Industry Analysts Say Migration to Independent Maintenance Programs Now Past The Tipping Point with Over Half of Enterprises Actively Seeking Out OEM Alternatives
SANTA BARBARA, Calif., Aug. 21, 2018 (GLOBE NEWSWIRE) — OSI Global IT, a leading vendor of IT hardware and support services, announced today that has increased growth projections for its Systain business unit in response to the accelerating momentum of organizations moving to independent support and maintenance services. Based in Santa Barbara, Calif. and providing 24/7/365 TAC and on-site technical support worldwide, Systain delivers Third-Party Maintenance (TPM) to enterprises seeking a value-priced replacement or supplementary resource to traditional OEM (Original Equipment Manufacturer) support programs.
“Over the past several years the market share of TPM support has grown exponentially, very similar to the expansion of the pre-owned network hardware sector during the 1990s,” says Christian Saunders, co-founder and president of OSI Global IT. “Both of these factors have occurred due to the erosion of OEM dominance in the industry. The result is that instead of following manufacturers’ end-of-life upgrade guidelines and automatically renewing maintenance agreements, many organizations are ‘sweating’ their assets, buying pre-owned equipment, and moving to an independent support program such as Systain.”
Launched as an extension of OSI Global IT’s OSI Hardware network and data center equipment business, Systain provides an alternative to support contracts from equipment manufacturers such as Cisco Smart Net Total Care, empowering organizations to significantly reduce the cost of IT hardware maintenance and avoid paying for coverage not applicable to post-warranty hardware.
“Our philosophy is to give control back to the customer,” Mr. Saunders adds. “Having a flexible, custom-tailored Systain program doesn’t simply drastically reduce support expenditures, it gives our customers the ability to choose when to upgrade hardware based on their business objectives. This is especially important when post-warranty and pre-owned hardware or other conditions arise that are outside OEM maintenance contracts.”
According to industry analyst Gartner, Inc., the Third-Party Maintenance sector has benefited from the desire of stakeholders to find viable, lower cost and more flexible alternatives to traditional OEM support and as a strategy to replace original warranties which expire to avoid significant increases in OEM post-warranty pricing. The firm estimates that approximately 60% of enterprises are giving “active consideration” to TPM offerings from non-OEM affiliated vendors.
OSI Hardware was recently named in a Gartner research note, ‘Market Guide for Data Center and Network Third-Party Hardware Maintenance’ (August 7, 2017, ID: G00327263). In the report Research Director, Infrastructure Services, Christine Tenneson wrote: “OSI [Global IT] competes as a secondary hardware provider and TPM, selling both directly to enterprises and through channel partners. OSI has access to more than 330 parts depots through partners and its services are offered in multiple tiers, ranging from 8x5xNBD to 7x24x4. OSI’s TPM offering today is extremely network-focused, with Cisco and Juniper Networks equipment accounting for nearly all TPM revenue.”
Mr. Saunders credits the success of Systain to the company’s history as one of the industry’s highest volume resellers of secondary market servers, routers, switches and new optical transceivers, cables and accessories.
“Our mission as a go-to source of pre-owned hardware has always been to outperform the OEM model with better responsiveness, faster delivery, and measurably greater value,” he states. “We’ve taken the same approach with our maintenance programs by offering a range of SLAs (Service Level Agreement), in-house Level2/3 Engineers team, 600 service points around the world.”
Visit Systain online at www.systain.io for further information and to request a free support consultation with a service technician.
About OSI Global IT
OSI Global IT is a leading supplier of pre-owned, surplus and new-in-box IT infrastructure hardware for organizations seeking to break free from the constraints imposed by outmoded and self-serving OEM business practices. Our OSI Hardware, OSI Optics and Systain business units empower our customers to avoid unnecessary expenditures, minimize complexity, and maximize the buying power of their IT budgets. By offering OEM products consistently priced at 70% to 90% below OEM list price, we’ve become the “go-to” hardware vendor and IT maintenance supplier for clients here in the U.S. and Canada, and across the globe. For more information, call 1-866-602-4674 or visit www.osihardware.com.
Systain is OSI Global IT’s maintenance service designed to supplement or replace OEM support contracts at a fraction of the cost. Our customizable Service Level Agreements (SLAs) deliver world-class 24x7x365 TAC coverage with the advantages of Level 2/3 engineer troubleshooting, faster escalation, and next business day or 4-hour delivery hardware replacement from our 600 global forward stocking locations. By tailoring our services to meet their business objectives, Systain helps our clients reduce Opex costs, bridge OEM maintenance gaps, and mitigate the risks, disruption and unnecessary overhead of OEM upgrade policies. Contact us today to explore the benefits of a support strategy based on your specific end-to-end infrastructure coverage requirements. For more information, call 1-866-602-4674 or visit www.systain.io.