Kharmela Mindanao

By: Kharmela Mindanao on June 12th, 2024

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Why Do MSPs Replace Working Equipment? (6 Top Reasons)

Managed IT Services

Are you shifting to a new managed IT service provider (MSP), but they’re recommending equipment replacement even though the current ones are still working?

How do you determine if replacement suggestions are just a sales pitch - or actual advice?

As an MSP ourselves, Intelligent Technical Solutions (ITS) understands how hard it is to put your trust in a new third-party organization. We’ve had our fair share of recommendations questioned and aimed for 100% transparency behind every client proposal.

So, in this article, we invited Sean Harris (ITS’ Senior VP for Cybersecurity) to walk us through the six key reasons MSPs replace equipment.

By the end of this blog, you’ll understand why MSPs recommend equipment replacement and decide whether it’s worth investing company resources in.   

1. Cybersecurity Management 

cybersecurity managementEach MSP has its own cybersecurity systems, and replacing equipment ensures these systems run smoothly.

For example, they have certain EDR programs that aren’t compatible with what you have. If they don’t recommend the replacement, you'll end up with suboptimal services.

Plus, older equipment is more susceptible to security vulnerabilities due to outdated firmware, lack of support, and a history of discovered cybersecurity vulnerabilities.

By replacing equipment, MSPs can better defend their clients against emerging threats. Modern equipment also has improved security features, encryption protocols, and compatibility with the latest security software. 

2. Technology Upgrades 

technology upgradesSince technology is developing faster than ever, companies need to keep up. Newer and more efficient hardware and software are introduced at an astonishing pace.

Outdated equipment quickly becomes a bottleneck, limiting the potential of the entire IT infrastructure. Regular replacement ensures clients benefit from enhanced performance, improved efficiency, and the ability to leverage cutting-edge features.

But often, it’s not just about upgrading to the newest tech - but getting the right kind. 

“Many times, when people come to us to see if we could be a good fit, they already have an MSP,” Harris reveals. “That managed service provider or in-house IT isn’t working out for them.”

And when your new team reviews your technology, they realize your firewall, workstations, or server isn’t compatible with your current needs, then come the conversations about replacing equipment. 

3. Performance Improvements 

performance improvementsAnother reason MSPs recommend getting new equipment is for performance improvement.

As things get older, they [the equipment] have more problems, then that creates more reactive tickets for us and more downtime for them,” Harris explains.

Aging equipment is more prone to failures and malfunctions, resulting in frequent downtime. Plus, if you experience downtime, it can lead to massive financial losses, not to mention the reputational damage that accompanies service interruptions.

By replacing equipment before it reaches its breaking point, MSPs can ensure a more reliable and stable IT environment for their clients.  

4. IT Lifecycle Management 

IT lifecycle managementEvery piece of equipment has a finite lifespan. Beyond that timeline, maintenance costs escalate, and efficiency declines.   

“In a perfect world, all hardware would be covered under warranty by the manufacturer, and when a warranty no longer covers it, it’s replaced,” Harris said. 

This would mean replacing:

  • Workstations/laptops every three years 
  • Servers every five years 
  • Routers every three to four years 

But it’s not a perfect world, and Harris has seen many businesses use equipment until the absolute point of failure - without considering the Total Cost of Ownership (TCO). TCO is a critical metric as it doesn’t just include the initial purchase cost but also factors in ongoing maintenance, energy consumption, and potential downtime costs. 

These situations fail to consider that regularly replacing equipment near the end of its lifecycle can often be more cost effective than attempting to prolong its lifespan. 

5. Scalability and Futureproofing 

business scalabilityBusinesses are rarely stagnant; they grow, evolve, and adapt to changing market dynamics. MSPs need to account for this by providing scalable IT solutions

Replacing equipment is part of ensuring your business’s IT current and future needs are easily met. Outdated equipment might not be equipped to handle the increased demands of a growing business.

Regularly upgrading equipment allows MSPs to align their clients' infrastructure with their expansion plans, ensuring that technology remains an enabler rather than a hindrance. 

6. Regulatory Compliance and Industry Standards 

regulatory compliance and industry standardsLastly, many industries, such as healthcare and finance, are often subject to strict regulatory requirements and standards that mandate the use of up-to-date technology.

MSPs must stay informed about these regulations and ensure their clients' equipment meets the necessary compliance criteria.

Regular equipment replacement helps MSPs avoid legal complications, fines, and reputational damage from non-compliance.

RELATED: What Happens If My Company Is Out of Compliance? [VIDEO] 

Ready to Partner with a New MSP? 

IT professionals in a server room, evaluating equipment upgrades as part of an MSPs regular replacement strategy

Embracing technological advancement and prioritizing the benefits of security, reliability, scalability, and compliance will help you get the true value MSPs provide. 

So, with that said, is shifting to a new MSP – despite the recommended equipment replacements – the right move?

Here at ITS, we know only you can answer that question. Take a look at these resources to help you evaluate an MSP: 

If you’d like to see whether ITS could be the right partner for you, talk to one of our consultants by scheduling a meeting or clicking the image below: 

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