Hardware Refresh or Upgrade: What Makes More Sense in 2023?

Hardware has a finite life, and you need to replace it at some point. Enterprises with significant on-premise hardware infrastructure have two choices: upgrade hardware or refresh it. And no, those are not the same things!

Upgrades are much simpler and cost less than hardware refreshes. Typically, organizations follow a set refresh cycle, which ranges from three to five years. However, refresh cycles are no longer a hard and fast rule in today's multi-vendor environment. 

More importantly, your equipment’s lifecycle may run way beyond the stipulated life span from the OEM, especially with quality maintenance from a third party. Throw in the challenges enterprises have faced procuring hardware in the last couple of years, and the situation becomes even more confusing.

This article will help you make the best decision for your business during these uncertain times: upgrade or refresh hardware.

See how you can save with PivIT:

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What Is the Difference Between a Hardware Refresh and an Upgrade?

A hardware upgrade refers to upgrading equipment components, such as memory, processing power, or storage. It simply means upgrading the capacity or performance of a piece of equipment. 

On the other hand, hardware refresh means replacing the old hardware (i.e., buying new equipment. 

It costs much less to upgrade hardware than to buy new. Although there are many ways to reduce the cost of a hardware refresh, it’s generally expensive. 

A hardware refresh depends on the lifecycle of the equipment, which typically ranges from three to five years. Upgrading, on the other hand, depends on the performance requirements. 

When Should You Refresh Hardware?

OEMs recommend refreshing hardware as soon as the newer models are available. However, that may not be cost-effective for every enterprise. 

The criteria for a hardware refresh may also vary by the importance of the equipment. Critical equipment, like servers or routers, takes precedence over non-critical devices regarding refreshes, as they need to be dependable. 

Here are the scenarios when a hardware refresh is needed:

• Critical equipment is nearing or has passed the end of service life (EOSL) and is no longer maintained by the OEM. 
• Equipment, such as servers, shows signs of failure, increasing the risk of downtime. 
• The business needs of the enterprise have changed and require newer technology to achieve the goals. 
• The company must comply with data protection and privacy regulations or industry standards. 

The refresh cycle may differ by the type of equipment as some devices tend to last longer. 

When Should You Upgrade Hardware? 

Hardware upgrades may be needed even if the equipment is not old and working perfectly. It’s more dependent on performance needs. Here’s when upgrades become necessary:

• The equipment is three years or younger but cannot handle or process data efficiently. 
• A device audit shows a slowdown in load times, data throughput, bus speed, or other similar performance metrics. 
• Storage equipment is running at full capacity with no room for additional data. 
• The business anticipates significant growth requiring hardware to handle more data than its current capacity. 

Upgrades are typically part of the performance optimization strategy. It’s possible to upgrade both old and new hardware per the requirements. Sometimes, it may make more sense to simply refresh the hardware, especially if it’s too old and requires replacement soon. 

What to Do in 2023?

Both hardware upgrades and refreshes are reliant on the availability of equipment. The supply of IT hardware has been incredibly slow during the last two years, mainly due to manufacturing and supply chain disruptions. This began due to the COVID-19 pandemic lockdowns but spiraled into a global supply chain crisis. 

In 2023, things are gradually going to get better, with lead times expected to return to normal by the end of the year or early 2024. That may hamper the efforts for a hardware refresh, as new equipment may take months to be delivered. 

On top of the long lead times, 2023 also poses other challenges, particularly an economic slump. There’s a threat of recession, which will directly impact spending in different industries, including technology. High inflation has caused many companies to cut costs and brace for a financial downturn. 

Amid all this uncertainty, a hardware refresh may not look like such a good idea. It’s an expensive undertaking, which can cost anywhere from hundreds of thousands to millions of dollars, depending on your enterprise infrastructure. 

A hardware upgrade to meet exceeding performance needs or growth is a cost-effective decision during uncertain times. For some, a refresh may just be necessary if their equipment has failed or is at the cusp of wearing out. 

Another way to delay your refresh cycle for the time being or until the global economic situation improves is to use third-party maintenance. As OEMs stop providing maintenance for devices beyond EOSL, you can rely on third-party maintenance like OneCall. 

OneCall can help maintain your legacy equipment with short-term maintenance, extending its life and delaying that expensive refresh, thereby, saving you tens of thousands (if not millions!). This is all the more important for critical equipment like servers and storage. 

An Effective Hardware Refresh Strategy

Whether you decide to go through with a hardware refresh in 2023 or delay it by a year or two, it’s important to have the right refresh strategy. Spending so much money without a strategy won’t allow you to make the best of the new equipment. 

Here are the steps to coming up with a solid hardware refresh strategy:

• Evaluate hardware needs: The first step is to analyze the hardware needs, which can change significantly over the years. Simply replacing equipment with new models may not be enough. 
  
  
• Consider long-term business goals: When deciding what to refresh and what to replace it with, keep in mind the business goals and the growth you want to achieve. Your infrastructure should be able to realize those goals. 
  
  
• Take into account compatibility: You may not be replacing everything. The new equipment needs to be compatible with the existing infrastructure. At the same time, don’t let the existing old equipment prevent you from embracing better technology. 
  
  
• Create a plan for old asset disposal: Decide what you should do with the legacy equipment based on its conditions (sell it, donate it, or dispose of it with the help of professionals).

• Set a budget: Create a budget with some wiggle room to avoid spending more than necessary on a refresh. 
  
  
• Go for the best equipment at the lowest prices: Find the best equipment that meets or exceeds your requirements and bargain for the best price. Keep in mind maintenance and warranty periods when comparing equipment from different OEMs or third-party providers. 

Make the Right Choice with PivIT

Whether you want to refresh or upgrade hardware, PivIT’s procurement specialists can help you find the equipment you need in 2023. Alternatively, should you decide to ride the economic uncertainty and long lead times with your existing equipment, use OneCall to maintain legacy equipment. 

PivIT can be your procurement and maintenance partner to help you make your infrastructure reliable!