoly position of OEMs allow this to be calculated in servicing exorbitant prices. Independent service providers can undercut these prices with the same quality significantly and allow the customer as more leeway in his IT budget. CIOs can use it to postpone investments in new acquisitions over the years while saving large sums for maintenance. Besides, they also prove to the environment or a service by avoiding high-priced electronic products.

Unlike rigid maintenance contracts from OEMs and manufacturers, CIO and CTO can select exactly the mentioned model the systems and maintenance intervals, which make sense from their perspective, and thus reduce 50 to 90 percent of their costs. Since the maintenance also includes a used system, can thus be even tight budgets optimally utilized. For example, a company deliberately purchase systems of the previous generation and have to wait an affordable price - without any noticeable loss of performance or in the scope.

Conclusion

With the purchase of hardware from the secondary market and the booking of a manufacturer-independent maintenance cost-conscious CIOs can get out of their budgets more easily. Provided the choice falls on an experienced and reputable supplier in the secondary market.

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