How to avoid paying for back-dated maintenance charges by using a TPM

4 minute read

Avoid Backlog Pay (Backdated Maintenance) with Third Party Support.

Do you even know what Backlog Pay is – let alone how to avoid it?

Data Centre managers will be familiar with most of the fees associated with hardware maintenance. However, they may be unfamiliar with backlog pay, also referred to as backdated maintenance. This underhanded tactic allows manufacturers to pad their financial accounts at their customers’ expense without providing anything of value.

What is backlog pay? How can you avoid it? We’ll explore what you need to know in this post.

What is Backlog Pay?

Backlog pay, or backdated maintenance, is increasingly common with IT hardware manufacturers. However, it’s not all that well-known, mainly because many companies never encounter the situation.

Essentially, it boils down to this: If you let OEM coverage on your hardware lapse and then later attempt to have it reinstated, there is a good chance that you’ll be required to pay for the previous period during which the hardware was not covered.

You read that correctly. The OEM will require you to pay for that past period of unsupported time! Here’s a real-world example:

A client powered down two tape libraries because they were not needed at that particular time. They also allowed the OEM coverage to lapse because there was little point in paying for support on systems that were not even operational.

However, as business grew, the need for additional backups materialised and they decided to power the tape libraries back up, as well as to reinstate coverage with the OEM. Imagine the surprise when they learned that the only way the manufacturer would cover their hardware was if they paid for the year during which the hardware was not covered (and not even operational).

That year of coverage would have been an additional £1,700 – money paid for no reason, and in exchange for nothing. It amounts to the OEM holding hardware hostage.

Why do manufacturers require backlog pay?

Backlog pay is just one of the many tools that manufacturers use to encourage you not to let your coverage lapse in the first place.

Remember, OEMs are not known for their flexibility. They dislike it when customers don’t follow their strategy, which is to keep maintenance agreements in place until the next generation of hardware debuts, and then commit to a full upgrade. That’s how OEMs make their money.

Other tools that OEMs use to try to keep customers in line include:

  • Recertification fees: These are fees charged to recertify your hardware before coverage can be reinstated.
  • Return to service fees: These are fees charged to reinstate service and you may have to pay these on top of recertification fees.
  • Software relicensing fees: Sometimes OEMs will charge a software relicensing fee with lapsed coverage when the customer wants to reinstate their policy.

With all of these tools, the goal is the same: to keep you from allowing your coverage to lapse in the first place and to discourage you from reinstating that policy if you do allow it to lapse. They would much rather sell you new hardware than reinstate your coverage after it’s lapsed.

How to avoid this unnecessary cost.

Thankfully, there are ways around the penalties that OEMs love to put in place for customers who allow their coverage to lapse. The simplest solution is to work with a Third Party Maintenance (TPM) provider like Support 247.

TPMs are not at all interested in when your hardware was last under coverage. We don’t care if your OEM coverage has lapsed, and we’re not worried about assessing fees or charging you backlog pay for service and support that you never received. You’ll find that our fee structure is simple and easy to understand. In short, you pay for the service you receive and that’s it.

With a trusted TPM, your service begins the day your contract is scheduled to start. And you only pay for the period of time in which your hardware is under coverage. What’s more, you’re in complete control over when that contract ends.

At Support 247, our most common term is one year, but we’re happy to offer customised coverage durations. Some of our clients choose three or even five-year plans. However, other clients want something shorter, like six months, to cover the gap as they move from in-house infrastructure to The Cloud. We’re can usually offer agreements as short as just three months to fit your needs.

TPMs are happy to pick up support on your hardware right away. You won’t encounter any fees or penalties, either. We’re here to support you, not to charge you for times in which we didn’t.

Avoid Backlog Pay – Contact Support 247 today

Has your OEM coverage already lapsed and you’re faced with backdated maintenance? Considering reinstating coverage as you bring wholly-owned hardware back online? Don’t let sticker shock get you down.

Contact Support 247 today to learn more about our flexible Service Level Agreements (SLAs) and affordable rates. We regularly save our clients between 40% and 90% over what OEMs charge. And that doesn’t even count what we help you save by avoiding backlog pay, backdated maintenance, reinstatement fees, return to service fees, and the rest.

If you are ready to make the switch to Support 247, or have questions about how we can help your company, please contact us here.