After the manufacturer's warranty, the question often arises of changing a server. This is precisely where the actors of TPM (third-party maintenance) come into play. And in "coopetition" with suppliers of computer equipment. What if your computer hardware lasted longer? A piece that breaks, and it's a bay that can fail. The spare part may be located north of Paris (Aulnay-Sous-Bois), in the largest European spare parts site for computer equipment Everex.
After the manufacturer's warranty, the question often arises of changing a server or a storage instance. Because even if redundancy is an imperative given in information system architectures, changing a machine in production is never a simple thing. And even less when it is no longer under warranty. This is precisely where the actors of TPM (third-party maintenance) come into play.
These players, such as Service Express, Park Place Technologies, or even Curvature, still little known to CIOs, are essential in extending the life of computer equipment, whether it is a server, a storage instance, or still network. “It's an industry that is still quite fragmented, with a few global platforms,” explains Stanislas Pilot, CEO of the Everex group. The history of his company is an example of this consolidation in progress.
Delay investments in new generations of data center productsIn March 2019, Evernex obtain Roer, a group that manages in Brazil, Mexico, and Chile. Latterly, it has just acquired Technogroup, one of the main players in the sector in the DACH region (Germany, Austria, Switzerland) and in Poland. An operation valued at 49 million euros.
TPM is a double-digit growth sector, says the CEO of Everex. Why? Because CIOs are increasingly looking to amortize their IT investments and delay investments in new generations of data center products. At Everex, we ensure that we take care of the equipment that is more than 10 years old.
Above all, these actors play an important role in the event of a supply chain crisis, as may have been the case for suppliers during the Covid-19 period. “We have our own stocks, and it played like a buffer. We lived on this stock and our SLAs were able to be maintained throughout the containment period, ”says the CEO of Everex.
Coopetition with hardware suppliersAn analysis by Gartner (2017) mentions that “customers will switch to TPMs when the warranty expires rather than renewing the OEM support contract due to significant increases in post-warranty OEM prices”. According to the study, “TPM contracts offer customers an average reduction of 60% off list prices for OEM support. However, depending on the type of equipment, location, and product density, Gartner has found that savings from TPM contracts range from 50% to 95% over OEM pricing. ”
Everyone derives 15% of its income from its broker activity (sale of equipment without a support contract). 10% comes from its financing activity for the purchase and resale of equipment. But the bulk of TPM activity, therefore, comes from the support service which covers the equipment beyond the period offered by the equipment manufacturers. “It's when customers have to choose between the 3-year manufacturer warranty extension and our services that they turn to us,” says Stanislas Pilot.
Especially since TPMs then become single points of contact for customers who use equipment from different suppliers (Cisco, F5, Brocade, HP, Fujitsu, Dell, Netapp, or even IBM). The relationship between TPM players and apparatus manufacturers is therefore of the order of competition. These companies can even enter into agreements with suppliers to complete the complementary support offer when a customer has many types of equipment from the same supplier with an extended warranty.
The threat of the cloud?However, public cloud players are stepping up their game on offers requiring powerful infrastructures (read Google Cloud: bare metal in new European regions). Enough to question the future of on-premise equipment in the business.
“What we see in the market is that hybridization is working well. On-premise is growing, despite the public and private cloud, ”however assures Stanislas Pilot. “Of course, we do not work with hyperscalers, which have their own infrastructures and their own support. But French and European cloud players are turning to us for the service. "