IT Asset Audits: The Key To Controlling Maintenance Contracts

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Posted on Wednesday, March 13, 2019

Cost control remains a major concern for CTOs who need to free up more of their IT budget for strategic projects. Maintenance contracts for existing systems are a perennial drain on resources– and there are two very good reasons for that.

1. Annual contract price increases

OEM maintenance contracts have several pain points, one of which is the annual price increase. Most contracts retain the right to apply an annual rise of 20% or more. This can mean year five of the agreement costs twice as much as year one.

As your IT estate increases in size, so does the annual cost of running servers and storage arrays. Unless your CFO agrees to a corresponding 20% annual increase in IT budget (highly unlikely) you will have less to spend on strategic projects each year.

2. You don't know what you’re paying for

The second issue is down to the complexity of managing an increasing number of maintenance contracts. As your storage estate grows, so too does the number of agreements that need to be administered. 

Despite the best efforts of your asset manager, it is incredibly hard to keep track of the licenses. It is even harder to determine whether the systems in question are still in use, or whether you are paying for unnecessarily high (and expensive) SLAs.

Time to audit. And reassess.

To avoid paying too much for your hardware maintenance contracts, you must first understand what you have in place. This means conducting an in-depth audit that looks at the storage assets you have in place and the maintenance contracts covering them.

The audit allows you to re-assess coverage needs and to attempt negotiation of a better price with your OEM. The reality is however that the vendor will probably not offer any dramatic improvements in terms of price. But you can use the results of the audit to obtain a quote from a third-party provider like CDS, who delivers comprehensive maintenance services at half the price of the OEM equivalent. 

To see how CDS can save you cash for your strategic projects, please get in touch.

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