As technology evolves, the need for modern IT infrastructure becomes increasingly crucial. Organizations face a decline in efficiency after their systems age between 36 to 48 months, necessitating significant management effort and extended time investments. Consequently, replacing or refreshing aging IT infrastructure has become imperative to maintain competitive operations. Additionally, with advancements in artificial intelligence accelerating, there is a heightened demand for up-to-date hardware and innovative architectures, effectively reducing the lifespan of existing technologies.
Benefits of Subscription-Based IT Solutions
To address these challenges, subscription-based payment models are gaining traction. These models empower businesses to adopt a proactive technology lifecycle management strategy, ensuring they benefit from the latest innovations while supporting the circular economy.
Overview of Dell Technology Rotation
Dell Technology Rotation offers organizations an alternative to traditional buy-and-hold approaches for servers and storage. By facilitating the acquisition, use, and return of technology within a timeframe of 12 to 60 months, companies can avoid hefty upfront capital expenditures.
Hidden Costs of Maintaining Aging Infrastructure
A recent study by IDC emphasizes the significance of adopting subscription-based solutions with predefined refresh cycles. Participants utilizing Dell Technology Rotation reported refresh cycles that were, on average, 36% faster for servers and 43% faster for storage. This proactive strategy aids in circumventing the often-overlooked costs linked to aging IT infrastructure.
Efficiency Gains and Downtime Reduction
The IDC study revealed notable cost savings for organizations implementing Dell Technology Rotation, achieving an average efficiency gain of 37% for both server and storage systems. Moreover, this approach reports up to 62% reduction in unplanned downtime for servers and 78% for storage. As IT infrastructure management becomes more burdensome after three years, organizations must consider the benefits of timely refresh cycles.
Environmental Responsibility: The Circular Economy
Dell’s subscription service not only enhances operational efficiency but also aligns with sustainability initiatives. The Dell Technology Rotation is part of a comprehensive suite that ensures secure and sustainable processes for equipment management, from acquisition through reuse and recycling. In 2023, 95% of returned systems were refurbished and given a new life, while the remainder was responsibly recycled in compliance with legal standards.
Case Study: Cegal’s Choice for Sustainability
Cegal, a Norwegian IT service provider for the oil and gas sector, selected Dell to enhance its sustainability efforts. “The ability to return equipment for refurbishment was a significant criterion for us. This partnership enables us to mitigate waste and continue the cycle of reuse,” stated procurement manager Lar Bjørnar Jøssang.
Future-Ready Technology Management
The IDC findings illustrate that aging IT infrastructure can lead to increased expenses, emphasizing the importance of regular project refresh cycles. Subscription-based solutions not only facilitate current technology management but also contribute to the overall sustainability efforts of organizations. By distributing financial payments over time, these models lead to efficiencies and cost reductions, positioning organizations to leverage AI-driven infrastructure and unlock growth potential.
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1Data derived from Dell Financial Services global records, Feb 2023-Jan 2024. ‘Systems’ refers to desktops, notebooks, workstations, servers, and storage equipment.
