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Controlling Network Maintenance Costs
from  Network Hardware Resale

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There’s growing concern amid organizations of all sizes and types regarding the soaring costs of network maintenance. At a time when everyone is facing economic stress and IT budgets are cut to the bone, increasing numbers of companies are finding they no longer can afford the pricey proposition that comes with original equipment manufacturers’ (OEMs’) maintenance contracts.

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There are growing concerns amid organizations of all sizes and types regarding the soaring costs of network maintenance. Continued economic stress has flattened IT budgets, with very few signs of relief on the horizon. In fact, a recent report from industry analyst firm Dell’Oro Group predicts a gloomy forecast for the remainder of 2009, underscored by the first-time ever decline of IP lines for the PBX market and a downturn in the router market for the first time in seven years.

Research gathered by Sanford C. Bernstein & Co., a widely recognized Wall Street research firm, reinforces this downward trend. Spending in data networking equipment is projected to fall by 10 percent despite an ongoing increase in networking demands due to telecommuting, unified communications, Web 2.0 adoption and IP video.

As a result, more and more companies are investigating ways to do more with less—especially when it comes to dealing with the pricey proposition that comes with a sole reliance on traditional OEM maintenance contracts.

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