Just last week, I attended an industry conference in Madrid and listened to an IDC presentation, in which the analyst explained that 42 percent of the world’s enterprise IT departments are now using Third Party Maintenance (TPM) and the two primary reasons: “Cost savings” and “easier to do business with.”
By now, you have undoubtedly heard the stories of Cisco conducting entitlement audits to verify compliance or impose penalties on those who are unable. If you are not familiar with this issue or its history, I would highly encourage you to read Grant Patten’s (our VP, Service Delivery) article from a few weeks ago. The article is entitled (click the link to read): What Cisco and Traditional TPMs Don’t Want You To Know; Why We Need a Better Maintenance Solution.
“Educate them. But don’t OVER-educate them,” that was a former boss’s direction before pitching my former company’s solution to a client. He was afraid that if a prospect truly understood the economics of Cisco third party maintenance (“TPM”), they would choose to do it themselves rather than buying maintenance from us. My goal today is to “OVER-educate” you by opening the kimono on the economics of the industry.
As a relatively new addition to many Enterprise IT departments, ITAM teams have come a long way since their origins in the early to mid-2000s.
You may not be completely familiar with this concept, but there exists a small (but, rapidly growing) industry of independent IT support providers all around the world. They are NOT the OEM, nor are they fiscally attached to any OEM. Such independence permits this unique industry to be free from OEM tech refresh strategies or any other sales tactic that does not directly serve your healthcare organization’s best interests.
The Federal Trade Commission (FTC) has told manufacturers that their approach to monopolizing repair and support by putting warranty void stickers on products and in their disclaimers is illegal under the Magnuson-Moss Warranty Act, a law passed back in 1975.
Hewlett-Packard Enterprise announced they will no longer sell low-end “commodity” servers to large cloud computing customers. Most of the cloud companies have been going directly to contract manufacturers in Taiwan or China to have servers built to their specifications at low cost. They are no longer interested in brand name products or their high costs.
Cisco 65xx Series Switches has been the best-selling switch for well over a decade. Cost of maintenance on these series of switches has been a pain point for many organizations. List prices for SNT (8x5xNBD) and SNTP (7x24x4) prices are the following:
In IT, if you're not aware of the latest trends, then you're bound to be left behind. Whether it's keeping up with the chatter on Reddit, or doing your own research, third party maintenance providers are one of the fastest growing sectors. As organizations are looking for new ways to efficiently maintain their complex IT infrastructure, third party maintenance is quickly becoming the wave of the future. With extensive service loopholes to jump through, organizations are growing tired of waiting for immediate and expert IT support for their IT assets. It is no wonder that Original Equipment Manufacturers (OEM) are losing ground to innovative third party maintenance providers who are able to provide exceptional customer service at affordable rates. Companies that were losing tons of time waiting for service from their OEMs are now riding the new wave and achieving significantly better resolution times, without sacrificing coverage by partnering with companies like XSi. And, organizations are able to reclaim control over how their IT assets are managed and streamline maintenance to be done faster, without adding extra tasks. It is estimated that by 2020, most organizations will be using some form of 3rd party IT maintenance arrangements.