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The Sneaky Costs of End Of Life Cycle Servers

Servers, Storage and Networking | Posted on March 9, 2018 by Angela Cope


Three years ago, a friend of mine got caught up in the homeownership dream. He spent 18 months saving the least amount he needed to buy a condo. While he was successful in purchasing his first property, he soon discovered the “cons” of being a homeowner.

The condo came with many flaws that he wasn’t financially ready to take on. After 8 months of appliance fixes and breakdowns, and a condo fee increase, he had to sell his place. I wouldn’t say this was a failed attempt at owning a property. Rather, it’s a lesson: Sometimes you shouldn’t rush things.

We are seeing and hearing similar stories with organizations that are making the move to cloud-based solutions. Companies have rushed into the cloud without a plan in place. In fact, it’s predicted that almost 60% of cloud deployment projects are expected to fail this year.

There are multiple reasons that a cloud migration could fail. Some IT teams have failed to understand the cloud migration skill sets and strategy gaps against their future Hybrid IT state. While others haven’t budgeted for added requirements like security.

Like owning a home, cloud computing is a great investment. The cloud enables your organization to save moneyimprove innovation, and change the way your business operates. But also like wanting to own a home, it costs money to make the promise of the cloud a reality. And for some businesses, the budget to make the move to the cloud isn’t there.

Staying Grounded In Your Current Data Centre

If your organization isn’t planning on moving to the cloud anytime soon, is your data center in good shape? Your IT team may not be looking at cloud solutions yet, but it doesn’t mean that demands on your servers haven’t changed. The Cisco Global Cloud Index recently reported that “overall data center workloads and compute instances will more than double (2.3-fold) from 2016 to 2021.”

The business may not be investing in cloud solutions, but the agility required to meet demands hasn’t stopped. You may be cutting costs to save for the cloud, but you shouldn’t sacrifice a data center refresh. It would be like refusing to repair a leaky old roof because you’re saving for a home. It ends up costing you more money in the long run.

IDC reported that by neglecting to upgrade a server infrastructure in a timely fashion, IT organizations can lose up to 39% of peak performance. The costs go up when you factor in a 40% rise in application management costs and 148% in server administration costs. Dell EMC reports that server operating costs in years 4-6 of deployed life are more than 10x higher than the initial acquisition cost of a new server.

According to  IDC, there are five key reasons to upgrade your servers:

  1. Relative server performance declines over time as costs increase
    Server performance decreases by 14% each year. By the fifth year, you’re running a server that has only 40% of its performance capabilities.  What comes with lower performance? An increase in unplanned downtime of course.
  2. Modern features enhance asset management
    New servers have the latest firmware and patching updates which keeps devices secure and in compliance with enterprise and government specifications.
  3. Optimized systems accelerate performance
    High-end business applications need to run in a virtualized environment. Modern servers improve the ability for higher virtual machine density and larger virtual machines.
  4. Predictive diagnostics improve reliability
    Unplanned downtime is both costly and frustrating. Newer systems come with predictive capabilities that warn of incompatibility issues or imminent failures.
  5. Soon-to-expire service warranties
    Service contracts typically expire after three to five years. Frequent failures result in higher labor costs, and replacement parts are expensive and often hard to find.

Don’t Stop Dreaming

My friend who purchased his condo continues to work towards his dream of owning property. And now he has a better understanding of what to expect when he purchases his next home. He’s just now building out a plan and talking to the right people – like any IT team should with their data center.

Plan your perfect home: Rapid innovation in data center technology adds a level of complexity to the plan. Software-defined networks converged and hyper-converged infrastructure has resulted in an explosion of products and solutions available from the marketplace. This has paradoxically outpaced IT’s ability to evaluate options and set strategy. Questions arise. We help our clients understand their options through our consultative approach and assessments.

If you want to make the cloud migration happen in the near future, invest in upgrading your servers. It will end up saving you money in the long run.

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