Pricing Strategies hird Party Maintenance Reducing Hardware Support Costs for the Legal Community.pptx by hcj


									                      Third Party Maintenance: 
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Reducing Hardware Support Costs for the Legal Community


 Featuring: John Burchard – Strategic Planning Director, Park Place Technologies

• State of the Third Party Maintenance (TPM) Market
• Key Macro Themes
• Key Considerations for Legal Firms
• TPM Value Proposition
• Considerations in Selecting a TPM
• Q&A

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TPM Market: IT Spending Trends

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TPM Market: Hardware Maintenance

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TPM Market: Maintenance by Industry

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Macro Trend: Economic Conditions
 •   Economic conditions since 2008 have been pushing companies from most
     industries to actively seek ways to cut costs.
 •   IT budgets have been a source of cost cutting for many companies,
     including at Legal Firms. IT staff are being asked to do more with less.
 •   More and more companies turning to Third-Party Maintenance (TPM) as a
     way to rationalize overall IT spending.

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    Macro Trends: Virtualization
Virtualizations continues to mature and many companies have consolidated
workloads through increased levels of server virtualization. For the support
industry, increased virtualization has led to the following:

      •   Slower growth rates in terms of number of servers sold, but
          increased utilization levels make individual servers even more
          mission critical.
      •   More expensive and robust servers with increased CPU and memory
      •   Increased use of virtualization optimized hardware such as blade
          servers and storage arrays.

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      •   Significant increases in storage needs leading to significant
          investments in storage capacity.

All told, virtualization has not hurt overall revenue for support services, but
growth levels have flattened.

Macro Trends: Cloud Computing
Growth for both public and private cloud computing continues to accelerate.
Our expectations for cloud computing are as follows:

      •   Small- to mid-sized companies lead the adoption of the public cloud,
          starting with non-critical applications;
      •   Mid- to large-sized companies will shift towards private cloud before
          adopting public cloud;
      •   Security concerns will keep large companies from shifting until
      •   Mission critical work loads will be slow to shift;

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Overall, cloud computing is here to stay and will continue to grow. However,
the shift to the cloud will be gradual. Further, overall growth forecasts for both

hardware sales and support services remain positive over the next five years
despite cloud computing.

Who Should Consider Using TPMs?
 Companies with mature stable applications on equipment that has reached the
 end of the manufacturers warranty or legacy equipment that is no longer
 supported by the OEMs.

 Companies of all sizes, from small companies to Fortune 50 companies, and
 across all industries utilize TPM services.

 Gartner Research estimates that most firms use some form of TPM. Overall,
 they estimate the following:

      Ø 20% will always use only the OEM for maintenance
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      Ø 20% will never use the OEM for maintenance

      Ø 60% will use some mix of the OEM and TPMs

 OEMs themselves leverage TPMs to help with multi-vendor customers or for
 additional geographic reach.

Comparing the Value of TPM and OEM Services

  TPMs can help with overall cost reduction, cost avoidance, increased business
  agility and risk reduction.

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    Sector Profile: Legal Services
What our Legal clients have told us:

•   Cost cutting remains prevalent with a focus on further virtualization and
    lowering IT support costs.
•   Mid- to Large-sized legal firms have IT assets in multiple locations,
    primarily in major city centers.
•   Security and confidentiality are key concerns.
•   Storage needs continuously growing, servers primarily x86 or blade
•   Relatively lean IT staffs
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    Thus, our legal clients have been seeking:
      Ø Multi-vendor support

      Ø Geographic reach
      Ø Flexible contracts
      Ø Strong storage services

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      Legal Services – Equipment Profile

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Source: ILTA 2010 technology Survey

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Key Criteria for Selecting TPMs

•   Experience – Ensure there is a good fit between your equipment profile and the TPM
      Ø Platform
      Ø Geographic Market
      Ø Escalations
            ─ Software issues
            ─ Spare parts supply chain
            ─ Proactive support
•   Number of employees – Badged Field Engineers versus an FE network
•   History of the TPM organization
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    Financial Stability
    Do not judge a TPM solely on revenues


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Best Practices – Communication

Your relationship with a TPM should be treated as partnership between both
parties from the time of quoting, onboarding, during the current term and upon

“Change is inevitable – except from a vending machine.” – Robert C.

     •   Change management is critical and your organization can benefit
         with consistent two-way communication.
     •   TPMs can act as a vendor-neutral advisor when considering

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         upgrades, refreshes, optimization and scaling environments
     •   Equipment can be upgraded in many cases to help improve
         processing power, memory, and storage capacity, extending the

         useful life of existing equipment and applications.
         TPMs can also help provide services such as assisting in data center
         moves, asset disposal and data destruction.

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Best Practices – Software Considerations

  You should always review your software needs prior to migrating to a TPM.

       •   If the applications running on the hardware will require OS patches
           and upgrades, you should review your software support contracts as
           in some cases it may not make sense to move to a TPM.
       •   Equipment that is stable and the OEM is not making significant
           changes to the OS or micro-code are excellent candidates for TPMs.
       •   OS patches and micro-code are proprietary intellectual property of
           the OEM, unless upgrades are publically available. TPMs are
           generally not authorized resellers; thus, conduct due diligence.

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       •   Patches and micro-code upgrades should be upgraded when
           appropriate prior to terminating the OEM support agreement to avoid
           future issues.
           Many TPMs can provide remedial OS support, and in some cases
           layered application support, to help with troubleshooting, restoring,
           basic functionality and use of tools.

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Best Practices – Remote Monitoring

  Many products within a Data Center can be remotely monitoring on a real-time
  basis for system issues. Remote monitoring can provide a better level of
  service by improving response times and resolving issues earlier before they
  become more serious.

  Consult your TPM and determine whether they have the capability to monitor
  your environment through:

       •   Leveraging the native remote monitoring capabilities already
           provided within a product;

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       •   Utilizing the TPMs proprietary monitoring solutions developed for
           specific platforms.


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    About Park Place Technologies

Park Place Technologies offers customers more than 20 years experience as a profitable
provider of multi-vendor support services for mission-critical data center systems. With
headquarters in Cleveland, Ohio and a North American client service and support center in
Boston, Massachusetts, Park Place supports over 1200 customers at more than 4,500
locations globally.


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   White Paper: Maximize the Value of Data Center Hardware Maintenance


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