Deciding Between Tech Refresh and Maintenance for Infrastructure Hardware

Original Equipment Manufacturers (OEMs) often push for refresh cycles every three to five years, citing reasons ranging from performance limitations to security risks. However, many seasoned CIOs recognize that enterprise-grade equipment—especially when properly maintained—can remain reliable and functional for far longer than the OEM’s preferred timeline. With the rise of cost-effective Third-Party Maintenance (TPM) providers and mounting pressure to optimize both capital expenditures (CapEx) and operational expenditures (OpEx), extending the life of existing infrastructure has become a viable and strategic option.

The Imperative of a Tech Refresh: When New is Indispensable

A technology refresh generally refers to the complete or partial replacement of servers, networking equipment, or enterprise storage solutions. Although it can represent a major capital outlay, certain business and technical scenarios make a refresh not just necessary, but mission-critical.

1. Performance Bottlenecks and Business Disruption

● Servers: When existing servers can no longer handle growing application workloads, expanding virtualization environments, or compute-heavy processes like analytics or machine learning, performance degradation becomes a serious concern. If users experience system slowdowns, application crashes, or latency in high-demand environments, it's a clear sign that hardware may be under strain. Research indicates that aging servers can see performance drops of up to 39%, while application management costs may rise by as much as 40%

● Networking Equipment: Network infrastructure must keep pace with organizational needs. Legacy switches or routers that cannot support gigabit speeds, advanced routing protocols, or modern Quality of Service (QoS) requirements may stall cloud adoption, hybrid work models, or bandwidth-heavy applications such as video conferencing. If your network becomes a chokepoint, a refresh is warranted

● Enterprise Storage: As data volumes grow due to big data, AI/ML initiatives, and media-rich content, older storage systems may fail to meet input/output operations per second (IOPS) or latency requirements. Storage bottlenecks can delay analytics workflows, backup routines, or application responsiveness—jeopardizing productivity

2. End-of-Life (EOL) and End-of-Service-Life (EOSL) Triggers

When OEMs designate equipment as EOL or EOSL, they withdraw technical support, firmware updates, and security patches. This leaves IT environments exposed to:

● Security threats: Unpatched firmware or outdated protocols are prime targets for cyberattacks, particularly ransomware and network intrusions. Data breaches, which can cost millions per incident, become more likely without updated defenses

● Operational inefficiency: Replacing parts becomes difficult and costly. In many cases, OEMs charge premiums or simply don’t offer replacements

● Loss of compatibility: New software applications, cybersecurity tools, or virtualization platforms may not work with outdated firmware or an existing generation of hardware

3. Spiraling Maintenance Costs from OEMs

As infrastructure ages, OEM support contracts often become prohibitively expensive. Post-warranty support for legacy hardware can sometimes exceed the cost of purchasing new systems, making the financial argument for a refresh stronger. For instance, support for certain enterprise storage systems beyond EOSL can exceed $50,000 annually, with diminishing returns

4. Strategic Alignment with Business Growth

Major IT initiatives such as digital transformation, cloud-first strategies, or business expansion typically require more scalable, secure, and agile infrastructure. In such cases, new hardware becomes an enabler of future capabilities—not just a replacement. Businesses aiming to support containerization, AI, real-time analytics, or automation will find older hardware unsuitable

The Maintenance Mandate: Extending the Life of Infrastructure Assets

Contrary to the OEM narrative, not all aging hardware needs immediate replacement. In many cases, extending the hardware’s useful life through maintenance—especially with TPM—delivers cost savings, minimizes disruptions, and supports environmental sustainability goals.

1. When Performance Is Still Sufficient

Servers, switches, and storage arrays are often engineered for durability and can exceed expected lifespans by years. If key performance metrics like CPU utilization, network latency, or disk throughput remain within acceptable thresholds, maintenance makes practical sense. The hardware may no longer be cutting-edge, but if it reliably supports current workloads, it remains a valuable asset.

2. Financial Prudence and Cost Optimization

With pressure mounting on IT departments to "do more with less," deferring CapEx through ongoing maintenance becomes a highly attractive strategy.

● Servers: While operating costs may rise after three to five years, it’s often due to increased software licensing or power consumption—not hardware failures. In many cases, TPM contracts allow companies to continue operating stable servers at a fraction of OEM renewal costs

● Networking and Storage: The cost savings of TPM versus OEM support can be significant—ranging from 40% to 70%. For EOL equipment, TPM becomes almost a necessity, as OEM prices can be artificially inflated to force a refresh

3. Maximizing Return on Investment

By extending hardware life via TPM, companies unlock maximum value from their original investment. This is especially true when the gear still functions well, supports legacy applications, or resides in non-critical environments. For example, lab environments, disaster recovery setups, or branch office deployments often do not need the latest-generation equipment.

4. Stable, Legacy Systems

Industries like manufacturing, healthcare, and logistics often run critical legacy applications that are tightly coupled to specific hardware or software configurations. In these environments, changing hardware introduces risk and cost. Maintenance is the safer and more cost-effective path.

5. Multi-Vendor Hardware Environments

Managing separate contracts and SLAs across multiple OEMs is complex and time-consuming. TPM providers offer a single point of contact for a range of brands (Cisco, Dell, HPE, NetApp, etc.), reducing administrative overhead and increasing operational agility.

6. Sustainability and ESG Objectives

Sustainability is no longer a “nice to have.” Organizations face increasing pressure—from stakeholders and regulators—to reduce e-waste, carbon emissions, and resource usage. Extending the life of infrastructure hardware reduces landfill waste, lowers carbon footprints associated with manufacturing, and aligns IT operations with environmental, social, and governance (ESG) goals.

Strategic Decision-Making Framework: Refresh vs. Maintain

There is no one-size-fits-all answer. A well-informed decision must take into account both business objectives and technical realities. Here’s a quick guide to help with the decision-making process:

1. Performance Monitoring

Track server CPU loads, memory usage, network bandwidth, and storage latency regularly. If hardware consistently runs at or near capacity and performance issues are frequent, a refresh may be needed. If performance remains stable, maintenance is justified.

2. Total Cost of Ownership (TCO) Analysis

Compare the long-term costs of a refresh versus extended maintenance. Include hardware costs, power and cooling, staff time, maintenance contracts (OEM vs. TPM), and any potential revenue losses due to downtime. In many cases, TCO favors maintaining existing infrastructure, especially with TPM.

3. Risk Mitigation

Use risk assessments to determine whether extending hardware life adds unnecessary exposure or if it can be managed effectively. Some of these risks are:

● Security risks of running unpatched equipment

● Operational risks from part shortages or unsupported systems

● Continuity risks in case of unexpected hardware failure

4. Alignment with Business Strategy

Do future projects (e.g., data center modernization, cloud adoption, AI workloads) require capabilities that current hardware lacks? If so, a strategic refresh is warranted. If not, maintaining current systems may be the best approach.

5. Compliance Considerations

Regulated industries (like finance, healthcare, and defense) may require up-to-date systems to meet audit, data protection, and security standards. Hardware that can’t comply with these standards may require replacements, regardless of performance or cost considerations.

6. Internal IT Resources

Legacy hardware often requires manual intervention, familiarity with outdated interfaces, and troubleshooting expertise. If your IT team is better off being deployed on strategic tasks, TPM can provide the expertise and support needed to offload the burden.

Conclusion: Thoughtful Infrastructure Strategy Yields Better Outcomes

IT hardware doesn’t fail simply because the calendar says so. The decision to refresh or maintain infrastructure should be rooted in data, aligned with business goals, and justified by financial logic. OEMs will always promote refresh cycles that serve their revenue goals, but savvy CIOs recognize the broader picture.

With tools like performance monitoring, TCO calculators, and risk assessment frameworks—alongside TPM providers offering cost-effective support—enterprises now have more control than ever over their infrastructure lifecycle. Whether you choose to refresh, maintain, or adopt a hybrid approach, ensure your decision serves the business—not the OEM’s roadmap.

If it ain't broke, don't fix it. Maximize useful life and stretch your dollar.