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HOW THIRD PARTY MAINTENANCE PROGRAMS ARE

REDUCING IT EXPENDITURES

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IT maintenance and support contracts are big business for original equipment manufacturers (OEM). In many cases, organizations are overpaying thousands, if not millions of dollars for IT assets and leaving large gaps in service coverage for critical IT components. When service is needed, the technical support request process is often cumbersome, lengthy, and too complex to navigate. Without specific contract ID’s for each IT asset, getting the help you need to repair or replace a key component can seem impossible. In this traditional IT maintenance model, OEMs retain all the control over how service is scheduled, distributed, and when IT resources are considered to be obsolete. In the end, it is the OEM’s bottom-line that is increased, at the expense of your organization's IT budget.

Even the most organized corporations have difficulty tracking every service agreement, assets under contract that are no longer used, preventing lapses in coverage, and ensuring IT costs are kept at a minimum without sacrificing continuity.

Research shows that the average business spends

6.4% of its annual revenue on IT expenses.

Introduction

HOW THIRD PARTY MAINTENANCE PROGRAMS ARE REDUCING IT EXPENDITURES



Third party maintenance providers will work with you to regain control over your IT asset management and implement systems and tracking procedures to ensure you know what assets are being used, where, and when and how they should be decommissioned. Reducing IT maintenance costs is our focus and with a flat pricing structure, clients can rest assured that the maintenance costs per asset will never increase.

By determining where your organization’s IT assets are in their lifecycle and strategically positioning maintenance and support agreements accordingly, significant cost savings can be achieved.

According to Gartner’s IT research,

80% of total IT costs occur after the initial purchase.

This is primarily due to high and ever increasing maintenance costs imposed on organizations by the OEMs. It is common practice for OEMs to increase annual hardware maintenance prices by 15 percent per year for the first 5 years of purchase, and however they see fit thereafter - even up to an annual increase of 100 percent for end-of-life products.

The Third Party IT Maintenance Approach

Many third party maintenance providers such as XSi, offer services focused on simplifying and reducing the cost of IT maintenance and support while providing an expert, customer-friendly service capable of supporting complex, mission-critical, multi-vendor IT environments. With this cost-savings approach designed by network and supply chain experts, companies are able to begin to separate from OEM policy driven models. This enables organizations to regain control over their IT assets by implementing a fully integrated system to reduce ever-increasing escalating maintenance costs.



With third party maintenance, organizations are able to:

The Benefits of Third Party IT Maintenance

Leading businesses, in both the government and private sectors, are increasing their profitability by leveraging the cost savings and superior technical support that third party maintenance providers offer. If organizations are able to cut the fat in their IT maintenance agreements to achieve a cost-effective, prolonged solution, firms may save the $700 per user per month they often spend on IT expenses.

Realize

30-60% savings over traditional OEM maintenance support

Implement monitoring systems to track all SLAs, with customizable reporting options

Support trends across their enterprises and across the entire IT asset portfolio

Decrease workloads of IT staff while reducing the risk of contract lapses

Reduce the cost of maintenance agreements by consolidating them into one managed contract



GartnerHardware maintenance is being redefined as a non-strategic IT cost and low cost alternatives should be sought out to minimize these costs. Third party maintenance agreements provide both flexibility and cost savings that may not be achieved with OEM contracts.

AccentureClients, large and small are turning to third party maintenance options to optimize their IT infrastructures and achieve higher ROI. With leading third party maintenance providers increasing the level of service and support, companies can get unprecedented access to experienced IT support teams for a fraction of the cost. Most OEM will outsource services to cover all of their products, and in the end, your company suffers receiving lackluster support and not knowing who to reach out to, to get the service your need. Third party maintenance agreements give you the consistency to know who to call when you need support without the hassle of locating contract numbers and coordinating with multiple vendors.

Forrester ResearchLeveraging third party maintenance solutions unlock longer hardware life cycles for companies. With traditional OEM contracts, companies are under the influence of when the OEM decided to discontinue service. Third party maintenance providers are extending the life of the IT infrastructure, helping companies realize significant cost savings and time from having to implement new systems or upgrades before they are truly needed. In a day and age where IT budgets are already tightly constrained, third party maintenance is freeing up IT capital to be used to grow businesses.

IT Analysts Recommend Third Party Maintenance

Leading analysts agree that third party maintenance is preferred over traditional maintenance agreements.



At XSi, we are leading the way in providing superior third party maintenance to a host of organizations. We complete a thorough audit of your entire IT infrastructure and review your service level agreements and update all locations and the presence of each asset. Our asset management strategies pinpoint which decommissioned assets remain on contracts as well as essential assets that have no coverage. At XSi, making your IT maintenance a simple and streamlined process is our ultimate goal.

As a XSi client all of your IT assets can be covered:

Under one contract - no need for multiple maintenance agreements with multiple vendors, saving you in redundant and unnecessary IT expenses.

With one technical assistance center - call one number to speak with highly trained and certified technicians for all your technical support needs

By one cross-vendor network expert team available around the clock to troubleshoot any technical failures until a resolution is achieved.

Our network engineers take a holistic approach and examine the lifecycle of your IT assets to determine your organization’s IT roadmap.

Based on this personalized analysis, we segregate your IT infrastructure into three distinct categories:

Hardware best kept under your current OEM maintenance agreements

Hardware eligible for a hybrid maintenance approach with XSi services backed by OEM escalation

Hardware better positioned under third party maintenance arrangements

XSi - Revolutionizing IT Maintenance



Higher operational efficiencies, lower IT costs, and immediate technical support are all possible with third party maintenance agreements. The days of OEM policy driven models are numbered as organizations are opting for more flexible, comprehensive, and affordable third party IT maintenance arrangements. XSi is leading the way in implementing this unified movement to identify excess IT costs, install thorough asset tracking systems, and improve the overall use of IT assets for a variety of organizations. As a Maintenance Lifecycle Support and Methodology Provider, XSi manages all facets of an organization’s IT assets from the point of acquisition until they are decommissioned. Our cost savings are achieved through a collaborative and analytical approach that emphasizes superior customer service to help organizations achieve optimal efficiency and independence, when possible, from their existing OEM service level agreements.

1 https://www.gartner.com/imagesrv/media-products/pdf/xs-international/XS-International-135SB34G.pdf2 https://www.accenture.com/us-en/insight-market-spend-trends-report-q3-20143 http://www.businessnewsdaily.com/4483-unnecessary-computer-hardware-upgrades.html

If you believe your organization would benefit from a complete IT audit to reduce IT expenses or to find out how to start driving your own IT roadmap, contact XSi today at 1-877-548-2836 (US), 1-770-574-6732 (International), or visit our website at http://www.xsnet.com.

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