Defer IT Capital Equipment Expenses White Paper

This paper examines how the high cost of post-warranty OEM maintenance motivates traditional 3-year hardware upgrades. It systematically shows savings of 40% to 60% are available through the combined use of non-OEM support (third party) and maintenance to defer IT infrastructure capital expenditures (CAPx).

This white paper details how OEM maintenance and regular IT hardware expenditures negatively affect the bottom line when viewed through the alternative approach of non-OEM (third party) support and maintenance combined, with deferred capital expenditures in computer hardware.

By examining IT support and maintenance expenditures at a theoretical company (based an actual examples), the paper illustrates savings versus expenses over a three-year period.

Other factors are also cited as reasons for CAPx deferment, such as Moore's law, which states that computing equipment gets exponentially faster and less expensive each year, hence delaying purchases increases future IT equipment value.

The implications demonstrate that considerable savings can be realized by many IT departments by deferring CAPx investments. These substantial savings are particularly attractive and worthy of further consideration in the current - or any - economy.

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