Case Study

Leading VAR in North America Saves Its Customer $260,000 on Server Support

Case Study

Leading VAR in North America Saves Its Customer $260,000 on Server Support

Case Study

Leading VAR in North America Saves Its Customer $260,000 on Server Support

About the partner

As one of the biggest VARs in North America, this organization is a leading multi-brand provider of IT solutions to customers in the US, the UK, and Canada.

Their customers span multiple industries, including healthcare, business, government, and education.

ChannelWorks first began working with this VAR in 2021 and the relationship has continued to evolve.

As one of the world’s largest manufacturers of professional and consumer electronic devices, the VAR’s customer is a multinational conglomerate corporation headquartered in Asia with operations in multiple countries across the globe.

About the end-user

About the end-user

As one of the world’s largest manufacturers of professional and consumer electronic devices, the VAR’s customer is a multinational conglomerate corporation headquartered in Asia with operations in multiple countries across the globe.

Challenges

The end-user had an estate of servers that had recently gone post-warranty with the manufacturer and were currently unsupported. These servers were globally located, with equipment spread across 30 countries including Argentina, Australia, Chile, China, and Japan.

To extend the warranty on these servers, the OEM quoted a cost of $300,000 for the equipment support and required a recertification of each asset.

A $300,000 price point was just too steep for the customer, so the VAR Account Executive decided to check with ChannelWorks and other TPM providers to see what they might be able to offer for support.

The VAR helped its customer avoid a costly warranty renewal with the manufacturer by switching to ChannelWorks’ third-party support.

ChannelWorks was able to provide a flexible and cost-effective extended warranty option for equipment located all across the globe.

The customer was so impressed by the deal that they are sending the remainder of their post-warranty contracts to the VAR for ChannelWorks’ support.

Solution

Solution

The VAR helped its customer avoid a costly warranty renewal with the manufacturer by switching to ChannelWorks’ third-party support.

ChannelWorks was able to provide a flexible and cost-effective extended warranty option for equipment located all across the globe.

The customer was so impressed by the deal that they are sending the remainder of their post-warranty contracts to the VAR for ChannelWorks’ support.

Benefits

While the OEM quoted $300,000 to extend the warranty of these servers, ChannelWorks was able to offer the same support for $40,000, a savings of over 86%. ChannelWorks helped this VAR save its customer $260,000, which the customer could then repurpose for other priority business initiatives.

Additionally, the VAR Account Manager made 30% in margin, vs. the 5% he would have made selling the OEM support.

Further, ChannelWorks’ maintenance is multivendor, so this VAR can continue to deliver on significant cost savings for its customer’s equipment coming off warranty in the future, regardless of manufacturer.

“Working with the ChannelWorks team was a great experience for us and our customer. I gave them a long list of assets and they were able to put together a quote for numerous locations including international within 24hrs. Once I had the quote we scheduled a call with the customer and walked through the support SLAs and technical questions from their engineers. The customer was very comfortable moving to ChannelWorks’ support and the best part is they saved 80% vs. the OEM. The customer is now working on 2023 & 2024 datacenter equipment that ChannelWorks can support. This should be a great long standing relationship and open up further opportunities.”

Quote

Senior Account Manager, VAR

Quote

Senior Account Manager, VAR

“Working with the ChannelWorks team was a great experience for us and our customer. I gave them a long list of assets and they were able to put together a quote for numerous locations including international within 24hrs. Once I had the quote we scheduled a call with the customer and walked through the support SLAs and technical questions from their engineers. The customer was very comfortable moving to ChannelWorks’ support and the best part is they saved 80% vs. the OEM. The customer is now working on 2023 & 2024 datacenter equipment that ChannelWorks can support. This should be a great long standing relationship and open up further opportunities.”