Four Key Questions that CFO’s should be asking their IT department heads

By Smart 3rd Party, a friend to Andersen Alumni

The 2019 budgeting season is officially upon us. With the ever-changing IT landscape and the increased scrutiny of IT spending, how will you optimize your IT budget? First, think low hanging fruit. First assess the key components of your infrastructure, such as the support and maintenance of IT hardware (server, storage, and networking devices), where 15% - 25% of enterprise IT budgets are consumed.

Original Equipment Manufacturers (“OEMs”), such as IBM, Cisco, Dell EMC etc., provide quality support, but for only a finite period of time. Built in obsolesce, product upgrades, and increasing post warranty maintenance costs drive the OEMs’ business model.

Tightening budgets and increase pricing for OEM support open doors for Third-Party Maintenance providers, or TPMs. TPMs offer flexible, customizable contracts, averaging 60% savings off OEM support prices, and in some cases, up to 95% off, according to a recent Gartner study.

Four Key Questions that CFO’s should be asking their IT department heads when aiming to optimize IT operating costs:

  1. What is the actual useful life of our IT Hardware assets and when is our next upgrade?
  2. What is our annual maintenance cost of IT Hardware vs. the number of annual service calls?
  3. When was the last time to Maintenance Audit was performed?
  4. What percentage of your annual maintenance spending is with OEM’s vs. TPMs?

About Us: Smart 3rd Party is a Pure-Play, Third-Party Maintenance provider focusing strictly on supporting clients’ infrastructure and providing a high-quality service experience at a competitive price. Using a Maintenance Cost Audit, S3P can determine where inefficient spending exists and how to leverage both OEM and Third-Party Maintenance in a blended, hybrid-IT solution, tailored to your environment. For more information please contact kpeck@smart3rdparty.com