Here’s a hard truth that’s costing companies millions: nearly 70% of IT budgets are spent maintaining legacy equipment. That means most organizations are funneling the majority of their resources into simply keeping outdated systems alive — instead of driving innovation or upgrading to new technology.

The Upgrade Shock: $2.9 Million vs. $ 40K

Here’s where the numbers hit hard:

• A survey by SnapLogic found legacy tech upgrades cost the average business nearly $2.9 million in 2023.

• Meanwhile, that annual maintenance of aging infrastructure is comparatively modest (budgets in the $40K-$100K range).

• The effect: Many companies are either unable or unwilling to invest the full capital needed ($2.9 M on average) for a proper hardware refresh — so they choose the “maintenance until failure” path instead.

In short: Upgrading costs are high, but maintaining legacy equipment also drains resources and stops you from moving forward.

The Smarter Solution: Third-Party Maintenance (TPM)

This is where third-party maintenance (TPM) providers become a game-changer:

• TPMs offer the same — often better — support as the OEM, but at 40–70% lower cost (varies by vendor, hardware type, contract terms).

• They allow you to extend the life of your existing hardware without compromising performance or uptime.

• By reducing the maintenance drain, you free up budget for strategic initiatives.

Imagine: Instead of spending large chunks of budget maintaining legacy equipment or being forced into a major upgrade, you reduce your support spend, keep your existing hardware running reliably, and invest savings into the next generation of hardware.