Keep the lights on (KTLO), whilst necessary to keep IT functioning and it from breaking down, is not good from a business perspective. This is the IT expenditure used for performing daily operational tasks and for routine IT support and hardware maintenance, which includes both preventive maintenance and remedial IT services. Gartner calls it “dead money”.
Surveys conducted by Gartner and Forrester show an average of 70 to 85% IT spending for KTLO activities. ITSM believes it should be less than this. In fact, we believe it should be no more than 50%.
As a business or IT leader, the following reasons may prompt you to think about your current hardware maintenance strategy and seek solutions to address the expensive KTLO :
OEMs influence IT purchasing decision. It even dictates the industry standards. If that has been the case with your company, it is time to really look into the value of your IT investment and create a strategy based on your specific requirements, not based on what the manufacturer tells you. Your organisation can make considerable savings by reviewing your hardware maintenance contracts and rethinking your strategy.
Your organisation can achieve a 50% savings or more by working with third-party hardware maintenance vendors.
Third-party maintenance (TPM) can provide you with the same levels of network support for both new hardware and legacy equipment.
“Third-party maintenance (TPM) can provide you with the same levels of network support for both new hardware and legacy equipment.” [Click to tweet]
Since TPM providers like ITSM are vendor agnostic, they can provide IT support and maintenance services to networking and data centre hardware products from various OEMs. They provide a cost-efficient alternative to Cisco Smartnet. At the same time, provide EMC Hardware Maintenance Services, IBM Server Hardware Maintenance Services, and HP Blade Hardware Maintenance Services.
Quoting Gartner, “TPM contracts will offer customers an average of 60% savings off of OEM support list prices. However, depending on equipment type, location and product density, Gartner has seen that the range of savings with TPM contracts is 50% off OEM list up to 95% off OEM list.”
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