For ages, enterprises with IT infrastructure relied on original equipment manufacturers (OEMs) for hardware support. That has gradually changed with the introduction of third-party maintenance companies.
The third-party hardware maintenance service market is expected to grow by $2 billion by 2026. In other words, more enterprises are expected to contract these services. But what exactly do they offer? And how do they differ from hardware manufacturers?
In this article, we will provide the following:
The case for this service for modern data centers and enterprise networks.
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Third-party maintenance is defined as “hardware support services provided by an alternative party to the original manufacturer.”
While there are nuances to the level of support a TPM company provides, generally, they provide the same services as the OEM would before the end of the warranty period.
A TPM may offer a wide range of services. It may include remote technical support, on-site support, operating system support, repairs, device or component replacement, remote hardware monitoring, logistical support for moves, lifecycle assessment, asset disposal, and cost management.
So, in many cases, TPM providers may offer services beyond the scope of simple hardware maintenance that OEM offers under its warranty.
OneCall, PivIT’s maintenance program, offers services beyond bare hardware support, extending guaranteed spares, maintenance strategy analysis, and depot repairs.
Some OEMs also offer third-party hardware maintenance support. For instance, Cisco third-party maintenance involves the network equipment giant’s channel partners who provide support services under their banner.
While these providers are technically third parties, they’re not truly an alternative, as they’re affiliated with the OEM and may use the same pricing structure and timelines for contracts. So even though another company is providing the service, it’s effectively controlled by the OEM.
Often termed as “hybrid” support by OEMs, combining their and third-party provider services, such alternatives aren’t true third-party maintenance choices.
When discussing what third-party maintenance is, it’s equally important to discuss what it’s not.
While TPM providers offer various services, primarily hardware support, that help enterprises run efficiently, they don’t run or manage the infrastructure. You don't outsource their management when contracting a third party for hardware maintenance services. In other words, enterprises still need IT support onboard to help with their day-to-day operations (for example, configuring servers, monitoring network performance, or updating firmware).
Similarly, a TPM provider doesn’t offer security services. While their support is crucial for a reliable IT security strategy, they’re typically not responsible for securing access to the equipment.
To truly understand the need for TPM providers, we must revisit OEM support. OEM-provided maintenance is the default choice for enterprises.
When you buy equipment from the OEM or another reseller, you have a warranty period from the OEM. This initial maintenance period typically lasts for up to three years. Once this warranty period ends, the OEM may extend its support at a premium. All this while, they may announce the end of life (EOL) and the end of service life (EOSL) for the equipment, which essentially marks the end of any support from OEM (no software updates, patches, or replacement in case of failure).
When it comes to OEM vs. TPM, EOSL is the main distinguisher. Third-party maintenance providers continue to offer support once the equipment has reached EOSL, typically within five years.
The OEM support structure is intrinsically biased because the main money-maker for these companies isn’t maintenance contracts but the sale of equipment. They obviously want their customers to refresh their equipment and buy newer models after a certain period.
This doesn’t mean that the equipment doesn’t work anymore. Often, enterprises find that their legacy devices are still functional. In some cases, they may be dependent on such appliances. For instance, a server’s lifespan may be up to ten years, lasting well beyond its EOSL.
This EOSL business and expensive post-warranty OEM support created the very TPM industry.
You’re probably wondering: what about the cost? TPM is cheaper than OEM support, particularly for legacy equipment nearing or reaching EOSL. The services of top third-party maintenance providers are akin to those provided by the manufacturers but come at a much lower cost.
Here’s OEM and third-party maintenance compared head-to-head:
|
OEM |
TPM |
|
|
Duration |
1 to 6 years with the possibility of an extension |
3 to 10+ years |
|
SLAs |
Same day, next business day |
Same day, next business day |
|
Technical Expertise |
OEM-certified engineers |
Vendor-specific and industry-level certifications |
|
Multi-vendor support |
Only select OEMs |
Yes |
|
Cost |
Increases as equipment ages |
Flexible based on coverage terms |
When comparing OEM and TPM support, it’s important to understand the lifecycle of the equipment.
While the exact lifespan of a device may vary by type, technology, and use, generally, data center hardware can last anywhere from five to ten years.
If you’re buying new, your device most likely comes with an OEM warranty, which may last up to three years. During this time, it wouldn’t make sense to opt for TPM support, especially if warranty is included in the price.
However, things get tricky after this warranty period. OEM may offer support but at a premium, i.e., you’ll have to pay for hardware maintenance directly from the manufacturer.
This is when you may think about opting for TPM instead, particularly if there’s no OEM support offered.
Once the device has reached its EOSL date, it will no longer be supported and considered legacy. This can happen at the five or six-year mark. The device is considered legacy (even though it may still be functioning well).
Now, your likely option is TPM support, should you decide to continue using your device. Most TPM providers specialize in providing support for legacy hardware.
Now that you understand what TPM is exactly, let’s explore the advantages it offers that make it worth opting for.
Most enterprises that choose to go with a TPM provider do so to save money. As hardware ages, support from OEM gets expensive. In many cases, it may not be an option as the vendor ceases support once equipment reaches EOSL.
But the more important question is how much can you save with TPM. With OneCall, our clients have saved as much as 60 percent on maintenance.
Again, OEMs often keep their post-warranty support prices high as a means to encourage clients to refresh. That’s not a strategy for TPM providers, so they can offer better prices with the same level and quality of services.
OneCall Saves Customer $75,000 Compared to Smart Net
It’s true that some vendors offer support for other vendors’ equipment, but TPM providers offer more flexibility in this arena. Even if you choose to go with OEM support for other brand equipment, you confine yourself in terms of cost and equipment lifespan. They won’t offer the savings a TPM provider would and won’t provide support beyond EOSL.
TPM providers are simply better positioned to offer multi-vendor support. As they provide maintenance to many enterprises, their engineers are trained to work with different vendors.
Your equipment may easily last several years after it has reached EOSL. With the backing of a third party for maintenance, you can continue to use the device without worries. Depending on the service agreement, the TPM provider may also offer spares.
By opting for TPM support for the post-EOSL period, you essentially delay your refresh cycle, which can be interpreted as savings on the capital expenditure (CapEx) end. This is another way TPM helps you save money, at least temporarily.
Another underrated benefit of hiring a third party for IT maintenance is that you can also benefit from other related and relevant services offered by a single provider. Many TPM providers have emerged from hardware supply businesses, so they can provide procurement or resale services.
Alongside OneCall, PivIT offers several professional services under the EXTEND banner that help organizations focus on the bigger picture. From on-demand engineering talent for projects to IT asset disposal (ITAD), enterprises can benefit from various professional IT services in one place.
One of the myths about TPM support is that it can’t be as good as OEM support. If you choose the right partner, you can get the same level of service and quality. Much like the engineers provided by OEMs, the engineers on TPM’s payroll are also certified.
At OneCall, we offer four-hour and next-business-day SLAs that align with the SLAs offered by OEMs. We have over 800 sparing depots spread across 160 countries, so no matter where your data center or field office is located, we can get support and spares to you in the agreed-upon timeframe.
PivIT's Sparing Global Depot Network
There are plenty of reasons to go with TPM support for your organization’s IT infrastructure. But to succeed with a third-party IT maintenance strategy, you must choose a partner that ultimately aligns with your business strategy.
Learn how OneScan can help you devise a foolproof hybrid maintenance strategy.
Those are some of the key questions that typically arise when discussing third-party maintenance.
When it comes to hardware maintenance, OneCall has all the right ingredients to help you make your IT infrastructure reliable, save on operational expenses, and grow your business strategically.
Get coverage tailored to your networks and confidence knowing when something happens, your spares will be there. Learn more about OneCall and how it can resolve your maintenance woes.
TPM or third-party maintenance contracts offer hardware support through a company separate from the manufacturer. TPM is often used in the IT industry to get cheaper support, especially for legacy devices.
TPM providers offer maintenance throughout the lifecycle of the hardware. However, if your equipment is new, it’s probably best to stick with OEM support. TPM support can be availed once your purchase has lived past its warranty period.
Post-EOSL period is the best time to take advantage of TPM and extend the lifespan of your hardware.
To choose between OEM and TPM for hardware support, assess the technical requirements for your data center and the remaining lifespan of your equipment.
Also, consider how long you plan on using the equipment. Finally, get the prices from both the vendor and TPM to compare the cost of maintenance head-to-head.