Shhh… It's a secret! Third Party Maintenance

Ever find out about something new only to find out that it wasn't really new at all? Not only that, but that many before you had made the discovery and were already reaping the benefits.   That's fine, as Alexander Pope said:  "Be not the 1st by which a new thing is tried, nor the last to lay the old aside."  So, rather than lamenting over what cannot be reclaimed, I have come to embrace that I am now blessed with the ability to take advantage of it and can't wait to share the news with others, who like me were previously in the dark.

For years I had been working with customers and encouraging them to make sure to keep their equipment warrantied by the manufacturer.  Advising them "Don't go on the tightrope without a net."  The risks to the business were too critical. 

Fast forward to today.  80% of our customers IT budgets are spent to maintain status quo and a large portion of this it tied to vendor maintenance.  That leaves only 20% of their budgets available to bring on new applications that enable the organizations to take advantage of the technologies and services I offer.  Technologies and services that can bring about transformation of their businesses.   In trying to solve this conundrum for our customers and help them to recognize the benefits of revitalizing their organizations through improved communications services, I stumbled upon Third Party Maintenance (TPM).  These TPM Services offer lower cost technical support for the key vendor offerings.  I am talking substantially reduced rates with easier administration because they are provided through a single source.   So we have centralized contract and support administration.  Yes, Virginia there is a Santa Claus!  The same technical support for products and applications, hardware replacement, patching, etc.  So how is it that I never knew about this?  Well reality is that the Vendors are never going to share this information, they count on maintenance dollars.  Many sell hardware just to get the maintenance.  So, and unless you were among the select group of companies using these services by these exclusive organizations, you didn't realize it.  Recently however, Gartner, Forrester and IDC² all published articles on the topic and so the secret is out.  Savings can be achieved in a number of key areas:

1.       Lower Hardware Replacement costs

2.       Reduced TAC (Technical Assistance Centers) - Live help

3.       Eliminated Software Support costs

4.       Extended refresh cycles on hardware and software

This is really good news for all of us.  These saving can be used to accomplish a number of key initiatives such as funding for: 

1.       Outsourcing IT to a managed service  - allowing exiting staff to refocus on core competencies and project completion

2.       New technology introduction (SPB/SDN) that will enable faster, non-disruptive new application introduction

3.       New applications that improve business processes and revitalize communications

4.       Additional staffing, enabling project completion

Now, "any change, even for the better is always accompanied by drawbacks and discomforts¹".

For example: 

Quality Concerns:  Some will be will be fearful that they will not get the same levels and quality of service.   This was my initial concern, but having investigated this a bit, and seeing organizations such as Walt Disney, I was put at ease.  Disney does NOT accept lower quality service, I suspect that it is actually better.
 

Vendor Resistance:  Guaranteed, you will hear resistance and pushback from the Vendors.  No doubt, your Cisco Rep is NOT going to be happy to see you cut off SmartNet (Smart for them, expensive for you).   Maybe a few less Box Tickets to your favorite sporting events.

Refresh Policies:  You may also need to redo some long engrained policies around hardware refresh.   But Gartner/Forrester/IDC are all saying the same thing:  Why replace equipment that is performing the exact same function it was when purchased and that is still working, has an MTBF (Mean Time Before Failure) of 15+ Years?²

So, consider a change that will allow you to be the hero to the team, because you will be able to say yes to some of the projects on hold for budget, and can help your organization begin its transformation.

¹ Arnold Bennett

² Challenging the Status Quo on Maintenance Contracts and Refresh Cycles to Lower Costs