In today’s environment, technology is everywhere — from tablets and smartphones to medical and manufacturing equipment. That’s created an imperative for companies to carefully track their endpoint devices to ensure they are updated with the most recent software. It necessitates working with an experienced partner that specializes in providing online asset management capabilities and facilitating a successful refresh strategy.
“Companies with many employees are managing a lot of endpoint devices that come in, go out and possibly change hands as frequently as each month,” says Jim Altman, Middle Market Pennsylvania Regional Executive at Huntington Bank. “When software licenses and device warranties end, a company must quickly and efficiently retrieve and replace or update those devices and software applications. That process is made easier through the implementation of a tracking system.”
Smart Business spoke with Altman about how companies can manage their technology assets throughout their lifespan.
What should businesses take into account from the day hardware is bought or leased?
A good first step is to estimate, as accurately as possible, when that technology will be due for an upgrade — what is the useful life of that equipment and when will it need an upgrade? If, for example, a device is on a depreciation schedule of five years, but the actual useful life of it is only two, the company won’t be ready to replace the device because it’s on the books for another three years.
Also, consider the replacement process strategy. Have a plan to swap out the assets, which are proliferating exponentially — consider that, on average, each employee may have three active devices at one time. With so many devices to update and replace, it becomes easy for chaos to be created.
Given all of this, don’t underestimate the value of leasing technology assets to manage the obsolescence factor and avoid having too much capital tied up in equipment.
What are the possibilities for streamlining and establishing efficiencies?
Companies no longer maintain devices that originate from one manufacturer and are purchased at one time. Tracking them requires a platform that enables a company to keep an active catalog of all devices, who has them and where they are in their lifecycle to more easily identify problems with certain model numbers, so users can be called in to have those issues addressed. It also allows a company to incrementally replace devices that have aged-out of their useful life, rather than all at once.
While tracking hardware lifecycles is critical, staying on top of the software maintenance schedules of those assets is equally as important. Have a mechanism to track versions throughout the network to maintain the most recent security updates, the newest user experience and compatibility as people work together and share information.
Companies of any size with any number of company-owned devices should track their assets. While a company with 20 to 30 assets doesn’t need a robust platform, as the device count rises and organizations spread out through remote working arrangements and travel, the need for an advanced solution increases.
Generally, what should companies expect in terms of device lifecycle?
Obsolescence must be carefully estimated, but for a quick reference, keep in mind that smartphones have a useful life of two years, laptops up to four, desktop computers up to five, storage devices and servers will last for four years before needing an upgrade, mainframes can go five years, and network phones and switches can last as long as seven years. Of course, this is just a generalized guide. Companies should review their hardware to determine a more accurate sense of the replacement schedule.
The importance of monitoring and tracking devices and software can’t be overstated. There are cases in which a device is still active beyond its warranty or maintenance contract, which can create costs that are hidden within an organization. Think about where the technology is going to be, not where it is. Accurately depreciating devices can be a major cost saver both in terms of replacement and maintenance costs, and productivity.
Insights Banking & Finance is brought to you by Huntington Bank