The Risk of Aging Assets & Operating Environments

April 7, 2020

By now, you’ve likely heard your clients express that their assets “aren’t THAT old”, or “it’s only been a few years” when referring to a piece of machinery that is almost eight years old. While this can add resistance to your service process and workflow, the truth is it shouldn’t be difficult to let clients know when it’s time to upgrade their machines.

This struggle doesn’t just affect your bottom line and level of service – it’s inadvertently a time-suck and it means that you are spending billable hours communicating and convincing. That is definitely risky business for MSPs who could be adding revenue and minimizing risk for environments that you normally couldn’t convince to spend money on replacement gear.

Who is at risk, and what are the risks?

Your clients are at risk of having their performance and efficiency compromised as a result of having assets that are degrading in their performance. Based on a recent Microsoft study, a PC beyond 4 years of age:

  • Runs slower and is 2.7x more likely to require maintenance
  • Costs a user approximately 112 hours of productivity
  • Total cost of owning a 4+ year old PC equals approx. $2,636 USD per user per asset
  • Annual Opportunity Cost of Time Waste $3,784 USD per employee
  • Total Annual Cost of Slow Computer – $6,420 USD per employee

To put it in perspective, it’s actually cheaper to replace two or more PCs than keeping an old PC for more than 4 years.

Speaking of replacement, the risk for MSPs is losing multiple avenues of revenue opportunity by opting to not be engaging in ALM conversations with their clients. This is lost opportunity as a result of negligence – it’s more about stopping the bleeding in a simple, organized way as opposed to thinking creatively about how to stretch revenue with methods that frankly require a lot more effort.

To put it simply – with proper reporting, this should be easy. Knowing the maturity of your assets and engaging in diagnostic discussions with your clients is not a difficult task, nor is it a time-intensive one.

Okay, sounds simple enough. How do I start?

Asset replacement isn’t an action that concerns the procurement and disposal stages in asset lifecycle management. It is the process of using information obtained from tracking assets throughout their lifecycle to determine the most cost effective time to replace client assets.

This should all be sounding familiar – it’s not a secret that aged IT networks and operating environments are at risk, fail more frequently, and increase down time. They also are not cheap to replace and maintain. The primary function of asset lifecycle management is to maximize the value of an IT asset, and replace it at just the right time.

What are real MSPs saying about asset lifecycle management?

 

– Kait Huziak

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