Why do manufacturers like Dell, EMC, IBM and HP declare products End-of-Life (EOL) and End-of-Service (EOS)?
There are many reasons why original equipment manufacturers (OEM’s) declare equipment End-of-Life and End-of-Service including:
- The supply of replacement parts diminishes
- Technological advancements and innovation creates new hardware & software
- There is pressure on manufacturers to grow revenue by creating new products to replace old products in the field
- There is less market demand for specific models–this means the production of that model is no longer profitable
- OEM’s that are public companies, face pressure from investors to increase profit and revenues
- OEM’s need to keep up with market competition and even surpass their competitors
From a business perspective, it makes sense for EOM’s to declare products as End-of-Life and End-of-Service to keep up with the competition and pressure to increase revenues.
It may be smart for the OEM’s but it’s not always best for product owners. Here are some reasons why you should think twice before replacing EOL and EOS equipment.
- In some cases the installed equipment may have a longer useful life for the user, up to a decade longer. Plus there may be a number of advantages in the old technology.
- New technology may not be required
- The timing of EOM declaring product EOL and EOS usually does not align with the company’s budget for the purchase of new products
- Replacing hardware often requires changes in skilled labor to support the change
- Hardware changes often require significant software changes. These changes increase expenses, including: new software, implementation, customization and testing
- A major change in staff and culture may occur based on the new hardware
- Dumping useful technology is a waste of resources and is harmful to the environment
What should you do when manufacturers declare products End-of-Life and End-of-Service?
There is no reason to panic. Here are a few things to consider:
- Manufactures often continue Operating System Software Support for at least 3-5 years after the EOL date
- There are many options to extend your support.
- A Third Party Maintenance Company can provide repair services, replacement parts and on-site spares.
You may face pressure from your OEM of choice. Remember, one of the primary reasons manufacturers produce new technology is to increase revenue.
- OEM’s feel significant pressure to grow revenues & profit to increase market value
- OEM sales professionals are paid to move and sell products!
- Manufacturers will try to convince you that if “Third Party Companies maintain the equipment and something goes wrong, you will have to pay a recertification fee”
- Manufacturers will say that “we won’t provide software support apart from hardware support”
- They will also say that “we will only provide you with a maintenance contract if you put all equipment under the contract– including any End-of-Life hardware”
Weigh your options and make a decision that will truly benefit your company’s bottom-line – don’t crumble under the pressure!
The fact remains that replacing equipment that is still in working condition is not necessary. The bottom line is that the manufacturers sales team will not make commission if you keep your working, useful equipment. Don’t buy into the stress and urgency; it simply is not true.
Make an educated decision. Talk with a Third Party Maintenance Company about extending support. Become educated about the options you have to keep your technology functioning as long as possible. It’s not just eco-friendly– it will save you money!
Third Party Maintenance Companies, like Endeavor Services Group, will reduce your costs, provide more attentive & faster service, and offer customized service options for your specific needs.