How Alternative Service Providers
Enhance Cisco SMARTnet® and
Make You Look Brilliant
Optimizing IT costs without sacrificing
security and performance
A White Paper from XS International, Inc.
Executive Summary
Cisco sells 72%* of the IT networking equipment that supports vital government and corporate
services across America and provides most of the maintenance contracts for that same
equipment. Cisco provides robust hardware and software solutions to IT departments around the
world. Its market dominance, however, may not make it the best solution for every entity.
In fact, Alternative IT service providers (often referred to as 3rd party) can provide more robust
support solutions including, OEM SMARTnet® support blended with Alternative SMARTnet®
support, at up to 50% less cost than Cisco.
Many IT management professionals are finding service providers that supply product and support
contracts that more accurately fit their needs, and are seeing significant cost savings in the
process.
*Oppenheimer & Co. Estimates for 2011
You Will Learn
1.
How to optimize your Cisco support costs
2.
Ways to reduce costs 50% or more on certain maintenance situations
3.
And, how to select the service providers that works best for you, no matter
what your situation.
© 2011 XS INTERNATIONAL, INC. | 1.800.256.6133 | WWW.XSNET.COM
Contents
Fast, effective, and cost-effective: The pros of working
with Alternative Service Providers.........................................................................4
Complete Support...................................................................................................................4
Quality Guarantees.................................................................................................................5
Lower Costs............................................................................................................................5
Independent Verification.........................................................................................................6
Selecting the right solution for your organization....................................7
Check with an independent market analyst............................................................................7
Don’t accept the status quo...................................................................................................7
Get personalized service........................................................................................................8
So What Can You Do?...............................................................................................9
© 2011 XS INTERNATIONAL, INC. | 1.800.256.6133 | WWW.XSNET.COM
Fast, effective, and cost-effective: The pros of
working with Alternative Service Providers
Alternative Service providers in Cisco’s Market
It is a well-known fact that Cisco dominates the IT networking maintenance market with nearly
72% market share of IT networking hardware and most of the maintenance contracts. It should
be no surprise why this is the case. Cisco is a well-established corporation that manufacturers the
equipment and thus has the wherewithal to maintain it. However, Cisco is not always the most ideal
solution. Alternative service providers can be an excellent choice for a business that needs Cisco
product support without the SMARTnet® price. Choosing an Alternative service provider gives
business owners opportunities that they would not get by using Cisco. For example, Alternative
service providers have better flexibility with their contracts, can offer customized payment solutions,
service and support End of Life (EOL) equipment, and add and remove parts throughout the year.
There are many important aspects of using an Alternative service provider that will be discussed later
in this paper.
Complete Support
Many people believe that only Cisco can provide Cisco product support, it simply is not true. While it
is true that Cisco is the only company that can legally provide software updates and upgrades, after
an out of court settlement with Multiven in 2010, Cisco declared that customers do not have to buy
Cisco SMARTnet in order to obtain Cisco IOS updates and software upgrade.
Alternative service providers facilitate the direct transfer of Cisco IOS updates and software from
Cisco to the end-user, are often faster to respond with Certified Technicians, maintain a wider range
of IT equipment under a single agreement, and often have lower overhead in order to provide
complete support for IT issues at a lower cost.
Certain service providers can also supply each of the following vital
components within a single contract:
•Complete OEM Cisco SMARTnet® support
•Hardware and software support beyond Cisco’s limiting EOL/EOS
•Contract flexibilities, such as co-terminus adds and deletes in a prorated manner
•Coverage for Cisco data, voice & unified communications, security and SAN hardware and
software products
•Support on HP, IBM, Oracle/SUN, and Dell “branded” Cisco products
•For Federal Agencies, a GSA Schedule in which to order Alternative to SMARTnet® Maintenance
© 2011 XS INTERNATIONAL, INC. | 1.800.256.6133 | WWW.XSNET.COM
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In addition to these vital components, some Alternative service providers can also blend OEM
SMARTnet® with an Alternative to SMARTnet® under the same contract. OEM SMARTnet® may
be a smarter choice in the logistical case where same day parts are required in a remote area or
country and there is not enough quantities of the same Cisco models to support this SLA in the
area. Alternative SMARTnet® is ideal when equipment has been installed for a year or two and
only requires IOS updates or if Cisco has declared the model EOL and no longer supports the
hardware. Many customers do not realize that Cisco still provides OS support for 3-5 years after
they discontinue service on a typical model.
Quality Guarantees
Since Alternative service providers can include a wide range of service in their contracts, they can
also provide service guarantees that rival and exceed Cisco quality standards. This is significant
because many organizations seek Alternatives to Cisco based on customer service differences.
As an example, XSi provides the following guarantees to organizations:
•Authorized Cisco partnership via Agent and Teaming Agreements
•U.S. based Tier 1 to Tier 3 Technical Assistance
•Tier 4 escalation to the OEM, if necessary, and included in the Alternative Agreement
•Over 325 trained and certified Cisco engineers
•Live, multilingual technicians available via phone or remote login, 24/7
•Technicians dispatched and on site within 2 hours, where geography allows
•Facilitates all data/voice software and firmware updates, enhancements, and upgrades
Lower Costs
The ability to support these guarantees depends on the quality of services and low operational
costs. Alternative technicians are trained to handle more hardware and software than the
average OEM technician, so problems are more quickly identified and solved. Compared to OEM
solutions, with large bureaucracies and corporate structures that must be navigated at additional
cost to the consumer, Alternative service providers are small and quick to act.
Joe Marion, of the Association of Service and Computer Dealers International (ASCDI) is
adamant that Alternative service providers often support Cisco hardware and provide complete
support for as much as 50% less than OEM services, depending on the hardware or service
discussed. This is in part due to the fact that Alternative service providers often support hardware
that OEMs no longer support. ASCDI monitors this information on behalf of the computer service
and hardware dealer market, providing unbiased information and council to large organizations
looking for solutions to vital IT problems.
© 2011 XS INTERNATIONAL, INC. | 1.800.256.6133 | WWW.XSNET.COM
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Independent Verification
The claims made by Alternative support service providers are more than marketing spin or
advertising copy. They’re verifiable benefits backed by the research efforts of reliable and
unbiased third parties.
XSi, for instance, currently has 60,000 Alternative to Cisco SMARTnet® SKUs available under
its GSA schedule. 30 Federal agencies have used XSi to replace Cisco SMARTnet® contracts.
These agencies that are continuing to renew XSi’s SMARTnet® alternative, are a testament to its
effectiveness and its many operational improvements.
Below is a brief list of Federal Government and corporate organizations that have teamed with
an Alternative service provider for 24x7 tech support, advance replacements, and more for their
Cisco hardware and software.
Government Organizations
Department of Justice
Corporate Organizations
Nissan
Anti Trust Division
Pepsi America
U.S. Attorney’s Office
Dr. Pepper
DISA
Verizon
USDA
iQor
US Army (U.S. & Afghanistan)
Tradition Enterprise
Department of the Air Force
Global Keratin
NOAA
EDS
Defense Microelectronics Activity
Exide
Naval Airwarefare Center
COTF Navy Support
Argonne National Laboratory
Armed Forces Institute of Pathology
SAIC
NATO
© 2011 XS INTERNATIONAL, INC. | 1.800.256.6133 | WWW.XSNET.COM
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Selecting the right solution for your organization
Of course, with healthy competition in a market, organizations have the opportunity to select
their services provider from a variety of Alternative service providers vying for their business. But
selecting that service providers can be daunting for any organization that is not used to picking
and choosing the services that are right for their situation. In order to help you select a service
providers that supports your organizational needs, be sure to consider the following tips:
•Check with an independent analyst group before buying
•Focus on personalized service that fits your situation
•Check performance history and references
•Ask the service provider to set up a test support call
•And secure verifiable and enforceable guarantees whenever possible
Check with an independent market analyst
After interviewing service providers, but before signing any confirmation documentation, be sure
to check with a group like ASCDI. ASCDI has been tracking computer service and hardware
service providers for 30 years. They keep track of companies throughout their entire life cycle,
monitoring:
•Executive and staff backgrounds
•Business practices
•Performance in the market
Why is this so important? ASCDI tracks claims of counterfeit goods and services. They can
provide information about substantiated claims, and protect your organization from receiving
counterfeit goods.
But not all claims of counterfeiting are accurate. There are instances in which manufacturers
and other services service providers accuse others of dealing in counterfeit goods, in order to
pressure them out of the market. In order to help innocent victims maintain their ability to compete
in the market, and to ensure a properly competitive market place for buyers, ASCDI fairly
evaluates claims and reports on the situations.
Don’t accept the status quo
Maximizing the value of a contract means questioning the status quo. But replacing all that
hardware comes at a significant cost that extends beyond the organization. Consider that
dispossessed hardware carries:
© 2011 XS INTERNATIONAL, INC. | 1.800.256.6133 | WWW.XSNET.COM
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•Labor and training costs to train staff and implement a new hardware
•Labor and other costs associated with downtime with the deinstallation of old hardware and
installation of the new hardware
•Upfront capital investments to buy new equipment and support services
•Environmental costs in the form of recycling or other forms of proper disposal
Note that legacy equipment is often still adequate for meeting or exceeding organizational
needs. Sometimes minor maintenance, such as a refurbishment or cleaning, may be in order.
But the truth is that older equipment can continue to perform for organizations at a fraction of
replacement costs.
Get personalized service
It is important to look for a contract that blends and balances various remote and on-site support
services in a way that fits your organization. For example, some organizations need more phone
and online support than others. Some organizations need more on site support. Whatever the
needs of your organization, be sure that your contract guarantees access to support when and
how you need it.
But organizations should also be wary not to limit their support options. For example, OEM
support services, in some cases, are preferable, even necessary. Progressive organizations
are working with alternative service provider that provide cost effective 3rd party services, but
can also provide OEM support when the expense is warranted. The most effective contracts are
similar to those offered by companies like XSi, which blends cost-effective solutions and OEM
solutions into a single value-driven agreement.
After devising a contract that meets organizational needs, make sure you
receive guarantees for service and support in writing. Be sure to get:
•Help desk, remote service, and on site availability schedules
•A guarantee for support availability, such as hours or sessions per month
•Clear Standard Operating Procedures that define when and how support issues will be
escalated
•Written definitions of vital service metrics such as network up time and performance levels
© 2011 XS INTERNATIONAL, INC. | 1.800.256.6133 | WWW.XSNET.COM
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So What Can You Do?
If your organization is looking for an alternative to Cisco SMARTnet® service contracts finding an
alternative provider is easier than it may first seem. Cisco may dominate the market, but there are
still Alternative service providers ready to provide the goods and services organizations need to
cut costs without sacrificing on safety or quality.
If you are ready to look for a service provider that can fulfill
your needs for less cost today, please contact:
Harry Carey
Todd Bone
VP Service Solutions
CEO
XS International, Inc.
XS International, Inc.
1005 Alderman Drive,
1005 Alderman Drive,
Suite 212
Suite 212
Alpharetta, GA 30005-8859
Alpharetta, GA 30005-8859
+1 (678) 537-4106
+1 (678) 537-4108
About XS International
XS International is a IT services company that
specializes in Cross-Platform OEM and Alternative
IT Maintenance, Data Center Consolidation, Data
Center Relocation, IT Asset Disposition and IT
Hardware and Software Sales. XSi’s background
started 20 years ago in Real-time Simulation and High
Performance Computers. XSi helps Federal Agencies,
Contractors, Universities and the Commercial Sector
stretch their IT budgets without compromising quality
or responsiveness. XSi maintains offices in Atlanta,
Washington D.C., Oklahoma City, London, Paris,
Berlin, Sao Paulo and Buenos Aires.
XS International, Inc.
1005 Alderman Drive
Suite 212
Alpharetta, GA 30005
[t] 1.770.740.0040
[tf ] 1.800.256.6133
[f ] 1.770.740.0121
www.xsnet.com
© 2011 XS INTERNATIONAL, INC. | 1.800.256.6133 | WWW.XSNET.COM
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