Data center News
Park Place Technologies: 8 Things To Know As Partner Program Debuts
Joseph F. Kovar
Park Place Technologies, the largest third-party hardware maintenance provider that is also expanding into monitoring and management services, has been around for 30 years, and is finally getting ready to formalize the relationship with partners who already account for over 40 percent of its revenue. Here are eight keys to understanding the company.
Some of the biggest competitors to Park Place Technologies is the OEM producers of the servers, storage, and other data center equipment. Customers looking to extend support for equipment coming out of warranty have to decide whether to purchase extended contracts from the OEM manufacturers or via a third-party maintenance provider like Park Place. Park Place, in turn, needs to get parts and expertise from channels other than those OEMs.
Most of the equipment Park Place supports is on the secondary market, and may range from three years old to over 20 years, Cox said.
“Oftentimes, the parts we’re using aren’t even available,” he said. ”We’re talking about gear that’s been out in the world a while. The vast majority of our spare parts come from the secondary market where we have vendors that specialize in that. As you could imagine, as folks refresh equipment, they get rid of the old equipment, and that goes to a vendor to be torn down and disposed of, and that creates a spare parts supply.”
In terms of technical talent, most of the engineers at Park Place came from the OEMs, Cox said.
“They are super talented folks looking for an alternative,” he said. ”They come work for Park Place. We’re not competing with the OEMs on gear that was released last week. ... We’re looking at things that have been in the market for at least three years, so there’s time for those skillsets to be circulated to a broader set of the population.”
The biggest advantage Park Place has over OEMs is that it is a multi-vendor service provider, Cox said.
“If you’re client, and you’ve got five to ten different OEMs you work with across storage, server, and network, you need to have five to ten different maintenance contracts,” he said.
Furthermore, he said an OEM will monitor only its own equipment. Also, he said, OEM prices are 30 percent to 40 percent higher than those of Park Place.