The Cost of Retaining Aging IT Infrastructure
In today’s business environment many organizations are faced with budget challenges. In this case many companies opt to put off capital expenses. They are looking for alternatives to having to purchase new server hardware. Many choose to lengthen the server life cycles in order to delay the necessary investment into new hardware.
This strategy has in many cases only short-term benefits for the organization. While money is saved to avoid the capital expenditure of buying new servers, the risk that an old server fails and impacts the business performance negatively is growing. Only when using a world-class IT department or managed IT services provider to maintain the servers, can this strategy work for longer periods of times. Managed IT services are typically not capital expenditures and sophisticated technology can be used by the outsourcing partner to safely extend the life cycle of the servers.
One thing that has to be pointed out though is that if this strategy hinders the transition to new technologies for too long, then the the system(s) can have fallen far behind the performance and cost efficiency levels of newer systems. In that case the company starts to lose real money compared to investing into an upgraded IT infrastructure. To make this issue more visible, in the last few years the processor performance has practically doubled every year. If a company decides to delay the renewal of a server by two years, then they loose potentially a factor of 4 in increased processor power. This can result in costly waiting times while employees sit idle waiting for the server to finish processing their request.
The biggest issues with this strategy overall are:
- Over time the hardware maintenance costs rise
- Performance of the server lags behind current offerings
- Older servers consume more energy. This leads to rising power and cooling costs compared to newer servers.
- In many cases the systems and applications software packages cannot be updated to the current versions.
- Security gets weakened due to older applications and OS versions.
If a company chooses to lengthen their replacement cycles then it becomes necessary to partner with a top-notch managed IT services provider. Roan Solutions is such a partner for small and medium-sized businesses in the Boston and New England Region. Contact them at their website for a detailed analysis and how they can help you.
IDC and HP have performed a study to investigate the business impact of lengthening server replacement cycles. The study shows that participants reported an increased scalability and higher performance of newer systems. In combination with the reduction of server space needs as well as the reduced power and cooling meant that significant reduced costs for running the server can be achieved when renewing timely.
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