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Old servers are an expensive asset

Old servers are an expensive asset

12th March 2020 | In Server
Why buy something new, when you can keep your existing hardware under support and keep it running, save some money? It sounds like it makes perfect sense. Apart from of course, that it doesn’t save you money.

I recently completed an upgrade for a customer where they came to us with that exact scenario. Their business had a policy to run servers for a minimum of 5-years, preferably 7-years. They sweat their assets to save cost. The servers they had were just coming out of 5-years support, so they were looking for support pricing for the next 2-years.

18x HPE ProLiant DL380p Gen8, Dual E5-2630, 64GB RAM

2-years Next Business Day Foundation Care = £2,200 x18 = £39,600

We were able to replace 18x HPE ProLiant DL380 G8 with 3x HPE ProLiant DL360 G10.
Combined performance was increased 32%
  • Rack Space reduced from 36U to 3U (91% reduction)
  • Power draw reduced from 5,329W to 1,130W (78% reduction)
  • No change in total system RAM (18x64GB = 1152GB / 3 = 384GB per server)
The bill for the new hardware with 5-years Next Business Day Foundation Care support was more than £10,000 cheaper than adding 2-years support to their existing hardware.

As an added bonus, the next project was to extend their VMware support for another year for this cluster. They had been quoted £280 per CPU = £280 x36 = £10,080.

The new cluster of 3x servers only requires 6x CPUs, £280 x 6 = £1,680, that’s a saving of another £8,400.

Overall the customer saved nearly £20,000 by buying new, more powerful servers with 5-years support, rather than buying 2-years support on their existing hardware.

And this of course isn’t even like for like. If we were to support their existing servers for 5-years to make it match what the new servers were supplied with …

Support existing hardware for 5-years, Next Business Day Foundation Care = £19,800 x5 = £99,000.

Replace with 3x new servers with 5-years Next Business Day Foundation Care = £29,000

That’s a saving of over 70%! When they were phoning round looking for support pricing they were hoping to save 5%.

Old servers are a very expensive asset.

Julian Lawn, Head of Enterprise Servers and Storage, Hardware
Get in touch if you are in a similar position and want to discuss your needs.

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