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Infrastructure & Operations leaders are facing increasing pressure to optimize their IT to maximize business performance. However, the rise of cyber-threats, hybrid infrastructure and global disruptions means companies are spending more on maintenance and support, with Gartner predicting IT spending will reach $4.5 trillion in 20221; the highest year-on-year jump in over a decade.
To help companies manage their developing infrastructure, Cisco’s Smart Net Total Care offers technical support and maintenance to minimize network issues. However, Gartner has provided insights into the cost-efficiency of their discount rates in a recent report: ‘How to Achieve the Deepest Discounts on Cisco Smart Net and Optimize Existing Spend’.
In the research, Gartner mentions that “I&O leaders often do not know what their Smart Net discount is because they accept quotes from authorized channel partners (value-added resellers [VARs]) that are not demonstrating price transparency by not sharing Smart Net SKUs, list prices, net prices and discount percent,” making it difficult for companies to know if they are obtaining the best deal. The report further highlights that discrepancies between contract lengths and appropriate price reductions are adding to unnecessary spend.
Companies seeking to reduce their spending will find a series of recommendations in the report that can help them cut back. This includes gaining greater clarity on discounts by demanding a complete cost breakdown, including all the elements that justify the proposed Smart Net discount rate. Additionally, Gartner recommends only accepting quotes from authorized channel partners that offer Smart Net SKUs, net prices, list prices, and discounts line by line.
Gartner advises I&O leaders to maximize the value of their contracts by ensuring the contract length aligns with the offered discount rates. Companies can increase their own contract value and negotiating privileges by working with a single value-added seller (VAR), rather than splitting costs across multiple VARs. Moreover, consolidating spending with a single VAR that receives larger discounts from Cisco also helps achieve the deepest price reductions.
Another cost-cutting suggestion from Gartner is partnering with Third-Party Maintenance (TPM), which can serve as an alternative to Smart Net with its own infrastructure management services. Gartner noted that companies who opted to work with TPM saved between 20% to 60% over Smart Net.
As a leading provider of the service, Evernex offers cost-effective independent IT maintenance across network, server, storage and library equipment to provide business continuity for its customers. Other benefits include the unification of multi-vendor management, through a single point of contact, customizable SLAs from 4 hours and truly global coverage provided by technical experts in 165+ countries.
1 Source: Gartner, How to Achieve the Deepest Discounts on Cisco Smart Net and Optimize Existing Spend, Mike Toussaint, Ted Corbett, Christine Tenneson, 26 October 2021
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