Hardware hassles? Time to make it someone else’s headache

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  • 8/2/2019 Hardware hassles? Time to make it someone elses headache

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    Hardware hassles? Time to make it someone elses headacheClive Longbottom, Service Director

    Quocirca Comment

    Hardware hassles? Time to make it

    someone elses headache

    http://www.quocirca.com 2012 Quocirca Ltd

    For most organisations, the lifecycle of IT

    equipment is straightforward: buy it, provision it,run it, deprovision it and dispose of it. Simpleand reasonably effective.

    However, unless its handled carefully, its anapproach that could be doing organisations a

    major disservice. Starting with purchasing, for

    example - just how good a deal is your businessgetting?

    Assuming your organisation is a mid-sized one or even a large one buying a few hundred to a

    few thousand servers per year, then the costswill be considerably lower than the list price. But

    is the organisation getting the same deal as onethat buys tens of thousands of servers per year?

    Doubtful - and when this is taken across the

    whole IT estate - servers, storage, networkingequipment, desktops, laptops, printers, multi-function devices, maybe even smartphones and

    other devices - the cost differential can be

    significant. One option here is to use a managedIT lifecycle management partner to bringeconomies of scale.

    In the running of the equipment, again there areeconomies of scale from provisioning equipmentbefore delivering to site. Maintenance, repair andoperation costs can be driven down through

    shared resources and cheaper spares, again

    driven by the scale of purchasing.

    But its at disposal that you can see the real

    savings. Most organisations run their IT

    equipment until its relatively useless to thebusiness. The equipment will have been written

    off at the book-value level, and in Europe theWaste Electronic and Electrical Equipment (WEE)directive means the equipment cannot just be

    dumped, so theres generally a hefty cost

    involved in its disposal.

    For those with a discrete equipment disposal

    process, the costs associated with getting rid of

    storage securely can be significant.

    Funds from hardware disposal

    However, if the disposal is linked with the overall

    lifecycle management process, expense can not

    only be minimised, but the equipment may havea value that can be used to offset costs - and

    even, in many cases, provide additional funds for

    new equipment.

    Each item of equipment has some inherentvalue. That value is affected by various factors -

    for example, obviously over time it willprogressively fall. The launch of a new model will

    also push down the value because organisationswont want the old version, which others will alsobe dropping causing a glut on the second-hand

    market.

    A change of technology - for example, thegreater adoption of 100GB Ethernet - can force

    down the value of equipment that cannot

    support the new standards.

    A good managed IT lifecycle managementpartner should be aware of the timings of these

    variables and advise on the optimal inherentvalue of a specific piece of equipment. Bydeprovisioning it and disposing of it in a securemanner and then selling it on as a working piece

    of equipment, as a bare-bones system or for

    parts, the money can go towards replacing itwith new equipment.

    Intelligence on future releases

    Managing this set of variables effectively is not

    easy. The IT lifecycle management partnerrequires solid ongoing relationships withtechnology vendors to know whats coming down

    the line.

    They need good purchasing agreements tosecure the best acquisition costs. They also must

    understand the legal aspects of equipment

    disposal and of secure data destruction. They

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    Hardware hassles? Time to make it

    someone elses headache

    http://www.quocirca.com 2012 Quocirca Ltd

    also require solid technical skills in provisioningand running equipment.

    Choosing the right IT lifecycle managementpartner can ensure the organisation always hasthe optimal IT platform through the replacementof equipment at the right time with the best

    overall cost equation in place. Having an optimalIT platform available means the organisation

    should not be constrained by IT - and allows it tocompete more effectively.

    Lifecycle management should not be regarded asa nice optional extra. For those organisationsthat see IT as core to their business, it should be

    a necessity.

    You can download Quocircas free lifecyclemanagement report on the various stages of an

    IT maturity model and what is involved inputting in place a full management approach.

    This article first appeared on

    http://www.techrepublic.com

    http://www.techrepublic.com/http://www.techrepublic.com/http://www.techrepublic.com/
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    Hardware hassles? Time to make it

    someone elses headache

    http://www.quocirca.com 2012 Quocirca Ltd

    About QuocircaQuocirca is a primary research and analysis company specialising in the business impact of information technology

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