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The Cost Effective Alternative to Annuity-Based IT Support Contracts

12th November 2017 | In Lifecycle Services
It’s impossible to guarantee a 100% operational network, 100% of the time. Faults and problems from time to time are inevitable. When something does go wrong, you want to be sure it’s fixed in the shortest time possible to minimise disruption. And financial loss. Annuity-based IT support contracts work on an annual fee basis providing comprehensive cover across your network with support on hand, as and when you need it. This ensures your network operations are restored within the stated SLAs. These prove a reliable and cost-effective solution for many businesses. But those with a larger estate may end up paying over the odds for a service to cover their entire network. When in fact they may only need to use it for one or two parts of their system per year.

What’s the alternative?

There is an alternative which still guarantees minimal downtime while saving money for larger organisations. When an organisation houses a large infrastructure, it can often be cheaper to buy spares in bulk. And then work with a logistics partner to have these delivered when required rather than provision annuity-based IT support. This works particularly well when a company houses a large install base of medium to low-end equipment in which faults are predominantly hardware related. With a thorough understanding of the equipment within an estate, its age and the failure rates experienced, it’s possible to effectively plan for a workable spares inventory. Some IT support and repair suppliers will agree to provide storage for these spares for an agreed monthly fee. And ship them to the required locations as they are needed. The faulty equipment can be sent to the same supplier for repair. Then it’s added back into the spares pile for future use. Because the spares are already owned by the company in question, this can work out cheaper and still provide a reliable support option.

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