Arch Technology Solutions Saves MSPs from the Tyranny of OEM Service Contracts
MSPs running their own data centers have become painfully aware of the ever-increasing costs of service contracts and vendor-based support. Further adding to that misery is when MSPs support customer on-premises hardware as part of their business strategy. While service contracts with equipment vendors are a good idea in general, many service providers are finding that once multiple vendors enter the equation, and as equipment ages, costs begin to escalate and resolving problems – especially incompatibilities – becomes more problematic.
For many MSPs, the cloud seemed like the most logical answer to shift hardware support costs off to another entity; yet, moving customers into pure cloud environments that ran under the likes of Azure or AWS proved to be a many faceted process, with many customers opting for a hybrid-cloud approach, meaning that hardware was still part of the equation. What’s more, many MSPs decided to self-provision their own cloud offerings using popular cloud-computing stacks, meaning that the need for vendor-provided support and service contracts remained in effect.
That inability to delve through the red tape of service contracts and garner the needed support also has an impact on how customers view an MSP. Customers don’t want excuses, they don’t want down time, and they don’t want to have to deal with the problems that many MSPs have promised to prevent. MSPs might only have the luxury of blaming a vendor for problems a few times before becoming labeled as ineffective and ultimately losing customers.
Seeking Alternatives to Traditional Service Contracts
Oklahoma City-based Arch Technology Solutions recognized the failings of the traditional service-contract model and has created an innovative approach that eliminates the common weaknesses found with OEM-provided contracts. It’s a path forward that gives MSPs, distributed enterprises and data-center operators options beyond vendor provided service contracts. Not only does Arch provide an alternative to those OEM service contracts, the company effectively reduces the cost of service and unifies contract administration and support under a single umbrella — all of which could prove to be critical concerns for MSPs and their customers. Prior to Arch’s approach, MSPs and others could only expect to get advanced support from the vendor via a service agreement, and once warranties expired, those costs would rapidly escalate.
In other words, while the value of the equipment would decrease, the cost to support that same equipment would increase. Ultimately, rising costs would cut into profits, making the MSP model less appealing to operators, and perhaps forcing MSPs into the public cloud and forgoing control over their own destinies by eliminating on-premises, cloud based solutions.
Arch offers a different approach, one that shifts the liability associated with service-contract management to a third party, which can also consolidate multiple service contracts under a single SLA. That means MSPs, enterprises and others looking to free themselves from the tyranny of vendor service contracts now have another choice through Arch, a choice that can deliver as much as a 45 percent savings on contract costs, while also increasing uptime and improving problem resolution.
Arch provides service contracts for equipment from popular vendors, eschewing the need for vendor negotiations and also unifying service and support under an ideology that offers a single-pane-of-glass view of hardware management. Arch also offers the option of taking on the management and execution of existing contracts, which proves to further reduce administrative overhead and unify management into a comprehensive offering that can include support for equipment deemed unsupportable by the OEM.
MSPs seeking to learn more about OEM service contract consolidation, improved support services, and the future of service contract execution can attend Arch’s new webinar series.