Technology Refreshes vs Hardware Upgrades - Which option is right for you?

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In due course IT Administrators have to handle Equipment that is nearing its expiration, whether on paper or literally. In such a situation, you are left with a few choices..

The first method is for Original Equipment Manufacturer (OEM) Services for Hardware refreshes. These refreshes are usually made mandatory, necessitating a refresh even when there is no need. It is the conventional way of dealing with expiring Hardware. The other method is upgrading the Technology of existing Equipment even if it is rendered unserviceable by OEMs. A Third-party Maintenance Service Provider helps you achieve this and gives you more power over your Assets. Let us dive deep into understanding the methods and determine what model works best for you.

When is a Refresh or New Equipment Purchase needed ?

The Refresh Cycle of Hardware refers to replacing Businesses' Hardware or Software after three to five years. However, every Business has unique refresh needs. So, the duration of the Cycle varies. According to Research from Dell. Companies wish to retain their Servers for an average of four years. This duration is longer than recommended and can deteriorate the system's performance. When the Equipment no longer yields the desired output, refreshing it with newer, more updated versions becomes necessary. This measure enables faster Data processing and an increase in overall efficiency.

However, upgrading them in a timely fashion is crucial. Refreshing too soon will result in wasteful expenditure. On the other hand, additional delay in refreshing leads to decrease in productivity and loss of Business. Before going for an Upgrade, identify your IT Infrastructure needs and take a call accordingly.

How to approach Hardware Upgrades efficiently ? The role of Third-party Management

A Hardware Upgrade only makes sense if it eventually increases your System's Efficiency, Speed and Interoperability. When your Assets reach EOL/EOSL Contract Termination, consider taking the following steps :

  1. Continue with OEM Services for the initial three to four years of the OEM Contract. This method covers Software Upgrades and Hardware Repairs.
  2. Gradually decrease the dependence on OEM Support and limit their help to Software Updates only.
  3. Before your Contract is about to expire, consider switching to TPM Services. your TPM provider will guide you in managing your Assets efficiently. They do so by making sure that the Equipment continues to add value to your business for as long as possible.
  4. Use OEM Services conditionally for Critical Hardware. You can employ TPM Services for EOSL Equipment your Enterprise still wishes to use

Thus, going for a Hybrid IT Maintenance System, will immensely work. With the combined powers of OEM and TPM, yu get more customizable options and more significant savings on Maintenance. Trust only a Reliable TPM Service Provider.

Why switch to a Third-party Maintenance Provider ?

If your Equipment is under Warranty and starts to malfunction. OEM covers its Maintenance by providing new parts. However, the Maintenance Prices are increased by at least 15% per Annum for the first 5 years of the Equipment's purchase. This Cost Structure gradually worsens as the Equipment reaches its expiration.

Once Cisco, IBM, HP etc issue their Equipment's End of Life (EOL) or End of Service Life (EOSL), OEM starts coming into action. OEM stops Servicing, Updating or Renewing your Server, Storage and Network Equipment. They also stop providing additional Upgrades or Firmware Support post EOL/EOSL.

The Business Model of an Original Equipment Manufacturer (OEM) is based on making a Sale by pushing unnecessary but mandatory hardware Refreshes of your own Equipment. Thus, you end up replacing the Equipment that is already functioning optimally. You are burdened with high Post-warranty Prices if you choose to retain your previous Equipment. This is how OEMs corner you into buying new Equipment and making a wasteful IT Expenditure.

Third-party Maintenance of TPM will prove to be highly resourceful at a time when OEMs are imploring you to Upgrade your Functional Hardware unnecessarily. You can easily save upto 80% o Total Equipment Maintenance Expenditure by switching to TPM Services.

In addition, there are a host of other advantages that you will benefit from immensely once you make the switch

  1. TPM ensures that your Hardware Upgrades are meaningful. Instead of selling you Brand New Equipment baselessly, they increase your Equipment's Longevity, thereby saving atleast 80% in your overall Data Center Maintenance Expenditure.
  2. With more focus on improving the Equipment's lifecycle, the Return on Investment (ROI) on the Hardware increases enormously.
  3. OEM serves only one Manufacturer in most cases. You will have to maintain Multiple Contracts for your Equipment, which can be tedious. On the other hand, TPM Engineers are skilled in handling the Equipment of numerous Brands. All your Agreements, Terms and Conditions come under one Contract, enabling you to operate more hassle-free.
  4. OEM restricts your options by increasing your Post-warranty Costs and continually persuading you into buying new "advanced" Hardware. In contrast, TPM is a system of Data Center Management that gives you power by putting your requirements in the front seat. With highly Customizable Solutions to your specific needs, TPM Providers provide superior Customer Service and don't just sell their Products to you, unlike OEMs.

Contact thomastech to Extend the Life of Your Existing Hardware

Thomastech is a team of dedicated Individuals passionate about helping you skyrocket your efficiency by providing a superior system of IT Asset Management. Our Third-party Maintenance Engineers are trained to maintain various Storage, Server and Network Equipment of multiple Manufacturers. They have OEM and TPM Certifications. Every Term and Condition will come under one single Contract, thus mitigating the hassle of juggling through numerous Agreements. We create a highly functional ecosystem that bridges the gap between inefficiency and dexterity with cost-effective solutions that produce results instead of burning a hole in your pocket. We provide excellent Customer Service with lucrative Solutions since our primary target is Customer Satisfaction, not Sales.

To schedule your meeting and evaluation for your business, visit our website or call our office at 1-888-838-8796.

Takeaways from the Article

Understanding the Difference:

The article emphasizes understanding the difference between technology refreshes and hardware upgrades. Technology refreshes involve replacing old equipment with new, while hardware upgrades mean enhancing the existing technology.

Analyzing Business Needs:

It is crucial to analyze what your business specifically requires. Whether it’s a technology refresh or a hardware upgrade, it should align with your business goals and needs.


The article suggests evaluating the cost-effectiveness of both options. Consideration should be given to the long-term benefits and sustainability of the investment.

Vendor Support and Warranties:

Consider the support and warranties offered by vendors when choosing between a technology refresh and a hardware upgrade. Vendor support can be a decisive factor in making the choice.

Strategic Planning:

Strategic planning is essential. Having a well-thought-out plan will help in making an informed decision that benefits the business in the long run.

Reminder of the Post’s Main Point:

The article focuses on guiding businesses in choosing between technology refreshes and hardware upgrades by considering various factors such as business needs, cost-efficiency, vendor support, and strategic planning.

Frequently asked questions about Technology Refreshes vs. Hardware Upgrades

What is the difference between a technology refresh and a hardware upgrade?

A technology refresh involves replacing outdated equipment with new technology, while a hardware upgrade means enhancing the existing technology to improve performance.

How do I decide between a technology refresh and a hardware upgrade?

Analyze your business needs, evaluate the cost-effectiveness, consider vendor support, and engage in strategic planning to make an informed decision.

What should be considered when evaluating cost-efficiency?

Consider the long-term benefits, sustainability, and return on investment when evaluating the cost-efficiency of technology refreshes and hardware upgrades.

How important is vendor support in choosing between the two options?

Vendor support is crucial as it can influence the decision by providing necessary assistance and warranties that add value to the investment.

Why is strategic planning essential in this decision-making process?

Strategic planning helps in making a well-thought-out decision, ensuring that the choice aligns with business goals and brings long-term benefits.

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