Get the Most from Your Next Upgrade
Despite the spectra of political and economic uncertainty, a recent study by Spiceworks shows that 44% of businesses plan to increase their IT budgets in 2020, with hardware continuing to get the highest budget allocation. One of the driving forces for the spending growth, according to the survey of 1,005 technology buyers from organizations across North America and Europe, is the need for infrastructure upgrades.
Expenses related to ongoing maintenance and optimization of your current IT environment can be skyrocketing both in terms of average dollars spend and as a percentage of the company's total IT budget. However, there is a way to reduce the overall costs of keeping your system up and running, and the answer to this is 'refurbished'.
In this blog post, we will walk you through why going refurbished can be the perfect solution for your next hardware upgrade.
High Value, Low Costs
The reseller market for used and refurbished hardware has evolved considerable in recent years, with demands for top-quality servers, storage and networking equipment high from organizations, both large and small, across various industries and sectors such as finance, healthcare and ecommerce.
But why is refurbished hardware gaining so much popularity? Well, first, the general perception of the word 'refurbished' is changing. Instead of thinking of refurbished as tatty and useless junk, consumers now realize the true value of refurbished products in terms of performance, reliability, quality and security.
Another factor that drives the refurbished hardware market growth is the fact that consumers are keen to reduce upfront costs and operating expenses. Although the average IT spending is inching upward for 2020, there are still business leaders, typically in smaller organizations, dealing with dwindling IT budgets.
Many IT professionals and departments are struggling to keep pace with today's data explosion and are stuck trying to figure out how to maintain operational efficiency with less.
With refurbished equipment, you will get an affordable and cost-effective alternative that allows you to stretch your budget and achieve bottom-line oriented goals without compromising on quality. Sounds like a dream for any CEO, right?
Minimized Downtime
For businesses, the cost of IT downtime—whether it is planned or unplanned—can go far beyond a mere frustration; it can negatively affect productivity and the bottom line. In 2017, British Airways suffered a major IT system failure over the May bank holiday. The meltdown forced the airline to cancel almost all flights which affected thousands of passengers around the world. The financial costs? Nearly £80 million.
This is a scary example of how big the consequences can be when IT systems crash. Of course, unplanned downtime caused by unexpected events like hardware failure, power outages or human error is exponentially more costly than planned downtime. However, the downtime for scheduled maintenance activities such as system upgrades or migrations can still be an expense and inconvenience for businesses.
To help companies maximize uptime when upgrading an existing environment, or if an unforeseen failure occurs, most hardware resellers offer a comprehensive range of end-of-life and hard-to-find parts with short lead times and fast shipments available worldwide.
It Pays to be Green
According to a report by the Platform for Accelerating the Circular Economy (PACE) and the UN E-Waste Coalition, the world produces as much as 50 million tons of electronic and electrical waste a year. Only 20% is formally recycled, with 80% ending up in landfills around the world. As these enormous amounts of e-waste breaks down, they release toxic heavy metals which contaminate the air, soil and groundwater, causing huge impacts on ecosystems and human well-being.
In the face of these crucial health and environmental issues, many businesses are now taking a more green and ecological approach by optimizing and extending the functional life of their existing technology with refurbished equipment—whether it is replacement parts, configurations or systems.
Add to this, the world has become more environmentally aware than ever, with businesses making an effort to implement and promote green practices given that consumers' buying decisions are now influenced by a brand's ethical values and responsibilities. In 2020, businesses must drive social change. Consumers demand it.
While profitability remains important, business mentality has shifted over the past 10 years. Today, a company's success is not only led by its sales but also how its business serves a higher purpose.
So the need to reduce carbon footprints, make the world more sustainable and boost business reputation is certainly also serving as a driver for the growth of the refurbished market. Companies have really seized the opportunities available in having a sustainable philosophy, making green initiatives very attractive and relevant for businesses of all types and sizes.
Do your Homework
Navigating in the reseller market of refurbished hardware can be quite a challenge. For IT professionals, it might even feel like walking in the jungle trying to successfully make their way through without falling into dreadful pitfalls. However, refurbished equipment can add considerable value to your business, which makes the jungle cruise worth the effort.
By going the refurbished route with your network infrastructure, you can significantly extend the lifecycle of your equipment, postpone investments and lower the total cost of ownership. But what needs to be considered when parachuting into the jungle of refurbished hardware?
First, you need to find an established, reliable and trustworthy provider. Although it is easier said than done, it is essential if you want to be sure to get the quality and reliability you require. Get to know the history, details and capabilities of the company. Additionally, you need to know if the provider presents proper details and documentation relating to the processes for quality control, testing and data destruction.
When you have finished your homework in search of a vetted provider, it is important to consider what you actually need to soup up your IT infrastructure. In the refurbished hardware market, there is no quick fixes or one-size-fits-all solution. Every organization has its own way of running a business, with different growth plans, budgets and requirements. Sometimes it makes sense to upgrade your existing equipment with refurbished products rather than buying new systems, but in other cases, it could be a bad business decision.
Evaluate the pros and cons, and when it does make sense, knowing your exact needs can be the difference between success and failure.
Getting the most from your next upgrade with refurbished hardware is also a question of timing. Like in any other buying process, it is all about keeping your eyes and ears open. When new products are released, costs on older models will immediately drop. It is like buying a refurbished iPhone, the moment Apple releases its new iPhone 11. You may not have the latest technology and updates, but you certainly get a phone that does the job at a fraction of the cost.
The refurbished hardware market is a growing jungle with a wealth of opportunities for organizations and consumers to gain competitive advantages and be more eco- and price-conscious in their buying behavior. If you are not prepared, it can be like the Amazon—terrifying and dangerous. But with the right knowledge and information to make smart choices, consider yourself armed and ready.
Time for an Upgrade?
If you are looking to upgrade and enhance your IT infrastructure, please contact Kimbrer Computer. We have 25 years of experience providing quality refurbished servers, storage and networking equipment to meet specific and evolving needs of organizations across industries.
With our broad expertise ranging from end-of-life spare parts through to custom-configured solutions and technical support services, we have the capabilities required to help businesses maintain and improve IT performance and realize a greater return on their investment.