Business leaders know that maintaining up-to-date hardware is crucial for the smooth operation of any business—but it's always a budgetary struggle! As a technical partner for over 100 organizations, we've seen both sides of this issue. On the whole, organizations that decide to upgrade servers, firewalls, and other critical hardware components when they are out of warranty see long- and short-term improvements in security, efficiency, and reliability across their organization. Let’s explore how long warranties typically last, what to look for in a warranty, and the key reasons to upgrade your hardware.
Warranty Tips From The Professionals
Koert, Cofounder of Kosh Solutions
When purchasing multiyear warranties, it is typically cheaper than buying yearly warranties. For example, you can often get a 3-year warranty for the same price as two 1-year warranties.
Ideally, when purchasing hardware, it’s better to get something that comes with a 3-year or longer base warranty. A "base" warranty is included with the hardware and is not an add-on. Manufacturers stand behind better equipment with longer base warranties. Equipment of lesser quality usually has a 1-year base warranty, and adding a 2-year warranty to a 1-year base warranty workstation does not improve the hardware.
Davida, Cofounder of FTT Networks
There are usually two types of warranties: base manufacturer warranties, which are typically 30-90 days or limited lifetime (depending on the manufacturer) and often include some type of return-to-factory option and basic patch entitlement. We typically don’t recommend these for businesses.
Extended manufacturer warranties, which we do recommend, provide enhanced coverage and SLAs for things like on-site tech support, guaranteed next-day or same-day replacement, and entitlement for patches, bug fixes, and sometimes version upgrades.
For critical network gear, we always recommend same-day replacement (if available due to location). If same-day replacement is not possible, then next-day replacement is the next best option. If the equipment is truly critical, an H.A. (High Availability) environment is recommended to ensure there is no downtime.
When a warranty expires, the customer is at a disadvantage because we can’t get replacement units or update the software. This doesn’t mean the hardware needs to be replaced immediately; only when it goes end of support with the manufacturer does it need to be replaced. However, we strongly advise customers to not wait until the last minute to replace EoL (End of Life) gear. Ideally, performing the replacement 6-12 months before the EoL date is best to avoid any rush or panic with failing parts. The longer the customer waits, the higher the risk.
Understanding Hardware Warranties
Most hardware warranties for servers, firewalls, and other critical IT infrastructure components typically last between 3 to 5 years. These warranties generally cover repairs, replacements, and sometimes on-site support to address hardware failures or defects. When selecting a warranty, it is important to consider:
Coverage Duration: Ensure the warranty period aligns with your expected usage timeline.
Support Services: Look for warranties that offer comprehensive support, including on-site services and quick turnaround times for repairs.
Replacement Policies: Understand the terms for hardware replacements, whether they are like-for-like or upgrades.
Cost: Evaluate the cost of extending warranties versus investing in new hardware.
This last point is one that we bring up often. Many times the cost of extending the warranty is not justifiable when compared to the cost of simply investing in new hardware.
Timeline of Hardware Life Stage
Purchase and Warranty: Most hardware comes with a warranty lasting 3-5 years, covering repairs and replacements.
Post-Warranty: Once the warranty expires, the risk of failures increases, and maintenance costs can rise.
End of Support: Manufacturers often end support a few years after the warranty expires, meaning no more updates or patches.
End of Life (EOL): Eventually, hardware reaches EOL, becoming obsolete and potentially insecure.
Do I Need to Replace My Hardware at the End of Warranty?
Just because some hardware is out of warranty, what's the big deal? Out-of-warranty hardware can pose several risks and challenges. Firstly, the likelihood of hardware failure increases as it ages, leading to potential downtime and costly repairs. Without a warranty, the expenses for fixing or replacing faulty components fall entirely on your business. Additionally, outdated hardware may not support new software updates or security patches, leaving your systems vulnerable to cyber threats. Lastly, older hardware often lacks the efficiency and performance of newer models, which can hinder productivity and slow down business operations.
Key Reasons to Upgrade Out-of-Warranty Hardware
Enhanced Security: Security threats evolve rapidly, and outdated hardware can become a significant vulnerability. Modern servers and firewalls come with updated security features, such as advanced encryption, intrusion detection systems, and better threat management capabilities. Upgrading ensures that your business is protected against the latest security threats.
Improved Performance and Efficiency: Newer hardware typically offers better performance with faster processors, more memory, and improved energy efficiency. Upgrading your servers and other hardware can lead to smoother operations, reduced downtime, and the ability to handle more demanding applications and workloads. This is particularly true in this transition to the strenuous demands of AI processes.
Increased Reliability and Uptime: Hardware failures can lead to significant downtime and loss of productivity. Out-of-warranty equipment is more likely to fail, and repairs can be costly and time-consuming. Upgrading to new hardware reduces the risk of unexpected failures and ensures higher uptime and reliability for your critical business operations.
Compatibility with New Software: As software evolves, it often requires more powerful hardware to run efficiently. Older hardware might struggle to support the latest software updates and applications, leading to performance issues and compatibility problems. Upgrading ensures that your infrastructure is capable of running the latest software and taking advantage of new features.
Cost Savings in the Long Run: While upgrading hardware involves an initial investment, it can lead to significant cost savings in the long term. Newer equipment often comes with better warranties, lower maintenance costs, and improved energy efficiency. Additionally, the reduced risk of downtime and data breaches can save your business from potential financial losses.
Many vendors or Managed Services Providers like Kosh Solutions offer Hardware as a Service (HaaS), which allows an organization to rent the hardware instead of buying it outright. These agreements usually include maintenance service, replacement options, and regular upgrades. This path eliminates the cost of purchasing and smooths out the price of new hardware into a predictable monthly fee.
Making the Decision to Upgrade
When deciding whether to upgrade, consider conducting a thorough assessment of your current hardware:
Evaluate Performance: Monitor the performance of your existing hardware to identify any bottlenecks or frequent issues.
Assess Security Risks: Conduct a security audit to determine if your current hardware meets the latest security standards. Kosh offers a free Cybersecurity Checklist.
Calculate Costs: Compare the costs of maintaining out-of-warranty equipment with the investment required for new hardware.
In conclusion, upgrading servers, firewalls, and other hardware when they are out of warranty is a critical step to ensure the security, efficiency, and reliability of your IT infrastructure. By staying proactive and investing in new hardware, your business can maintain a competitive edge and avoid the pitfalls associated with outdated technology.
As an AI forward organization, Kosh is proud to say this article was created in collaboration with AI. Read more about creating AI positive work culture.
 Disclaimer
The information contained in this communication is intended for limited use for informational purposes only. It is not considered professional advice, and instead, is general information that may or may not apply to specific situations. Each case is unique and should be evaluated on its own by a professional qualified to provide advice specifically intended to protect your individual situation. Kosh is not liable for improper use of this information.
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