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