By John Mark V. Tuazon
Computerworld Philippines
November 18, 2009

ALBAY, BICOL - Investing in PC refresh every three years, rather than waiting for the hardware’s end-life, is optimal for most firms to get the most value out of their investment, an executive from chip innovator Intel Technology Philippines urged Friday.

Speaking at the Synergy 2009 Forum jointly organized by Intel and HP in Cagraray Island, Albay, Bicol, Ricky Banaag, Intel Philippines country manager, said three years is the ideal time frame for a refresh strategy because most warranties phase out after that designated period.

“Most devices are already out of warranty after the third year, driving support costs up and heightening operational costs in the process,” Banaag explained. Among many support cost drivers due to a lag in the refresh cycle include out-of-warranty repair, deployment of new applications, service packs, updates and patches, and hardware and software malfunctions.

Banaag said most companies are missing out on potential benefits of newly-developed computing technologies if they refuse to upgrade their hardware systems after the optimal timeframe. “New PCs can be a lot more secure, protecting companies from security incidents that add to the risk factor of firms,” he stressed.

According to independent data from Wipro Consulting shared by Banaag during the forum, security risks usually increase by the fourth year of the product life cycle, escalating to as much as 87% by the fifth year.

Innovations such as Intel’s vPro technology, Banaag shared, shield PC’s from potential risks brought by the increasing number of threats each year. “vPro’s inherent proactive security, embedded manageability and energy efficiency will help the computing environment more secure,” he noted.

More importantly, Banaag emphasized, refreshed PCs help firms save costs by delivering business functions at a faster and more efficient rate. “Companies can save as much as $3 million and reduce operational costs by 50% if they make the decision to upgrade on their third year versus the fourth year,” he said.

The same data from Wipro Consulting reveal that companies are sticking to their normal refresh rates, or are speeding it up, even in the midst of the global economic downturn. At least 60% of companies polled—composed of 106 firms in North America & Europe—said they have not altered their refresh policies, while a small yet significant 8% said they are speeding up their refresh rates.

“Companies are taking advantage of new technologies that deliver better TCO, that’s why they are investing on a refresh despite the downturn,” Banaag suggested. “Tech refresh offers a viable scenario for sustaining growth during the crisis.”

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