It appears everything is increasing in cost - gasoline, food, taxes, clothes, etc.  You would think in a time when competition is great and technology is superior, you would see prices dropping or at least staying the same.  However, IT maintenance costs are not immune to this price increase phenomena either.  Just recently, I received another letter from IBM stating they were once again raising the price on their maintenance.  You may be asking yourself “Equipment is getting older; parts are less expensive, so why are the costs going up?"

Well, OEM's are exactly that - Original Equipment Manufacturers.  They are in the business to manufacture equipment and sell new equipment; not maintain old equipment.  IBM knows that a customer’s first instinct is to look at cost of repair vs. cost of new equipment.  They increase the cost of their maintenance, to make the ROI on selling their new equipment make more sense.  They also depend on selling you the “fear factor” of the instability of the old equipment.  Funny how it was new and state-of-the-art equipment when they sold it to you two years ago with your fresh 2 year warranty.

Break the cycle and don’t be held captive by the OEMs.  Before committing to the overpriced, extended maintenance contract or sinking more potential profits into new equipment, make sure you evaluate all your options.  Virtually all manufacturers and their equipment are covered by reputable third-party maintenance companies which offer more flexible programs, at a fraction of the cost.  Just because your maintenance contract is out-of-date, does not mean your equipment is end-of-life.  Equip yourself to make the decision that serves your company best; not the one that serves the sales guy’s quota.