Why do EMC support renewal quotes spike?

Why do EMC support renewal quotes spike?

Posted on Friday, September 15, 2017

Any CTO who has ever had the pleasure of managing ageing EMC storage arrays will know the pain of the annual maintenance renewal quote. As soon as a system reaches the end of the initial maintenance agreement, costs quickly escalate.

The closer those arrays get to end of service life, the greater the annual increase. Eventually, CTOs find themselves calculating whether replacing hardware is actually cheaper than prolonging the lifespan of existing assets.

The license renewal scam

The reality is that these contract renewal costs are very carefully calculated to create exactly that dilemma. EMC profits are reliant on selling new hardware on a regular basis. Which means finding a lot of new customers – or pushing existing clients into upgrading their existing assets.

CTOs are naturally cautious. In almost every business case, system stability trumps new functionality, so an unnecessary upgrade is always the worst-case scenario. Fully aware of this fact, EMC (and every other OEM) generate lavishly expensive maintenance renewal quotes.

Compared to the inflated support contract cost, new hardware looks extremely reasonable. Rather than being forced into paying more for the same service they received in the previous year, CTOs are instead pressured into an upgrade they would probably rather avoid.

Putting an end to OEM pressure 

Third party maintenance services provide a credible, affordable alternative to OEM contracts. Here at CDS, we offer a similar (or better) quality of support, but our contracts are typically 30 to 50 percent lower than the EMC equivalent.

This means that our clients can keep the same, stable operating platform that their business relies on and save money in the process. By regaining control of their data center, they are free from the annual maintenance ransom demands from OEMs.

To learn more about what CDS can do for your business, and how to avoid excessive maintenance costs increases, please get in touch.