Thinking the time has come again to purchase a new server to update your systems? As you know, a new server is a huge investment that typically requires a long-term commitment. Make sure to save as much as possible over the life of your contract and don't get caught paying too much. While you may be used to this by now, it never hurts to take some time to make sure you are truly getting the best possible price.
Vendor contracts and pricing can be lengthy and written in a manner than only lawyers can understand, so always be careful when reading over them and negotiating a new server purchase. You can save yourself money and time by keeping these three things in mind before you sign on the dotted line:
1. Buying direct doesn't always mean you're getting the best price.
It's a common misconception that buying direct from the vendor will offer less expensive pricing than resellers. However, you may be able to get a better deal from the reseller since many large vendors are now using much more aggressive pricing strategies. Always shop around to find the best price before you purchase.
2. Don't expect consistency with price quotes.
Unfortunately, there is no standard when it comes to price quotes for servers. That why it is always a good to never take the first deal you see; even if it is from your preferred vendor. Three quotes for the same server may all be completely different depending on which vendor (or reseller) you ask, who handles your account and what discounts they want to offer. It is possible to spend up to 40 percent over market value if you aren't careful.
3. Vendors can sign you up for premium technical support without you knowing about it.
New server contracts include an enormous amount of information about your services. It is not uncommon for a vendor to automatically include premium technical support as part of the deal, and fail to mention it to you. Know what level of support you will need in advance so you don't end up paying too much for service you don't need. And always read the contract thoroughly!
Adding new servers or replacing old ones is necessary to keep up with your company's IT needs. This can be a big blow to any IT budget, but it is possible to save money if you do your homework and proceed with caution.
Vendor contracts and pricing can be lengthy and written in a manner than only lawyers can understand, so always be careful when reading over them and negotiating a new server purchase. You can save yourself money and time by keeping these three things in mind before you sign on the dotted line:
1. Buying direct doesn't always mean you're getting the best price.
It's a common misconception that buying direct from the vendor will offer less expensive pricing than resellers. However, you may be able to get a better deal from the reseller since many large vendors are now using much more aggressive pricing strategies. Always shop around to find the best price before you purchase.
2. Don't expect consistency with price quotes.
Unfortunately, there is no standard when it comes to price quotes for servers. That why it is always a good to never take the first deal you see; even if it is from your preferred vendor. Three quotes for the same server may all be completely different depending on which vendor (or reseller) you ask, who handles your account and what discounts they want to offer. It is possible to spend up to 40 percent over market value if you aren't careful.
3. Vendors can sign you up for premium technical support without you knowing about it.
New server contracts include an enormous amount of information about your services. It is not uncommon for a vendor to automatically include premium technical support as part of the deal, and fail to mention it to you. Know what level of support you will need in advance so you don't end up paying too much for service you don't need. And always read the contract thoroughly!
Adding new servers or replacing old ones is necessary to keep up with your company's IT needs. This can be a big blow to any IT budget, but it is possible to save money if you do your homework and proceed with caution.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT expense reduction consulting consulting. This article, Stop! Don't Spend Too Much On Your Next Server! is released under a creative commons attribution license.
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