Since I handle renewals for all hardware and software support at Core Vision IT Solutions, I’m often asked why an organization should renew the hardware warranty on their server. No matter the brand (e.g. HPE, Dell, IBM, etc.) the reason to renew is the same.
One of my co-workers compared it to paying for car insurance. You pay for car insurance every year hoping that nothing happens, but you have it because it would be more expensive if you had an accident and no insurance at all.
It’s a similar principle with having hardware support on your server. If you don’t have it and something fails, it will cost you a lot more money and your company may also face significant downtime.
Initial Server Warranty
Typically, when you first purchase a server it comes with a 3-year warranty that usually covers the parts and labor to fix anything that goes wrong. At the end of 3 years, the vendor or the IT company that you are working with will send you a renewal quote to purchase an additional year of support.
Even with server management from an IT partner, servers have a limited lifecycle. Most manufacturers will allow you to renew the warranty twice for up to 5 years of total protection, then the servers will be beyond their serviceable life and should be considered for replacement.
What happens if the server warranty isn’t renewed?
We recommend to all our clients that they renew the manufacturer’s hardware support on their servers to reduce downtime due to failures, even with server management from us. It is common for parts to go bad on servers and we see this happen usually at the 4-5-year mark. The parts we usually see go bad include hard drives, power supplies, fans, and other components on the motherboard of the server.
If you have the hardware warranty and a part goes bad on your server, a technician from the vendor would come on-site, provide parts from their part center (typically within 24 hours), and make the repair. With no support, your IT company would have to troubleshoot to figure out the issue, order the replacement parts from distribution (typically 48-72 hours with shipping), then make the repair once the parts are received. This is all assuming that there is no data lost which would result in even more downtime.
Can your business afford to be down for 48 hours or more?
For your business to survive you need your servers and that is why we recommend that all our customers purchase the hardware renewal every year. It’s worth the peace of mind to keep your business up and running.
Why isn’t server hardware covered by the managed service provider?
Another question that we get asked by customers is why they need to renew the hardware warranty when we manage their servers for them. That’s a great question because while it seems like a similar service, they’re really apples vs. oranges.
The first thing to know is that the hardware warranty is provided directly by the manufacturer and not through your IT services company. The intent of the manufacturer is to cover the hardware parts and usually the labor to fix any failures that occur – back to the insurance analogy.
Meanwhile, the server management by your IT services company typically provides.
● Monitoring of the hardware and software on the server
● Updates and patches to the Windows operating system
● User support for password issues, file sharing, printer issues, etc.
● Anti-virus management, support and remediation
● User accounts, system policies, and general system security
● Other system administration and management tasks
So, should you renew your hardware warranty?
While that’s a business decision you will have to make, we almost always recommend that you renew your hardware warranty based on the risks and potential losses you might face in the event of a failure.
If you’re interested in understanding more and reviewing the pro’s and con’s, just let us know and we’ll be happy to review your specific situation.