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Recurring Revenue Authors: Elizabeth White, Yeshim Deniz, Zakia Bouachraoui, Pat Romanski, Xenia von Wedel

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Reduce Costs with Third Party Maintenance

save time and moneyThere are many reasons to reduce costs with third party maintenance (TPM) and the foremost is the amount of money you can save. Estimates show that when you use TPM, you can save nearly 30 – 60% of costs normally incurred and is the classic example where you can get more for less. It can also avoid unnecessary costs in the IT business, such as avoidance of labor costs as well as the ability to extend your initial investment. This is advantageous when the company is facing a crisis and payment of employees shows a drain on the company resources. When overhead costs are reduced, both the customers as well as the company benefit, as the services that they provide are also reduced. 

Many companies now believe that when they reduce costs with third party maintenance it becomes a vital selling point in their favor. They can now beat the competition by providing low maintenance costs and at the same time can promise faster maintenance. This is made possible because the company will no longer have to depend on the efforts of their own team. A recent survey showed that customers of ORACLE choose to stay with it when the overall quote was dramatically reduced with the help of third party maintenance. TPM can be provided for servers, routers, and storage systems. 

There is a drawback when you choose to reduce costs with third party maintenance. Most TPM normally does not provide automatic upgrades. Yet when you calculate the amount of money that can be saved, this proves to be a minor issue when the company can negotiate for custom-made contracts with the third party. It is more advantageous than going with the rigid contract normally provided by the original manufacturers of the software. 

Third party maintenance also gives personalized services and one contract can cover multiple vendor products. This way the annual maintenance usually charged by the individual vendors can be dramatically reduced while increasing the efficiency of the customer’s services. Moreover, the confusion that can occur when working multiple vendors can also be avoided. Therefore, when compared to costs incurred through OEM, TPM seems to be the logical choice. 

 

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Unitiv, Inc., is a professional provider of enterprise IT solutions. Unitiv delivers its services from its headquarters in Alpharetta, Georgia, USA, and its regional office in Iselin, New Jersey, USA. Unitiv provides a strategic approach to its service delivery, focusing on three core components: People, Products, and Processes. The People to advise and support customers. The Products to design and build solutions. The Processes to govern and manage post-implementation operations.

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