Third-party Maintenance is a globally accepted term and concept. Many companies utilize this solution because of the added value it delivers. To understand why IT decision makers adopt TPM in their IT environments, you must first understand what Third-Party Maintenance entails.
Let’s start off with a short definition of Third-Party Maintenance:
Third-Party Maintenance is a unique, cost-effective alternative to maintenance support provided by the original equipment manufacturer (OEM).
TPM providers are skilled in extending the life-cycle of IT hardware infrastructure (server, storage and network equipment) beyond the manufacturer’s warranty period.
When you consider the typical lifecycle of IT equipment, most IT decision makers will refresh their IT equipment every 3-5 years after the initial purchase, based on OEM mandates. Not all organizations are aware of the true useful lifecycle of each piece of equipment. They are deceived by the end-of-life and end-of-support (EOL/EOS) dates received from the manufacturer and believe that they have no other choice.
TPM providers, like StorEx, provide an opportunity to keep your existing equipment and dictate the refresh cycle as opposed to being constrained by an OEM. With this in mind, one can start to understand why TPM is a practical option. By adopting a TPM support program with StorEx, clients can realise savings in excess of 50% on OEM maintenance costs. This immediately empowers the business as it benefits from budget savings and can utilise these for more strategic areas of growth for the business.
The TYPICAL SUPPORT AVAILABLE FOR YOUR IT INFRASTRUCTURE:
|Warranty Support||Post- Warranty Support|
|OEM Support||OEM and TPM Support||TPM or limited OEM Support||TPM Support|
|0-3 years||3-6 years||6- 9 years||9-12+ years|
|Generally all new equipment purchases have an OEM- warranty of +/- 3 years.||
Initial warranty period expires. OEM will occasionally extend the warranty for 1-2 years but at a much higher rate.
StorEx can support your out-of-warranty IT equipment at a fraction of the cost.
OEM may announce end-of-life/ end-of-service-life date and stop or outsource support.
StorEx can still support your out-of-warranty IT equipment.
OEM support is no longer available.
StorEx can continue to support your out-of-warranty IT equipment.
So why can’t the OEM provide the same level of support?
It is on their equipment after all.
To answer this question, let us look at a short comparison:
ORIGINAL EQUIPMENT MANUFACTURER (OEM)
Generally, the OEM is driven by developing and selling new IT equipment. They give end-of-life/end-of-service-life dates to intimidate the customer and force them into upgrading their equipment due to NO or HIGH-COST maintenance plans.
THIRD-PARTY MAINTENANCE (TPM)
Providing maintenance on end-of-life equipment is the key focus of StorEx. Our service offerings help the customer avoid wasteful spending in acquiring new equipment, without a real need and enable clients to upgrade their equipment when it has reached its true limitations.
When looking at the above comparison, it is clear that the OEM’s business model is focused on selling new equipment to turn a profit, whereas a TPM provider focuses purely on maintaining your existing equipment. In many instances OEMs can provide post-warranty support, however as this is not their core business, they might not always have the right resources and material in place and therefore outsource it at a higher price.
Besides the extra charges the OEM ask to outsource support, why is TPM support less expensive than the OEM?
To answer this, we will discuss how StorEx, with over a decade of experience achieves this cost-saving. Consider the following factors:
- We have an in-house electronic repair hub that refurbishes spares back to OEM specifications.
- On average 1 of our spare parts can feed off on 5 SLA contracts.
- As maintenance is our key business, we purchase most of our spare parts in bulk, which leads to economies of scale.
- Over time our Supply Chain Management division formed long-standing partnerships with logistics and parts suppliers. These alliances establish our position as key account which translates to cost-savings when purchasing spare parts.
- We do not have the overhead costs for research and development for new hardware or software like the OEM does.
Starting to understand why people turn to Third-Party Maintenance?
Give us a call to set up a meeting: +27 11 468 3746 or request an obligation free quote.
We are committed to working with you to identify any areas where cost-effective, alternative IT maintenance could be implemented and give you expert guidance about the best maintenance options for your need.