CASE STUDY

 

Global Manufacturer Saves $4 Million by Refining Its Hardware Refresh Strategy

To address inconsistent support, a lack of communication, and increasing service calls for IBM storage maintenance, an international manufacturer turned to Service Express to improve service efficiencies and establish reliable support.

Following years of exceptional service and expertise, the manufacturer was ready to partner with Service Express to meet its EMC storage support needs.

Location
Grand Rapids, Michigan

Industry
Manufacturing

$4M
in CapEx savings

3 years
Added to useful
equipment life

Extra time & cost savings redirected to essential IT projects

Manufacturer Saves on Data Center Maintenance

Challenges Uncovered

Implementing the traditional OEM three-year refresh cycle

After evaluating the company’s EMC support needs, Service Express identified underlying problems:
  • Spending multimillion dollars on CapEx every three years due to EMC dictating the refresh strategy
  • Refreshed equipment provided little to no performance improvements
  • Facing rising OpEx spending to plan, coordinate and provide internal resources for a refresh every three years

The Service
Express Solution

Add disk space and extend the life of EMC equipment by three years

Service Express offered a more effective approach to the OEM-endorsed refresh cycle:

 

  • The Service Express hardware solutions team evaluated performance and capacity needs on all EMC systems to determine necessary upgrades
  • Presented reliability data for EMC hardware showing it to be stable long after the OEM-recommended refresh timeframe
  • Added additional disk space to meet the company’s storage capacity and to extend the life of equipment
At first, the company’s IT leaders were unsure of the implications of an extended hardware life cycle. The common assumption is that devices have a higher failure rate toward the end of their useful life. However, when looking at over 25 years of support ticket history, the data shows that hardware is stable long after three years. The graph below indicates that disk storage experiences a failure rate of ≤.2%.
Drive Failure Rate Over Time

The Results

CapEx and OpEx savings shifted to fund essential IT projects

As a result of the extended refresh cycle, the company saved $4 million in CapEx costs. By postponing the hardware refresh, additional savings were reflected in OpEx costs in terms of time, staffing and other resources for the large-scale initiative.

With a new hardware refresh strategy, the IT department has more control in planning for its next refresh. The cost and time savings can be redirected toward other resources and essential IT projects.

Service Express

Data Center and Network Third-Party Hardware Maintenance

4.8

Gartner Peer Insights | Service Express
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