Maintenance costs force new storage purchases

Maintenance charges of more than US$30 per G/byte per year are limiting users’ ability to keep functional storage hardware for longer than the length of the three-year warranty, according to Meta Group.

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By  Neil Denslow Published  July 4, 2002

Maintenance charges of more than US$30 per G/byte per year are limiting users’ ability to keep functional storage hardware for longer than the length of the three-year warranty, according to Meta Group.

The analyst house says users are increasingly requesting four-year warranties on new systems, but they are still facing expensive maintenance for existing storage infrastructure.

It adds that large vendors with a ‘critical-mass maintenance infrastructure and user presence’, such as IBM, Hitachi, StorageTek and Fujitsu, are now attacking this high-margin third-party maintenance market. Users are being offered 30%-50% in annual savings, usually on older, more stable equipment, and effective pricing leverage with incumbent vendors.

“Users should exploit initial procurement leverage — and credible third-party alternatives — to negotiate extended warranties and aggressive post-warranty maintenance pricing of less than US$10 per G/byte per year,” advises Rob Schafer enterprise data center strategies, Meta Group.

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