Storage needs have evolved drastically in the past few years. Establishing a proactive storage refresh plan can help improve your performance in alignment with business demands. Your company’s IT should be able to meet today’s unpredictable storage needs, while addressing scalability, cost and unified management.1 A comprehensive asset management plan can help you achieve these results by replacing your existing infrastructure and properly handling the removal of old equipment. The current stage of your equipment’s lifecycle can help determine your storage refresh path.
Phases of the IT lifecycle
1) Ready to refresh. Fully depreciated assets or at end of useful equipment life.
The end of the IT lifecycle is a crucial time to consider your comprehensive storage ecosystem from both a refresh and retirement standpoint. In 2012, the top three storage concerns are data security, inefficient resources and the ability to budget according to business demand. 2 To overcome these challenges you need a full lifecycle view of your storage infrastructure. With complete line of sight across the lifecycle, you can make more strategic decisions around budgeting and resource allocation. Making an outright purchase however, may include high initial CapEx and non-customized asset management. Leasing places your IT on a programmatic refresh cycle. This can allow you to spread payments over the useful life of the technology and can address end of life concerns such as data security. At the end of a lease, your financing partner should provide portfolio management options such as a buy-out, lease renewal, month-to-month extension or equipment return. These options can provide the end of term flexibility you need to correspond with business needs.
2) Stuck. Current storage investment not fully depreciated, and current project not new.
You don’t have to retain equipment that doesn’t meet your demands just because it hasn’t fully depreciated. Holding onto aging technology that lags behind your business needs can impede performance. In fact, corporations spend more on equipment maintenance and operation than on new IT projects. 51% of IT budgets in 2011 consisted of ongoing operations and maintenance costs, while only 30% of budgets where allocated for new IT initiatives and projects.3 The longer companies wait to address their IT hardware and software problems, the more they could be spending on maintenance and productivity costs. If you own your equipment, consider using an asset recovery service to sell and recoup any remaining residual value from your IT. With that cash inflow, you can upgrade your lagging technology faster, potentially allowing for a competitive advantage. Alternatively, if on a lease, the opportunity for a mid-term upgrade could provide ultimate flexibility for new equipment acquisition. Make sure that you have the ability to refresh storage at your own pace.
3) Short-term fix. Not ready for storage refresh, but have a particular project in mind.
You may not be immediately ready for a refresh, but have a certain project in the queue. Short-term rentals can provide quicker turnaround for specific applications such as spiked seasonal demands or product launches. They can also allow you to try equipment before purchasing, or act as a risk-free test environment for a new system. Additionally, rentals can accommodate larger workloads without significant equipment CapEx.
Regardless of point in time, your company should be able to acquire and modify storage on demand. An asset management plan can provide built-in flexibility to evolve your storage ecosystem in line with long-term and short-term needs. HP Financial Services can partner with your company to adapt a programmatic storage lifecycle. We can tailor your IT strategy during any step of your storage refresh path, with options such as asset recovery, sales leaseback and short term rentals.
Keep up with fluctuating storage demands. Contact HP Financial Services today.
1HP Converged Storage Whitepaper
2State of Storage. InformationWeek. Feb, 2012.
32012 IT Budget Planning for CIOs. Forrester Research, Inc.. October 27, 2011
4Managing Unstructured Data in the Cloud. IDC, 2011.
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