CASE STUDY

 

Retailer Saves $264K Annually
on Data Center Maintenance

A retailer was challenged by finance to find new and efficient ways to cut costs in their large-scale data center. To counter limited IT budget dollars, its leaders were tasked with finding transformative ways to decrease spending while meeting their business objectives.

As a result, the retailer started looking for a third-party maintenance provider with expertise in lowering costs and developing long-term partnerships. The company turned to Service Express for data center solutions.

Location
New York, New York

Industry
Retail

$264K
In OpEx savings

60%
Decrease in maintenance costs

Extended hardware refresh cycle by 2 years

Challenges Uncovered

Following the traditional OEM refresh cycle

The first step of the process was to connect with stakeholders to learn more about service gaps with the current provider and how these gaps were impacting operations. This led to more conversations about expectations and how to address the immediate demands more efficiently.

Service Express identified several roadblocks including:

  • Overspending on post-warranty maintenance by paying for 24/7 coverage on all systems regardless of the criticality
  • IT department spending time installing shipped parts from partner despite paying for 24/7 onsite service
  • Following the traditional OEM refresh cycle – resulting in the high cost of refreshing equipment every three years

After Service Express presented the identified challenges, the retailer decided to move forward with strengthening its support strategy and use the advantages of a consultative partnership with Service Express.

Retailer Saves on Data Center Maintenance

The Service
Express Solution

Extending the
hardware refresh cycle and improving service delivery

In addition to improving service levels, the Service Express solution centered around addressing the current hardware refresh cycle which consumed a large percentage of the IT department’s CapEx and OpEx budgets.

Given that the existing equipment met the retailer’s needs, Service Express suggested a new approach to its refresh strategy:

  • Extending the hardware refresh cycle from three to five years
  • Customizing service levels by criticality
  • Providing an onsite engineer response for all required repairs

The Results

Created a long-term strategy to reduce OpEx and free up internal resources

Opting for Service Express’ recommended solutions, the company reconfigured its hardware refresh cycle and equipment coverage approach. As a result, the IT department saved over $264K annually in OpEx costs. This 60% decrease in maintenance spend offered additional peace of mind and freed up time for the team to spend more resources on essential projects and enjoy the helping hand and increased productivity provided by Service Express solutions.

Service Express

Data Center and Network Third-Party Hardware Maintenance

4.8

Gartner Peer Insights | Service Express
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