Many things improve as they age. IT infrastructure is not one of them. After 36-48 months, aging infrastructure loses efficiency, requires more hands-on management, and takes additional time, making the positive financial case to replace or refresh aging infrastructure. In addition, AI capabilities are speeding ahead faster than ever, mandating modern hardware and novel architectures and shortening the shelf life of existing IT infrastructure.
For these reasons, subscription-based payment solutions for IT infrastructure are gaining popularity. They enable organizations to deploy a technology lifecycle management strategy, take advantage of current technology, and contribute to the circular economy.
Subscription-based solutions, like Dell Technology Rotation, provide an alternative to buy-and-hold solutions for servers and storage. That way, organizations can avoid large upfront capital expenditures (Capex) and acquire, use, and then return technology after the initial term, which ranges from 12-60 months.
Incurring the “Hidden” Cost of Aging IT Infrastructure
A recent IDC study quantifies the case for adopting subscription-based solutions that establish a fixed refresh schedule and technology life cycle management strategy. IDC study participants using Dell Technology Rotation report faster refresh cycles, averaging 36% faster for servers and 43% faster for storage. For organizations, faster technology refresh cycles can proactively prevent aging infrastructure’s inherent—and often hidden–costs.
The IDC study calculated the cost savings realized when organizations leverage Dell Technology Rotation. IDC calculates an average gain in efficiency of 37% for both server and storage resources. In addition, Dell Technology Rotation customers report fewer outages and faster outage resolution, creating 62% less unplanned downtime for servers and 78% less for storage. In terms of staff time, IT infrastructure management activities increase after 3 years; servers require 48% more staff time, and storage 49% more.
By rotating servers and storage more frequently, customers gain the advantage of newer equipment, which uses less power and takes up less space. Harbor, based in the U.K., helps organizations keep data protected and constantly available. Harbor chose Dell Technology Rotation to regularly refresh its servers to ensure optimal performance and lower energy consumption. “Customers gain solutions with Dell Technology Rotation that meet their changing requirements while operating at a lower total cost of ownership (TCO),” explains Nick Barron, chief operating officer at Harbor.
Contributing to the Circular Economy
Dell Technology Rotation is part of Dell Payment Solutions, a portfolio of options for organizations ensuring access to secure and sustainable processing of equipment, including acquisition, use, reuse, and recycling. In 2023, 95% of all systems returned to Dell Financial Services gained a second life by being refurbished and reused¹. The remaining systems were recycled in adherence with all applicable international, regional, national, and local laws and conventions.
Cegal, headquartered in Norway, provides IT services to oil and gas companies and selected Dell to help advance its sustainability goals. “It was a differentiator for us that Dell Technologies had a program that allowed us to return equipment for refurbishment when it’s no longer in use. This way, we know that we’ve reduced waste and that components are reused,” shares Lar Bjørnar Jøssang, procurement manager at Cegal. View the brief Cegal customer video here or read the two-page case study here.
Unleashing New Possibilities
As the IDC study findings show, aging IT infrastructure and its related expenses can benefit from regular refresh cycles. A subscription-based solution helps organizations do just that, enabling a technology lifecycle management strategy to keep IT current while contributing to the circular economy. From an operational spending standpoint, subscription-based solutions spread financial payments over time, increase efficiencies, and lower costs. That’s how the Dell Payment Solution portfolio provides customers with options that can usher in AI-powered infrastructure and unleash new possibilities for growth.
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1Based on Dell Financial Services global data, February 2023-January 2024. Systems means desktops, notebooks, workstations, servers and storage equipment.
