IT Procurement: Strategic Cost-Cutting via Hybrid Hardware Maintenance Best Practices

Still too often, companies buy IT hardware assets (servers, data storage and networking equipment), follow all OEM advisories and are inadvertently wasting IT budgets. Whether your organization is transitioning to greater cloud reliance or focused on cost-cutting to offset 2020 marketplace disruptions, there is great value in understanding the basics (and best practices) of Hybrid Hardware Maintenance.


What is Hybrid Hardware Maintenance?

This term refers to when in-warranty data center hardware are maintained by the OEM, during the warranty period. But, all or a portion of your post-warranty hardware assets are maintained by an independent hardware support provider (also known as Third Party Maintenance).

Where’s the Value? Help Me Project the Cost-Savings Potential:

For eligible hardware assets, cost reductions of 60-80% from OEM pricing are normal. But, to truly project the impact possible, check out this past blog: Third-Party Maintenance: Reliably Forecasting the Savings Potential

Other Companies are Trusting these Independent Providers?

In 2017, Gartner analyst, Christine Tenneson, co-authored a report stating that 71% of the world’s 100 largest companies are now using independent hardware support providers. Perhaps this XSi white paper can help explain why: Hardware Support Remodeling – Tangible IT Cost-Cutting Measures

What Must be Prepared to Further Investigate or Get Detailed Pricing?

If IT operations, or IT procurement or your IT Asset Management team is unfamiliar with “Hardware Milestone Dates,” these are key to asset eligibility and this past blog will be useful: Hardware Lifecycle Milestone Dates: What are They? How can They Help? Milestone dates are also key to best practices designed to maximize hardware TCO (Total Cost of Ownership).

If your team has not collected this actionable data to proceed, XSi has built a proprietary Configuration Management Database (CMDB) to proactively help you collect and build out this data for every asset in your environment. This is a no risk, no-cost assessment that’s often completed in under two weeks.

What if I’m Required to Undergo a Formal RFP and/or Seek Competitive Bids?

We’ve written a three-part blog series that’s been incredible helpful to our clients:

Who is XSi?

Founded in 1990 and recognized by Gartner, XSi helps companies deploy a hybrid hardware support model to save important hardware operating expense budget dollars. XSi provides hardware support options for networking hardware, servers and data storage assets. In addition to servicing enterprise accounts, it also supports the Top 10 Systems Integrators and 42 federal agencies.

Next Steps?

If any readers would care to discuss next steps, please visit our Contact Page and submit your details for a speedy response from our Account Management team.

About The Author

Todd founded XS International in 1990, helping to build an independent IT support organization led by pioneering executives with proven tenures at Cisco Systems and Juniper Networks. He holds a board of director positions with the world’s two most prominent associations for independent IT support providers – Service Industry Association (SIA) and ASCDI (hardware resellers). He was a founding member of the Digital Right to Repair Coalition (now known as, and continues to serve on their Board of Directors. Very much a serial entrepreneur, Todd earned his Bachelor’s in Finance from Ohio State University and later completed a three-year Entrepreneurial Masters Program, given by the Entrepreneurs’ Organization & MIT Enterprise Forum. He now resides in the greater Dallas area with his family.

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