Is it time again to purchase a new server to update your systems? A new server is a huge investment that typically requires a long-term commitment. Make sure you save as much as possible over the life of your contract and don't get caught paying too much. While you may be a pro at 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 translate into receiving the best price.
It is a common misconception that vendors 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 quoting server offerings. This is another good reason to never take the first deal you see, just because 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 support without you knowing.
New server contracts include a tremendous amount of information about your services. It is not uncommon for a vendor to include premium support as part of the deal, and forget 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 translate into receiving the best price.
It is a common misconception that vendors 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 quoting server offerings. This is another good reason to never take the first deal you see, just because 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 support without you knowing.
New server contracts include a tremendous amount of information about your services. It is not uncommon for a vendor to include premium support as part of the deal, and forget 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 management solution service consulting
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