How hardware maintenance plans save you money
By now, it is pretty much accepted that the hardware and software costs of a server are only about 15 to 25 percent of the server’s total cost.
Hardware is cheap. They are low-cost commodity items and, in many cases, the software running on them is free (free as in speech, not as in beer).
So, if the hardware costs are negligible why are we spending more money on maintenance plans? Why not replace them with better, cheaper hardware at regular intervals when the manufacturer’s warranty expires? Because, again, the
hardware costs are almost always noise and discretionary in terms of budgeting.
The Experienced View
Many reasons exist as to why you should keep your existing hardware inservice as long as possible, but essentially it comes down to two main reasons:
1. The Network Effect
2. The People