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Proactive Hardware Upgrades Save Money; Increase Productivity; Reduce Corporate Stress and Downtime

By the DynaSis Team

For company management, the thought of replacing server hardware is daunting, at best. Not only are servers and other core hardware expensive, but the disruption that replacement causes can be considerable. As a result, many firms bumble along with aging servers, replacing them only when they reach the end of their life cycles―or worse, when they fail altogether.

DynaSis has long been a proponent of proactive hardware replacement on optimally timed cycles to reduce disruption and maximize ROI. IDC, a leading technology research firm, has published an opinion piece that proves the value of this approach.

Impact of Time on Server Costs

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In February 2012, IDC released The Cost of Retaining Aging IT Infrastructure, which found that the cost advantages of owning aging infrastructure diminish considerably over time. The paper also found that failure rates begin to accelerate rapidly around year four―far earlier than many companies plan for replacement.

In the paper, the IDC researchers noted, “The pattern of stretching the useful life cycle of servers has a number of near-term benefits for customers in terms of depreciating assets over a long period of time or prolonging an existing lease. But if a transition to new technologies has been deferred too long, then the time comes when the system has fallen far behind the performance and cost-efficiency levels being offered by multiple vendors in the marketplace today.”

They went on to note that this issue is having greater impact as time goes on, because the performance of processors is not often doubling each year due to the availability of multicore, multiprocessor system designs with improved system speeds. The paper found that a “buy and hold” strategy actually adds costs, primarily due to three factors:

  • Hardware maintenance costs rise over time, and performance lags behind more current server offerings.
  • Energy efficiency is not as advanced in older server models — leading to rising power/cooling costs in the latter years of the server's usable life cycle.
  • Applications software and systems software fall behind the current versions available in the marketplace, and security may require frequent updates. After five years of use, the cost of replacement climbs.

Companies that upgrade prior to year four enjoy a return on investment (ROI) of more than 150% over three years. Most importantly for budgeting, the payback period for the upgrades, on average (per IDC), was 11.7 months.

IDC also notes that the trend to virtualization is further increasing the efficiency gains and cost savings of regularly planned upgrades. Virtualization also fosters better resource utilization and gives companies more granular control over server workloads, with the result being higher availability.

DynaSis can help your firm plan for, select and procure new server and other infrastructure hardware that is appropriate for your current and future business plans. We will also deploy and configure it for you. Optionally, for companies wishing to avoid a large capital outlay, our Ascend solution lets you lease hardware from us, with appropriately timed, planned upgrades and 24/7 proactive management and support included, for a set monthly fee. To learn more, fill out our inquiry form or give us a call.

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