The BrainPool Discusses Extended Warranties for Aging Servers
April 10th, 2010 by Paul Sterley | No Comments | Filed in Backup and Restore, Hardware, VirtualizationRecently, a discussion took place on the BrainPool distribution group that contained good comments and perspectives about extending the warranty on an aging server. I felt that there was significant value in this conversation, so I have pasted it below in its entirety. If you’d rather just have the salient points, I have enumerated them here:
Pros:
· Fast replacement of hardware when a clear and definable failure occurs.
· Availability of replacement hardware that may not easily be found elsewhere.
· Peace of mind for business owners that in the event of a failure, a mechanism exists for fast recovery.
Cons:
· Expense that might be better spent elsewhere, for example the purchase of a new server.
· False sense of security which could lead to downtime when the aging server fails.
Mitigating Factors:
· In a virtual environment with a Storage Area Network, it is fast and easy to boot a VM on another host when one fails.
· If there is identical hardware available, a parts replacement warranty may not be needed.
Extenuating Circumstances:
· In some business environments, redundancy and high availability are absolute requirements. In these cases, the above considerations probably do not apply, as there is an overriding business requirement for warranty/service contracts and failover hardware.
The discussion commences here:
Lynn says:
Occasionally, I really question whether it is prudent to recommend extending warranties for aging hardware. The cost is pretty extreme (a recent Dell quote tells me this), to the point you could buy new hardware for the cost of extending the warranty for a couple of older servers. I understand the concept of covering your own a$$, but with VM’s, disk based backups, relatively cheap SATA storage, etc – you can get a down system back online in pretty quick order, and work on the bad hardware in the background, without sacrificing much in the way of performance. Does anyone have any thoughts on this? I mean, it’s one thing if it was an ESXi box and you’ve got multiple guest systems running on there, but a file server, even an email server (aka – pretty much any single purpose server you might have) – I’m much more on the fence about that sort of thing than I used to be. Thoughts?
Joe says:
The big picture is that a company can say “I’m covered” for ~$650 a year. Now if the server dies, how much can they be out? I know things don’t hard fail like they did 10 years ago, but still, a new motherboard / processor / power supply and you’ve spent more than the insurance would have cost you, and it’s on someone else to show up with the parts. If you’re white boxing it, it isn’t as big a deal. For Dell/HP/IBM/etc there are times when getting a specific part means you have to turn to eBay and hope for a quick ship.
Normally I say buy it, but only in 1 year increments. Remember, Murphy reads these emails.
Larry says:
I always recommend a warranty extension if the server falls into the “production server” category and the client does not want to upgrade to a new system or there is not a business reason to upgrade. I also found that if you call CDW, you can get the warranty for considerably less than you can from HP. In my case, I was able to extend the warranty for 2 years on a system for less cost than HP would have charged for a single year.
Ellis says:
I believe these need to be viewed as an insurance policy, and as such they become a business decision, not a technical one.
One extenuating circumstance I have run into with both HP and Dell is that you might not be able to buy a replacement part for an old system, yet you can get that part if you have a warranty. Trying to locate replacement parts for a production system on eBay is not my idea of a responsible way to run a business.
Jason says:
+1 for Ellis’ comments. If you have a production server that is mission critical, not having a service contract is insane in my opinion. The only time I would consider otherwise is if you have an identical spare server you can use as an organ donor. I have a client with an old Dell 2650 server that Dell will no longer write maintenance agreements on. They are just about broke, so I suggested they buy an identical server off Ebay for $75 and use it as an organ donor. Plus, even though their server is old, the SBS 2003 install on it is really stable.
If Dell would write a maintenance contract for it, I would have told them to do this. When doo doo hits the fan, having hardware support is always nice (just in case), and without a support contract, you don’t get that.
Paul says:
With virtualization as a tool in the belt, I am having some customers keep old servers around instead of tossing them. With a restore and P2V if necessary, an older server could run the newer server’s roles for a short time while the new one is being fixed. This of course has to be looked at individually – can the old server really do the job even for a short time? Is it capable, even if slower? Does it have enough disk space, or can it do the job of serving some stuff, and the rest can be restored to USB disk if needed for the short term? Given the amount of time needed for recovery of the new server, is it worth the time/effort to restore to a recovery server?
Joe considers:
There is one twist, and that’s if you’re running a VM based setup. If you have 2-3 physical servers, and a SAN, the only service contract you need is on the SAN. Oversize the RAM in the host servers, no such thing as too much, and migrate the VMs to another physical host if one fails.
In a single server instance, yes, hardware contracts are mandatory. In a multi-server setup, you can run a box until it dies as long as all the data is on the SAN, and you have resources to move the VMs over.
Ellis questions:
Aren’t you making some assumptions about customer expectations and service level agreements in your comment? In some environments, a loss of redundancy would be considered cause for immediate action.
Joe answers:
Yep, I’m assuming a lot, and it will vary depending on the client. The upside is that in most instances, downtime is less than 10 minutes rather than waiting a full 4 hours, if the vendor has the part in your local area. I’ve had Dell drive up parts from Portland for a server that was down. Had that server been a VM, I could have moved it and not involved the hardware vendor until the client was working again. This setup allows the client to downgrade from a 24/7 4 hour contract to a NBD contract at a huge savings. Granted this involves a SAN that may or may not be in the budget, and the SAN would need that 24/7 2 or 4 hour contract.
If a 4 hour outage isn’t acceptable then they should be on a hardware replacement cycle where this discussion is moot.
Ellis clarifies:
I think you’re missing my point. Your recovery plan, supported by the hardware architecture you describe, is exactly what the customer would hope for. My point is that once the system is brought back online, there is still an outage to recover from: the system is no longer redundant. In that case isn’t having a warranty good practice (although sometimes more expensive than we would like) to complete the resolution?
Paul says:
If the server in question is fairly recent, it might be a good idea to still have that warranty on it, but how much does the warranty cost, versus the replacement part? If quick recovery and business productivity has been achieved, and now we are looking at repairing the failed system, we don’t necessarily need the quick response offered by the warranty. If the failed host server is so old that parts are not readily available, then perhaps it would be time for replacement of that host, rather than repair.
Tags: Aging Servers, Extended Warranty

