Cut your maintenance costs
While it's quick and easy to simply accept the renewal proposal your maintenance supplier sends you each year, it's also a sure-fire route to rapid cash burning. It's a healthy policy to explore maintenance cost savings on a regular basis: networks and the cost of supporting them change constantly and opportunities for savings can easily be overlooked by the unwary.
Contract renewal
Achieving a reduction in maintenance costs may be fairly easy to negotiate when contract renewal time comes around. After all, your supplier already has the necessary spares so they have no sparing-up costs to meet. Also, with 12 months or more of history to review they can see that most parts of your network simply carried on working faultlessly all year. They are aware that you know they can see that, and that you're wondering about dropping support on some items as a result.
Of course, there are real costs associated with providing maintenance support, and your support supplier has to make a profit. You are never going to reduce the cost of mission-critical network support to zero. But what else can you do to get the cost down?
Shopping around
The obvious answer to that is to shop around for better prices from other maintenance companies. This is most likely to be fruitful if you are currently using your manufacturer's premium support service. If you are already with a third party maintenance supplier, you are unlikely to make significant savings this way. In fact, you may find that alternative providers actually quote more than your existing supplier, because they need to spare up, and because your existing supplier will want your repeat business enough to be willing to discount their prices to retain it.
There is another avenue to explore, though, which can realise significant savings whether or not you switch suppliers. It may not be surprising to regular readers of this series that it can be illustrated with a parallel from the world of motoring.
Checking the detail
When renewing your car insurance, you probably shop around to see if you're getting the best deal. If the quotes come in at or around the same price, you might dig a little deeper into the detail. I certainly do. I like to make savings where I can, because then I can spend those savings on things rather more exciting and entertaining than car insurance.
I check the policy detail. Where is the car kept overnight? Is it alarmed? How is it used? I even look at the excess payable on each claim. I've had my Range Rover for over eight years and I know I can get most parts at very low cost second hand or from online spares specialists and my local mechanic can fit them at rates well below those demanded by the main dealer. I don't need insurance for that, and if I'm involved in a minor scrape, I'll sort it out myself to avoid pushing my premiums up.
Therefore, when it comes to looking at the excess I'm willing to pay on any claims I actually do make, I push it as high as the insurance company will allow. That drives my premiums down, and because I'm a careful driver and I can afford to sort out any minor scrapes myself, I save significant amounts over the years.
In short, I carefully assess exactly how much cover I need, and make sure I'm not buying cover where it's not necessary.
Don't need it? Don't buy it!
Similar principles apply to networks. Take a look at your telephone and technical support. This is an area in which many businesses have much more wide-ranging cover than they actually need. Of course, for some parts of your network you may well need such support, especially if you aren't always around and your team aren't as technically proficient as you. Indeed, a few years ago, when money was less of an issue than it is today, it was commonplace for telephone support to be included in every hardware support contract.
Finances are rather tighter nowadays, though. I speak on a regular basis with network managers from a wide variety of sectors, and the common story from all at present is that budgets are under pressure, frozen or even cut. They have hardly any room for manoeuvre, and when that unexpected (and unplanned) requirement arises, they find themselves having to go to great lengths to justify the additional expenditure. When the network is down and the phone is ringing off the hook, that's not good.
Cut cost, not value
It makes good sense, then, to evaluate carefully exactly what does, and what does not require telephone support. For much of your network, a simple break-fix contract may be entirely sufficient. Pull together a list of everything that needs hardware cover but doesn't warrant telephone support. Technologies such as routers and switches aren't the rocket science they used to be, and where you don't need telephone support, there's precious little point in buying it. Doing so adds significant cost but no value: move such devices onto straightforward break-fix support.
Take your list to your maintenance supplier and ask for a reduced quote in the light of the reduced telephone support: on some devices the saving could be as much as 50%.
So this month's money-saving tip is this: don't just renew your maintenance contracts each year. Scrutinise them. Check that you're with the supplier who can give you the best deal, make sure they're giving you the best deal, and be ruthless in pulling out of the contract any support that you don't actually need. Remember: if it's old and you're familiar with it, it should cost you less to maintain.
Wednesday, 20 July 2011
Thursday, 16 June 2011
Use original & OEM & 3rd Party
Genuine, OEM or third party?
In these economically challenging times, savings must be made. As costs are driven down, though, risks often rise. Lose control of those risks, and those hard-won savings – and more – could be wiped out.
If you could buy the same piece of memory, for example, through two different channels, one being twice as expensive as the other, which would you choose? Get the choice right, and you could make great cost savings. Get it wrong and not only could you damage your network, but you could also jeopardise the warranty that's in place to protect you against failures. Conventional wisdom says that genuine or OEM (Original Equipment Manufacturer) components are the safe but expensive options, while savings are to be had, at the cost of increased risk, by going for third party products.
Cars again!
In keeping with the tradition we've built up in this series, consider a parallel from the motoring world. When you buy a brand new car, it will come with perhaps as much as a three year warranty. Typically you'll protect yourself against unexpected expensive repairs by having it serviced at the official dealer you bought it from, in line with the warranty contract – all part of generally taking care not to invalidate the warranty.
This extends to any additions you make to the car. While there is a huge range of performance and comfort enhancing upgrades available, the manufacturer will require that you have any work done at an authorised dealer to keep your warranty intact.
Main dealer labour rates being what they are, this will almost certainly not be the cheapest option, of course. However in the good old days of plentiful money supply this was the norm, and independent dealers were left somewhat out in the cold, having to explain to potential customers how money could be saved here and there by using genuine parts sourced through independent channels: as long as proof of the parts' origin was retained breach of warranty terms could be avoided.
Have your cake and eat it
Those days are of course long gone. Today money is tight and the situation has as a result been turned on its head. It's almost as if customers have an even greater desire to save money (safely!) than the independent dealers have to sell to them. And the good news is that you don't need to throw caution to the wind and take wild risks in order to make worthwhile savings. With a little careful research, you can have your cake and eat it.
I've gone through this process with my faithful old Range Rover. I've owned it from new – eight years ago – and I still love it. So, do I take it to the main dealer for service and repairs? Absolutely not! I'm not about to be stung with main dealer prices. Instead, I've done my homework and found a local independent Land Rover specialist. They only work on Land Rovers and Range Rovers, and they don't get involved in vehicle sales, only servicing and repair. All of their customers are, like me, ex-main-dealer customers who have seen the benefits of using a specialised outfit like this, and the cost savings that can be made.
You have a choice
Critically, they have the resources to supply and fit both genuine parts and third party alternatives. I always get quotes for both, and if it's a safety-critical part that's needed, such as brakes, I'll usually go for the genuine item. If it's less critical, I'll probably go for the third party alternative.
Similar choices need to be made by network managers. From the smallest home network to the largest corporate infrastructure, the key is reliability. Life's too short to be sitting idle without access to critical applications or data. Time is, after all, money.
To be able to decide when to go for genuine parts, when to choose OEM and when to go third party, you need to know your network – the age of every component and the nature of the support service it's covered by.
For components still under warranty, there are two alternative options when sourcing spares: OEM or third party. In the case of a very large network there is clear justification in conducting a close examination of all components that could be purchased as OEM, while avoiding invalidating the warranty. OEM gives you peace of mind that the product comes from the same source as that used by the manufacturer, and allows you be fully supported if any product failure issues arise.
It is sheer network size that makes this exercise worth undertaking: on a larger network the savings can be enormous. For smaller networks, with smaller numbers of devices involved, the potential savings are much reduced, making it less worthwhile spending the time involved. In either case, if your network is mission-critical and you want to preserve your warranty then OEM is the way to go. Such products will be manufacturer approved, and, indeed, identical to the manufacturer's genuine article, making sparing up easier.
Chunky savings
I like chunky savings, though, so I always like to explore the third party option: that's where the best savings can be made. Most third party products will not be manufacturer approved, but lack of manufacturer approval has little or no bearing on whether a product will work any better or worse than an approved product. After all, no manufacturer has the time or inclination to approve every third party device that may or may not work with their own.
Do your research, then. Examine non-approved vendor's products. Is the spec the same? Has it been recommended by anyone else? Is it recommended by the supplier as good for use in your device? What warranty does it come with? All of this may well be spot on, even though the third party device hasn’t been officially sanctioned by the manufacturer of the component that you need to upgrade or spare up for.
The key to making savings by specifying OEM or third party devices is comprehensive knowledge. Know your network, know which network segments and components are mission-critical. Know the nature and extent of the warranty on each device. Then research the available OEM and third party alternatives for upgrades and spares. Assess the risks involved to the network and the business and weigh them against the potential savings. Arm yourself with the information you need to make the decision, and then go for it.
In these economically challenging times, savings must be made. As costs are driven down, though, risks often rise. Lose control of those risks, and those hard-won savings – and more – could be wiped out.
If you could buy the same piece of memory, for example, through two different channels, one being twice as expensive as the other, which would you choose? Get the choice right, and you could make great cost savings. Get it wrong and not only could you damage your network, but you could also jeopardise the warranty that's in place to protect you against failures. Conventional wisdom says that genuine or OEM (Original Equipment Manufacturer) components are the safe but expensive options, while savings are to be had, at the cost of increased risk, by going for third party products.
Cars again!
In keeping with the tradition we've built up in this series, consider a parallel from the motoring world. When you buy a brand new car, it will come with perhaps as much as a three year warranty. Typically you'll protect yourself against unexpected expensive repairs by having it serviced at the official dealer you bought it from, in line with the warranty contract – all part of generally taking care not to invalidate the warranty.
This extends to any additions you make to the car. While there is a huge range of performance and comfort enhancing upgrades available, the manufacturer will require that you have any work done at an authorised dealer to keep your warranty intact.
Main dealer labour rates being what they are, this will almost certainly not be the cheapest option, of course. However in the good old days of plentiful money supply this was the norm, and independent dealers were left somewhat out in the cold, having to explain to potential customers how money could be saved here and there by using genuine parts sourced through independent channels: as long as proof of the parts' origin was retained breach of warranty terms could be avoided.
Have your cake and eat it
Those days are of course long gone. Today money is tight and the situation has as a result been turned on its head. It's almost as if customers have an even greater desire to save money (safely!) than the independent dealers have to sell to them. And the good news is that you don't need to throw caution to the wind and take wild risks in order to make worthwhile savings. With a little careful research, you can have your cake and eat it.
I've gone through this process with my faithful old Range Rover. I've owned it from new – eight years ago – and I still love it. So, do I take it to the main dealer for service and repairs? Absolutely not! I'm not about to be stung with main dealer prices. Instead, I've done my homework and found a local independent Land Rover specialist. They only work on Land Rovers and Range Rovers, and they don't get involved in vehicle sales, only servicing and repair. All of their customers are, like me, ex-main-dealer customers who have seen the benefits of using a specialised outfit like this, and the cost savings that can be made.
You have a choice
Critically, they have the resources to supply and fit both genuine parts and third party alternatives. I always get quotes for both, and if it's a safety-critical part that's needed, such as brakes, I'll usually go for the genuine item. If it's less critical, I'll probably go for the third party alternative.
Similar choices need to be made by network managers. From the smallest home network to the largest corporate infrastructure, the key is reliability. Life's too short to be sitting idle without access to critical applications or data. Time is, after all, money.
To be able to decide when to go for genuine parts, when to choose OEM and when to go third party, you need to know your network – the age of every component and the nature of the support service it's covered by.
For components still under warranty, there are two alternative options when sourcing spares: OEM or third party. In the case of a very large network there is clear justification in conducting a close examination of all components that could be purchased as OEM, while avoiding invalidating the warranty. OEM gives you peace of mind that the product comes from the same source as that used by the manufacturer, and allows you be fully supported if any product failure issues arise.
It is sheer network size that makes this exercise worth undertaking: on a larger network the savings can be enormous. For smaller networks, with smaller numbers of devices involved, the potential savings are much reduced, making it less worthwhile spending the time involved. In either case, if your network is mission-critical and you want to preserve your warranty then OEM is the way to go. Such products will be manufacturer approved, and, indeed, identical to the manufacturer's genuine article, making sparing up easier.
Chunky savings
I like chunky savings, though, so I always like to explore the third party option: that's where the best savings can be made. Most third party products will not be manufacturer approved, but lack of manufacturer approval has little or no bearing on whether a product will work any better or worse than an approved product. After all, no manufacturer has the time or inclination to approve every third party device that may or may not work with their own.
Do your research, then. Examine non-approved vendor's products. Is the spec the same? Has it been recommended by anyone else? Is it recommended by the supplier as good for use in your device? What warranty does it come with? All of this may well be spot on, even though the third party device hasn’t been officially sanctioned by the manufacturer of the component that you need to upgrade or spare up for.
The key to making savings by specifying OEM or third party devices is comprehensive knowledge. Know your network, know which network segments and components are mission-critical. Know the nature and extent of the warranty on each device. Then research the available OEM and third party alternatives for upgrades and spares. Assess the risks involved to the network and the business and weigh them against the potential savings. Arm yourself with the information you need to make the decision, and then go for it.
Wednesday, 25 May 2011
Opt for sparing on less critical areas
Maintenance costs driving you spare?
Your IT network infrastructure needs maintenance support. It is your business' central nervous system: without it, you would almost certainly be hard pressed to stay afloat for long. But it is a conglomeration of technology, and technology – even the very best technology – is subject to failure.
Nothing new so far. Indeed, I've said as much a number of times in this series of articles.
Here's the critical question, though: "How can you keep the risk of device failure at an acceptable level, without burning huge amounts of cash in the process?"
You could conclude that your entire infrastructure should be covered by a support contract. After all your business relies utterly on it – it is, by almost any definition, mission critical. That would address the risk reduction requirement, of course, but it wouldn't be cheap.
As always, there is a better way.
A little mental retail therapy
Think back to the last time you went shopping for one of the many pieces of electronic wizardry that we all fill our homes with. The latest plasma TV or game console, perhaps. At the checkout you're sure to have been offered an extended guarantee. When buying cutting-edge technology with as yet no track record in the market, I almost always go for such extended guarantees. After all, brand new technology is new not only to me, but, in terms of its performance in the mass market, it is new even to its manufacturer. The extended guarantee may be costly, but it provides a good level of protection against unknown risks.
Now leap forward a couple of years to the day the extended guarantee renewal notice lands on your doormat. At this point, I usually take a completely different view. I've seen the product in action, I've read the reviews and I've chewed the fat with friends who also have it. I know it's reliable, and with the benefit of hindsight the renewal premium looks rather expensive for what it will give me. The long and the short of it is that since the product has been working well throughout years one and two, there's every reason expect it to continue to do so in years three and four. I say "No thanks" to the invitation to renew.
Is the cover warranted?
There's a principle here that transplants well into the world of your IT network. While it makes excellent sense to have appropriate support contracts covering more recently purchased devices and those which are core to the functioning of your network, significant savings can be made by identifying those areas of your network that don't warrant such cover, and protecting them with spares instead.
Take a long, hard, critical look at your support contracts. You're paying, of course, not for the repair cost of each device, or even a percentage of it, but, effectively, for an insurance contract. You are buying protection against remedial expense and costly downtime in the event of a failure. It's your support provider's job to provide that protection, of course, and it's not something which can be done on the cheap. Each supported device must be surrounded with sufficient spares and skilled personnel to ensure that service can be delivered in line with the standards set in the contract. All that costs money, which of course is reflected in the price you pay for the support.
Mission critical, and not so critical
Now, if you have to have that support, then you have to have it. But – and it's a big 'but' – while your network as a whole is mission critical, it's almost certainly not the case that the whole of your network is mission critical. Naturally, your support provider isn't going to draw this to your attention – supporting those non mission critical parts of your network is usually, not to put too fine a point on it, money for old rope. Your support provider will be very happy to have the extra, low-hassle profit it brings their way. To take the initiative and put yourself ahead of the game, you need to do some auditing, before that renewal notice lands on your desk.
Before you are next due to renegotiate support contracts, take some time out to identify which parts of your network could be supported in house with appropriate spares. Of course, doing this may mean taking on additional staff – reckon all the various costs in and compare them to the cost of including those parts of your network in a support contract. It boils down to arithmetic. Have your accountants crunch the numbers so you can see clearly the relative costs involved. Once you can see that, and you know where in your network the dividing line between mission critical and non mission critical lies, you'll be able to decide what should be included in a support contract, and what you can support by sparing up.
And remember, the time to do that preparatory work is now – before the pressure is on at support contract renewal time. Arm yourself with a cuppa and get auditing!
Your IT network infrastructure needs maintenance support. It is your business' central nervous system: without it, you would almost certainly be hard pressed to stay afloat for long. But it is a conglomeration of technology, and technology – even the very best technology – is subject to failure.
Nothing new so far. Indeed, I've said as much a number of times in this series of articles.
Here's the critical question, though: "How can you keep the risk of device failure at an acceptable level, without burning huge amounts of cash in the process?"
You could conclude that your entire infrastructure should be covered by a support contract. After all your business relies utterly on it – it is, by almost any definition, mission critical. That would address the risk reduction requirement, of course, but it wouldn't be cheap.
As always, there is a better way.
A little mental retail therapy
Think back to the last time you went shopping for one of the many pieces of electronic wizardry that we all fill our homes with. The latest plasma TV or game console, perhaps. At the checkout you're sure to have been offered an extended guarantee. When buying cutting-edge technology with as yet no track record in the market, I almost always go for such extended guarantees. After all, brand new technology is new not only to me, but, in terms of its performance in the mass market, it is new even to its manufacturer. The extended guarantee may be costly, but it provides a good level of protection against unknown risks.
Now leap forward a couple of years to the day the extended guarantee renewal notice lands on your doormat. At this point, I usually take a completely different view. I've seen the product in action, I've read the reviews and I've chewed the fat with friends who also have it. I know it's reliable, and with the benefit of hindsight the renewal premium looks rather expensive for what it will give me. The long and the short of it is that since the product has been working well throughout years one and two, there's every reason expect it to continue to do so in years three and four. I say "No thanks" to the invitation to renew.
Is the cover warranted?
There's a principle here that transplants well into the world of your IT network. While it makes excellent sense to have appropriate support contracts covering more recently purchased devices and those which are core to the functioning of your network, significant savings can be made by identifying those areas of your network that don't warrant such cover, and protecting them with spares instead.
Take a long, hard, critical look at your support contracts. You're paying, of course, not for the repair cost of each device, or even a percentage of it, but, effectively, for an insurance contract. You are buying protection against remedial expense and costly downtime in the event of a failure. It's your support provider's job to provide that protection, of course, and it's not something which can be done on the cheap. Each supported device must be surrounded with sufficient spares and skilled personnel to ensure that service can be delivered in line with the standards set in the contract. All that costs money, which of course is reflected in the price you pay for the support.
Mission critical, and not so critical
Now, if you have to have that support, then you have to have it. But – and it's a big 'but' – while your network as a whole is mission critical, it's almost certainly not the case that the whole of your network is mission critical. Naturally, your support provider isn't going to draw this to your attention – supporting those non mission critical parts of your network is usually, not to put too fine a point on it, money for old rope. Your support provider will be very happy to have the extra, low-hassle profit it brings their way. To take the initiative and put yourself ahead of the game, you need to do some auditing, before that renewal notice lands on your desk.
Before you are next due to renegotiate support contracts, take some time out to identify which parts of your network could be supported in house with appropriate spares. Of course, doing this may mean taking on additional staff – reckon all the various costs in and compare them to the cost of including those parts of your network in a support contract. It boils down to arithmetic. Have your accountants crunch the numbers so you can see clearly the relative costs involved. Once you can see that, and you know where in your network the dividing line between mission critical and non mission critical lies, you'll be able to decide what should be included in a support contract, and what you can support by sparing up.
And remember, the time to do that preparatory work is now – before the pressure is on at support contract renewal time. Arm yourself with a cuppa and get auditing!
Sunday, 24 April 2011
Rent to Buy
Try before you buyHave you ever gone out and made one of those big purchases – the sort that you plan for ages and really look forward to – only to get your new toy home and find that, really, it's a bit of a disappointment? Go on, be honest with yourself. We've all been there.
Often, there's little you could have done to avoid such a situation. Such disappointments are often not due to a lack of pre-purchase research and product comparison, but only make themselves felt once you start actually using the product.
Take a test drive
Most of us are familiar with addressing this problem when buying cars. Few of us, after all, would buy a car without first taking it on a test drive. Of course, before doing that you'd decide on the make, model and features you're after, and check out the cost. You might have to drop this feature or that in order to keep the cost within your means – you might even have to change to a different model – but you wouldn't place an order until you'd test driven the car you'd settled on. You'd want to know what it's actually like to drive. After all, that's what it's for. Driving.
Having made your decision, you might decide not to buy the new car outright, but to pay for it over a period of time, maybe three or four years. For business use, you might decide not to buy it at all, but to lease it. These approaches, while usually more expensive than outright purchase in the long term, offer great benefits in both cash flow and flexibility terms.
Rent it!
Network equipment can be acquired in similar ways: outright purchase, staged payments or by renting it.
Renting can offer significant benefits – it can be a highly convenient, flexible and economical way of acquiring the kit you need. Even if you decide to purchase the equipment outright or via staged payments, it can be most useful to rent it first in order to perform longer-term in-situ testing. Such testing can give you a much higher degree of confidence that the new equipment will do what you need it to do when installed in your network, in turn increasing the chances of a successful purchase, and keeping everyone happy – including your finance department and boss!
Renting means savings
The principal goal of this series of networking tips is to help you save money – to control capital expenditure. That goal is even more important now than it was a couple of years ago when we started this series. With the economic climate as it is, capital budgets are under much increased pressure.
Renting removes the need for major capital expenditure on network kit. Instead, it is funded via a series of regular rental payments. These are typically orders of magnitude smaller than the outright purchase would have been.
Tax savings
Perhaps the biggest financial benefit of renting is in the the tax savings it realises. Outright purchases must be accounted for through capital allowances, while rental fees can be charged directly against revenues for corporation tax purposes. Significant savings in tax can be achieved, as well as removing the need for major capital expenditure.
There is another, less immediately obvious, way in which renting can save you money, though – less obvious because it has to do with the end of the device's useful life on your network. Obsolete products are typically more difficult to dispose of. If you need to source a product which is near, at or beyond its end-of-life, then consider either purchasing it refurbished, or renting it. By renting, you can remove the risk of finding yourself at a later date left with an obsolete product that you can't resell.
At Go Communications many of our customers are regularly mixing outright purchasing with renting to help them address the new financial constraints that they must work within the current economic climate.
Minimise your exposure to financial and other risks. Take your new network kit for an extended test drive by renting rather than purchasing outright. If it doesn't work out, you'll have minimised or completely avoided any egg-on-face. And if it does do what you hoped, then you'll find yourself everyone's new best friend – your customers, your boss and perhaps even the bank manager!
Often, there's little you could have done to avoid such a situation. Such disappointments are often not due to a lack of pre-purchase research and product comparison, but only make themselves felt once you start actually using the product.
Take a test drive
Most of us are familiar with addressing this problem when buying cars. Few of us, after all, would buy a car without first taking it on a test drive. Of course, before doing that you'd decide on the make, model and features you're after, and check out the cost. You might have to drop this feature or that in order to keep the cost within your means – you might even have to change to a different model – but you wouldn't place an order until you'd test driven the car you'd settled on. You'd want to know what it's actually like to drive. After all, that's what it's for. Driving.
Having made your decision, you might decide not to buy the new car outright, but to pay for it over a period of time, maybe three or four years. For business use, you might decide not to buy it at all, but to lease it. These approaches, while usually more expensive than outright purchase in the long term, offer great benefits in both cash flow and flexibility terms.
Rent it!
Network equipment can be acquired in similar ways: outright purchase, staged payments or by renting it.
Renting can offer significant benefits – it can be a highly convenient, flexible and economical way of acquiring the kit you need. Even if you decide to purchase the equipment outright or via staged payments, it can be most useful to rent it first in order to perform longer-term in-situ testing. Such testing can give you a much higher degree of confidence that the new equipment will do what you need it to do when installed in your network, in turn increasing the chances of a successful purchase, and keeping everyone happy – including your finance department and boss!
Renting means savings
The principal goal of this series of networking tips is to help you save money – to control capital expenditure. That goal is even more important now than it was a couple of years ago when we started this series. With the economic climate as it is, capital budgets are under much increased pressure.
Renting removes the need for major capital expenditure on network kit. Instead, it is funded via a series of regular rental payments. These are typically orders of magnitude smaller than the outright purchase would have been.
Tax savings
Perhaps the biggest financial benefit of renting is in the the tax savings it realises. Outright purchases must be accounted for through capital allowances, while rental fees can be charged directly against revenues for corporation tax purposes. Significant savings in tax can be achieved, as well as removing the need for major capital expenditure.
There is another, less immediately obvious, way in which renting can save you money, though – less obvious because it has to do with the end of the device's useful life on your network. Obsolete products are typically more difficult to dispose of. If you need to source a product which is near, at or beyond its end-of-life, then consider either purchasing it refurbished, or renting it. By renting, you can remove the risk of finding yourself at a later date left with an obsolete product that you can't resell.
At Go Communications many of our customers are regularly mixing outright purchasing with renting to help them address the new financial constraints that they must work within the current economic climate.
Minimise your exposure to financial and other risks. Take your new network kit for an extended test drive by renting rather than purchasing outright. If it doesn't work out, you'll have minimised or completely avoided any egg-on-face. And if it does do what you hoped, then you'll find yourself everyone's new best friend – your customers, your boss and perhaps even the bank manager!
Thursday, 24 March 2011
Use Serial Number Tracking
Protect yourself with serial number tracking
What factors do you consider when selecting a network devices supplier? Price? Product availability? Quality control? Good reports from existing customers? Those are all excellent criteria. There is another issue to check out, though, and while it isn't as immediately obvious as others, it is fundamentally important.
It is this: choose a dealer with robust, reliable and comprehensive serial number tracking technology in place. I cannot over-stress the importance of this. Only by tracking components at the serial number level can devices be identified precisely and thereby be dealt with appropriately. Product and part numbers simply aren't good enough.
How's your insurance?
To illustrate this point, consider what happens if your home or business premises are damaged by fire or flood. In such a situation, you make a claim on your insurance company for lost or damaged items. That's the point at which you discover whether or not you are under-insured. If you are, then you're going to come out of the episode with less than you had before, rather defeating the purpose of having insurance in the first place, which is, of course, to protect you from loss.
With the benefit of hindsight, therefore, you might decide to make sure you're adequately covered by listing everything you own, noting the value of each individual item. It you're anything like me, always shopping around for the best deal and therefore getting more for your money, you could well be surprised at just how long the list turns out to be, as well its total value.
Armed with this list, you'll be in a position to make sure that your insurance gives you adequate cover. Now, when disaster strikes, you won't be left short, on top of all the other inconvenience that such crises always involve.
Get a tracker
Good network specialists display the same obsession with detail when it comes to tracking the devices they supply. Rigorously tracking serial numbers enables them to provide swifter and more effective support: they know exactly what they are dealing with, right down to the detail of software versions and installed options.
They will also know immediately if they receive as a return from a customer a device that they didn't originally supply. That means they don't have to absorb the cost involved in such situations – cost which must, inevitably, be passed on to their customer base. Additionally, if they can track devices by serial number then they will be able to maintain a record of test logs for each device, further improving their ability to provide swift and effective service.
All network specialists have equipment spread out over a number of sites – their own and their customers. When devices fail, as of course they do from time to time, a supplier's ability to respond effectively depends heavily on how comprehensive and accurate their picture of the failed device is. In short, using a supplier with no serial number tracking is likely to mean longer periods of network downtime.
With comprehensive information and serial number tracking your supplier can maintain accurate records on order and delivery dates, warranty windows with both their suppliers and you, as well as a host of technical information on each device they have supplied to you. With all that information at their fingertips, they are in a position to make very swift decisions as to the best approach to solving any problems that may arise. That's good for you, because you suffer less downtime and enjoy a more productive network. And it's good for them, because happy customers tend to come back for more, and to recommend their suppliers to others.
Do it yourself
The same principle should be applied to your network: make sure you always know exactly what is installed on it, and its value, by tracking all network component not only by part or model number, but also by serial number.
Serial numbers are the key not only to swift diagnosis and remedial action when it comes to failed components, but also to knowing the true value of your network devices. Any given device model may be available over its lifetime in dozens of different variants. Assorted options and enhancements, as well as different hardware and software revisions can mean huge differences in value, whether you are considering replacing devices after loss or damage or selling them on as second user equipment.
Go Communications' business is entirely focused on second-user Cisco Systems devices, so it's no surprise that we are frequently approached by companies that have devices to dispose of. Sadly, in most cases all that the prospective vendor can give us is a list of part numbers. With the serial numbers, we would in many cases be able to make a better offer, and of course the potential vendor would be in a position to negotiate more effectively with any prospective buyer.
Protect yourself from future shocks and get the best price for your retired network kit. Track network devices by serial number, and make sure your dealer does the same.
What factors do you consider when selecting a network devices supplier? Price? Product availability? Quality control? Good reports from existing customers? Those are all excellent criteria. There is another issue to check out, though, and while it isn't as immediately obvious as others, it is fundamentally important.
It is this: choose a dealer with robust, reliable and comprehensive serial number tracking technology in place. I cannot over-stress the importance of this. Only by tracking components at the serial number level can devices be identified precisely and thereby be dealt with appropriately. Product and part numbers simply aren't good enough.
How's your insurance?
To illustrate this point, consider what happens if your home or business premises are damaged by fire or flood. In such a situation, you make a claim on your insurance company for lost or damaged items. That's the point at which you discover whether or not you are under-insured. If you are, then you're going to come out of the episode with less than you had before, rather defeating the purpose of having insurance in the first place, which is, of course, to protect you from loss.
With the benefit of hindsight, therefore, you might decide to make sure you're adequately covered by listing everything you own, noting the value of each individual item. It you're anything like me, always shopping around for the best deal and therefore getting more for your money, you could well be surprised at just how long the list turns out to be, as well its total value.
Armed with this list, you'll be in a position to make sure that your insurance gives you adequate cover. Now, when disaster strikes, you won't be left short, on top of all the other inconvenience that such crises always involve.
Get a tracker
Good network specialists display the same obsession with detail when it comes to tracking the devices they supply. Rigorously tracking serial numbers enables them to provide swifter and more effective support: they know exactly what they are dealing with, right down to the detail of software versions and installed options.
They will also know immediately if they receive as a return from a customer a device that they didn't originally supply. That means they don't have to absorb the cost involved in such situations – cost which must, inevitably, be passed on to their customer base. Additionally, if they can track devices by serial number then they will be able to maintain a record of test logs for each device, further improving their ability to provide swift and effective service.
All network specialists have equipment spread out over a number of sites – their own and their customers. When devices fail, as of course they do from time to time, a supplier's ability to respond effectively depends heavily on how comprehensive and accurate their picture of the failed device is. In short, using a supplier with no serial number tracking is likely to mean longer periods of network downtime.
With comprehensive information and serial number tracking your supplier can maintain accurate records on order and delivery dates, warranty windows with both their suppliers and you, as well as a host of technical information on each device they have supplied to you. With all that information at their fingertips, they are in a position to make very swift decisions as to the best approach to solving any problems that may arise. That's good for you, because you suffer less downtime and enjoy a more productive network. And it's good for them, because happy customers tend to come back for more, and to recommend their suppliers to others.
Do it yourself
The same principle should be applied to your network: make sure you always know exactly what is installed on it, and its value, by tracking all network component not only by part or model number, but also by serial number.
Serial numbers are the key not only to swift diagnosis and remedial action when it comes to failed components, but also to knowing the true value of your network devices. Any given device model may be available over its lifetime in dozens of different variants. Assorted options and enhancements, as well as different hardware and software revisions can mean huge differences in value, whether you are considering replacing devices after loss or damage or selling them on as second user equipment.
Go Communications' business is entirely focused on second-user Cisco Systems devices, so it's no surprise that we are frequently approached by companies that have devices to dispose of. Sadly, in most cases all that the prospective vendor can give us is a list of part numbers. With the serial numbers, we would in many cases be able to make a better offer, and of course the potential vendor would be in a position to negotiate more effectively with any prospective buyer.
Protect yourself from future shocks and get the best price for your retired network kit. Track network devices by serial number, and make sure your dealer does the same.
Monday, 21 February 2011
Exploit manufacturers trade-ins
Don't chuck it, trade it in
If you've been following this series of money-saving tips you'll know that I'm a big fan of redeploying and reusing network devices that are no longer suitable for front line work. Even I have to admit, however, that there will come a point at which you'll have no further use for various pieces of kit.
Don't throw those old devices out yet, though. They could still be worth a lot to you.
Any manufacturer's default position will be to sell you the best, most profitable solution for your needs, from stock, at list price – end of story. Most manufacturers have a trade in programme, however (although their sales team may not mention it if you don't raise the issue) and it's possible to make huge savings. So, while your specifying kit and negotiating prices, take an inventory of your pensioned-off devices and explore trade in options.
Out with the old, in with the new
Let me take you once again on a trip to the car showroom. Generally, when buying a new car, you have the associated challenge of disposing of the old one. There are two approaches you might take: sell it privately, or trade it in for the new one.
Usually, most car dealers will much prefer you buy your car outright, without any trade in. Disposing of your old vehicle, unless they happen to have a buyer waiting for it, means extra work for them and extra expense. They're quite happy for you to take on that work and expense.
Some car dealers, though, have recognised the fact that you and I really don't want to be spending our leisure time trying to sell our old cars, and have made the trade in offer a standard part of their service. As a result they can offer you a good trade in value on your old car, saving you a significant amount on your new purchase and freeing you of the need to sell your old car yourself. Excellent!
Don't miss the trade in opportunityThere is, of course, a parallel with your network here. I'm frequently approached by companies looking to dispose of their old network equipment. While I'm happy to make an offer for such kit, I always wonder why they didn't look into the possibility of a trade in. Were they unaware that it is an option to explore? Did they think they had as good a price as they could get on their new network equipment? Whatever the reason, had they secured a trade in, they could have ended up saving thousands.
A very attractive characteristic of trade ins is that everything is negotiable. There are, for example, no 'golden rules' stating that all traded-in kit must be under six months old, or must be returned within 14 days. You can negotiate a trade in deal that not only saves you significant amounts on your purchase, but also suits you in terms of logistics. That could be invaluable in the situation where you need to trial run your new kit alongside the devices it will be replacing, before pulling out those old devices.
Trading in is always an optionManufacturers know that the more savvy the customer, the more likely they are to be tempted away to an alternative supplier. And if you should move to a new supplier, they know that in this industry, you could be with them for three to five years. That's a long time, and a lot of lost business – and that's before they even think about the work they'll have to do to win you back.
Because of that, while they may not mention trade ins as an option at the outset, or even at all – the manufacturer's preferred result is a straightforward sale of new kit, without the complications of a trade in, after all – you can be confident that the option is there.
Finally, if your manufacturer makes you a derisory offer for your trade in kit, give us a call at Go Communications. We'll happily quote you for the kit, and while we can't, of course, guarantee that we'll be able to make a better offer than your manufacturer, there's a very good chance that we will. Refurbished network devices are our core business, after all.
Whichever approach you take, don't write off your old kit. It could be worth thousands off the cost of your next network upgrade. That's the power of the trade in.
If you've been following this series of money-saving tips you'll know that I'm a big fan of redeploying and reusing network devices that are no longer suitable for front line work. Even I have to admit, however, that there will come a point at which you'll have no further use for various pieces of kit.
Don't throw those old devices out yet, though. They could still be worth a lot to you.
Any manufacturer's default position will be to sell you the best, most profitable solution for your needs, from stock, at list price – end of story. Most manufacturers have a trade in programme, however (although their sales team may not mention it if you don't raise the issue) and it's possible to make huge savings. So, while your specifying kit and negotiating prices, take an inventory of your pensioned-off devices and explore trade in options.
Out with the old, in with the new
Let me take you once again on a trip to the car showroom. Generally, when buying a new car, you have the associated challenge of disposing of the old one. There are two approaches you might take: sell it privately, or trade it in for the new one.
Usually, most car dealers will much prefer you buy your car outright, without any trade in. Disposing of your old vehicle, unless they happen to have a buyer waiting for it, means extra work for them and extra expense. They're quite happy for you to take on that work and expense.
Some car dealers, though, have recognised the fact that you and I really don't want to be spending our leisure time trying to sell our old cars, and have made the trade in offer a standard part of their service. As a result they can offer you a good trade in value on your old car, saving you a significant amount on your new purchase and freeing you of the need to sell your old car yourself. Excellent!
Don't miss the trade in opportunityThere is, of course, a parallel with your network here. I'm frequently approached by companies looking to dispose of their old network equipment. While I'm happy to make an offer for such kit, I always wonder why they didn't look into the possibility of a trade in. Were they unaware that it is an option to explore? Did they think they had as good a price as they could get on their new network equipment? Whatever the reason, had they secured a trade in, they could have ended up saving thousands.
A very attractive characteristic of trade ins is that everything is negotiable. There are, for example, no 'golden rules' stating that all traded-in kit must be under six months old, or must be returned within 14 days. You can negotiate a trade in deal that not only saves you significant amounts on your purchase, but also suits you in terms of logistics. That could be invaluable in the situation where you need to trial run your new kit alongside the devices it will be replacing, before pulling out those old devices.
Trading in is always an optionManufacturers know that the more savvy the customer, the more likely they are to be tempted away to an alternative supplier. And if you should move to a new supplier, they know that in this industry, you could be with them for three to five years. That's a long time, and a lot of lost business – and that's before they even think about the work they'll have to do to win you back.
Because of that, while they may not mention trade ins as an option at the outset, or even at all – the manufacturer's preferred result is a straightforward sale of new kit, without the complications of a trade in, after all – you can be confident that the option is there.
Finally, if your manufacturer makes you a derisory offer for your trade in kit, give us a call at Go Communications. We'll happily quote you for the kit, and while we can't, of course, guarantee that we'll be able to make a better offer than your manufacturer, there's a very good chance that we will. Refurbished network devices are our core business, after all.
Whichever approach you take, don't write off your old kit. It could be worth thousands off the cost of your next network upgrade. That's the power of the trade in.
Sunday, 23 January 2011
Plan ahead
Know what's coming – and plan accordinglyWhat will your network look like in ten years' time? 100 Gig to the desktop, with a 10 Terabyte backbone? Hi-def video apps for every user?
If that sounds like a pipe dream, it's worth noting that right now the clever money says that over the next few years, 90% – yes, ninety percent – of Internet traffic will be accounted for by video. That's a huge figure and can only mean one thing: a huge upsurge in overall traffic volumes.
Hi-def the way forwardI'm a big movie and sports fan, and I already frequently check out the TV guide to see if the big game or blockbuster is being shown in HD. I take the view that good movies and great games are to be savoured, and the only way to watch them is in HD. I'll even avoid watching a classic in standard definition – I'd rather wait until it's broadcast in HD, so I can enjoy it to the full. That probably gives you some idea of how I view HD. I think it's brilliant and I'm convinced it's the only way to watch. I'm absolutely certain it's where all broadcasting and video, online and offline, is headed.
I'm far from the only one who takes that view. There's a growing army of people who love HD, and those people will drive explosive growth in Internet and LAN traffic. It's not a question of if, but of when.
Exciting times aheadClearly, traffic growth of this magnitude must be planned for: failure to plan here will very much be a matter of planning to fail. The traffic will be there. The question is whether your network infrastructure will be up the task of handling it. I can't see anything else, with the possible exception of cloud-enabled technologies, coming close to HD in terms of its impact on network traffic.
SD video has of course already had an impact on traffic. A colleague working in the IP carrier sector told me that September 2008 saw an exponential growth in Internet traffic – growth that he put down to explosive growth in the use of video sites. Requiring around ten times the connection speed that most home users currently enjoy, HD's effect on network traffic will make the impact of SD video seem like a minor blip. It's going to mean major re-engineering of Internet and LAN infrastructures across the globe. Exciting times are ahead for anyone working in the networking field.
Protect your core network
How should all this crystal ball gazing affect network managers right now, though? Firstly, it's important to be clear, especially in the current highly cost-conscious environment, where cost cutting should and should not take place. For almost all businesses, network infrastructure is an absolute essential and should as far as possible be considered sacrosanct. A robust and highly-performing network infrastructure is vital today, and with the increasing adoption of technologies such as HD video, will become all the more so in the future. Your baseline position should therefore be always to protect your core network.
Modern businesses are so reliant on their IT networks that it's probably fair to say that many, maybe even most of those businesses who fail to invest sufficiently and appropriately in their network infrastructure will fall by the wayside as HD video makes its presence felt. It will be companies who have cutting-edge communications technologies like HD video in mind right now, and who plan effectively for their take-up in the immediate future, which will prosper and succeed.
Keep the future in viewYou may not be able to afford to upgrade your network to support HD today, or next year or even the year after that, but you do need to recognise that over the next five to ten years you will need to do so. You need to be looking not just a year or two ahead, but a generation ahead: any decisions you make today could have significant implications for your network and finances in the coming years. Whatever you specify for your network, you should have in mind not only its immediate use but also the ways in which it could be redeployed in the future.
In line with my earlier tip on the general reuse of network equipment, the approach to take is to start moving towards a video-friendly infrastructure now, so that when the heavy HD traffic starts to hit in a few years' time, you'll be able to migrate the devices you specify today out to the periphery of your network, replacing them with current products in the core and giving you a bang up-to-date HD-capable network.
It may not be state-of-the-art in the sense that cash-rich corporate giants' networks are state-of-the-art, but it won't be far behind, and you will have achieved it at far lower cost. It will put you in a great position to take advantage of all the benefits that HD video will offer, giving you competitive advantage in the market, and, ultimately, boosting your business' bottom line.
All because you planned ahead.
If that sounds like a pipe dream, it's worth noting that right now the clever money says that over the next few years, 90% – yes, ninety percent – of Internet traffic will be accounted for by video. That's a huge figure and can only mean one thing: a huge upsurge in overall traffic volumes.
Hi-def the way forwardI'm a big movie and sports fan, and I already frequently check out the TV guide to see if the big game or blockbuster is being shown in HD. I take the view that good movies and great games are to be savoured, and the only way to watch them is in HD. I'll even avoid watching a classic in standard definition – I'd rather wait until it's broadcast in HD, so I can enjoy it to the full. That probably gives you some idea of how I view HD. I think it's brilliant and I'm convinced it's the only way to watch. I'm absolutely certain it's where all broadcasting and video, online and offline, is headed.
I'm far from the only one who takes that view. There's a growing army of people who love HD, and those people will drive explosive growth in Internet and LAN traffic. It's not a question of if, but of when.
Exciting times aheadClearly, traffic growth of this magnitude must be planned for: failure to plan here will very much be a matter of planning to fail. The traffic will be there. The question is whether your network infrastructure will be up the task of handling it. I can't see anything else, with the possible exception of cloud-enabled technologies, coming close to HD in terms of its impact on network traffic.
SD video has of course already had an impact on traffic. A colleague working in the IP carrier sector told me that September 2008 saw an exponential growth in Internet traffic – growth that he put down to explosive growth in the use of video sites. Requiring around ten times the connection speed that most home users currently enjoy, HD's effect on network traffic will make the impact of SD video seem like a minor blip. It's going to mean major re-engineering of Internet and LAN infrastructures across the globe. Exciting times are ahead for anyone working in the networking field.
Protect your core network
How should all this crystal ball gazing affect network managers right now, though? Firstly, it's important to be clear, especially in the current highly cost-conscious environment, where cost cutting should and should not take place. For almost all businesses, network infrastructure is an absolute essential and should as far as possible be considered sacrosanct. A robust and highly-performing network infrastructure is vital today, and with the increasing adoption of technologies such as HD video, will become all the more so in the future. Your baseline position should therefore be always to protect your core network.
Modern businesses are so reliant on their IT networks that it's probably fair to say that many, maybe even most of those businesses who fail to invest sufficiently and appropriately in their network infrastructure will fall by the wayside as HD video makes its presence felt. It will be companies who have cutting-edge communications technologies like HD video in mind right now, and who plan effectively for their take-up in the immediate future, which will prosper and succeed.
Keep the future in viewYou may not be able to afford to upgrade your network to support HD today, or next year or even the year after that, but you do need to recognise that over the next five to ten years you will need to do so. You need to be looking not just a year or two ahead, but a generation ahead: any decisions you make today could have significant implications for your network and finances in the coming years. Whatever you specify for your network, you should have in mind not only its immediate use but also the ways in which it could be redeployed in the future.
In line with my earlier tip on the general reuse of network equipment, the approach to take is to start moving towards a video-friendly infrastructure now, so that when the heavy HD traffic starts to hit in a few years' time, you'll be able to migrate the devices you specify today out to the periphery of your network, replacing them with current products in the core and giving you a bang up-to-date HD-capable network.
It may not be state-of-the-art in the sense that cash-rich corporate giants' networks are state-of-the-art, but it won't be far behind, and you will have achieved it at far lower cost. It will put you in a great position to take advantage of all the benefits that HD video will offer, giving you competitive advantage in the market, and, ultimately, boosting your business' bottom line.
All because you planned ahead.
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