Gartner revised its annual IT spending predictions this April. The market intelligence leader predicts a contraction in the data centre market, with a dip of 1.9% in 2019. Digging deeper into the report, lower average selling prices on component parts are seen as a big driver. Whilst this may be bad news for many IT hardware resellers, at Techbuyer we are upbeat about contracting budgets. Maximising budgets is something that our business has been supporting for years so the trend is likely to help our customers.
Data Centre Systems have always been the little brother of the IT spend family. Enterprise software and devices are roughly double and treble the outlay respectively. Both are dwarfed by outlay on IT and Communications Services. However, cost shaving is always useful to any business and smart procurement choices on hardware are an easy way to make this happen. This leaves more resource available for essentials like anti-virus provision, disaster recovery, new applications and systems development.
The industry press has been reporting on an ongoing memory oversupply for some time. With fewer technological advancements than in other components such as CPUs, this has become a commodity item. Third party memory products, often made in the same factory as the branded alternatives, offer identical performance at a fraction of the cost.
More and more of our customers here at Techbuyer are making the most of these cost savings. We are seeing rising sales in products from up and coming brands like Ortial, a high-performance memory manufacturer that offers global warranties, guaranteed compatibility, free technical support and free delivery with a like for like cost saving on the branded alternative. Ortial also provides other items such as SFPs, which Cambridge University network services use throughout their system.
IT managers can shrink data centre costs even further with other creative approaches to component and server procurement. Instead of buying a complete system new from the distribution networks, there are significant savings to be had buying at component level and configuring custom systems to precise requirement.
As a global supplier of new and refurbished equipment, we stock hundreds of thousands of components from a range of brands. This means that we are able to ship large numbers of parts for replacement or upgrades for almost any need. Having this range of service is useful to data centre managers because it allows them to choose the most cost-effective solution. It also gives them the flexibility to upgrade core systems instead of scrapping them and migrating to new hardware.
In addition, we are able to configure machines that are entirely new, refurbished or a hybrid of the two. A good example of this would be a refurbished server chassis with new memory, disks or SSDs. It offers the same performance and warranty as 100% new without the same outlay.
With outstanding service and customer support such as same day shipping, a three-year warranty, technical support and fast replacement of parts, we have worked hard at delivering high quality hardware at a reduced cost. Other sellers of data centre hardware might brace for pain in light of the recent Gartner report. Techbuyer see the development of the existing market trend of Enterprise customers trusting and using refurbished IT equipment in their production environments.