Hardware & Computer Warranties: Are They Worth It for Business?

Introduction

Hardware warranties are discussed when making computer purchases, but are they worth it? Businesses rely heavily on technology more and more every year, and warranties can help cover the cost of unexpected repairs, prevent extended downtime, and increase productivity. But there are many warranty options out there, how do you know which one to choose?

Why extended computer warranties on business computers are different?

Business warranties are different than a warranty on your new camera. They offer better support options, longer warranty periods, and more comprehensive coverage. Making them a good choice for businesses that rely heavily on their technical hardware.

Computer Equipment is Essential for Operations

These days it’s hard, if not impossible to find a business that doesn’t use technology in their daily operations. When their network or computer systems go down, business comes to a stop. Unexpected issues will happen to all businesses eventually. So, it’s good to have plans in place to prevent downtime.

Parts for Repair are Not Always Readily Available for Non-Warrantied Hardware

The older your computer systems are, the higher the chances of your parts no longer being produced. Sourcing hardware from a 3rd party website often takes longer. Having a manufacturer’s warranty in place ensures that parts will be available for you. If parts are no longer available, the warranty or warranty extension will no longer be available for purchase or renewal.

Cost of Repair is Included in Computer Warranties

Repairs need not unexpectedly affect your bottom line. Warranties typically cover any costs for new hardware as well as onsite technical assistance. The manufacturer will send a technician to replace the failed part as part of the warranty. If you are using an IT Managed Services provider, like IntegriCom, they can coordinate and assist in this repair work, which is generally covered by the monthly fixed fee contracted amount.

Cost of Replacement is High

With the supply chain issues of recent years, replacing computer parts is more expensive than ever and can take a lot of your time. With a warranty, the cost of replacement parts is already baked into the warranty and there are no surprises.

Benefits of Hardware / Computer Warranties for Businesses

Businesses should consider warranties for their technological systems. Most computer hardware comes with basic warranty coverage, and it is often used. Extended coverage can be added. Here are several things to consider when purchasing computer hardware warrantees.

Cost savings

Computer warranties are essentially insurance policies that protect you from financial losses in case your computer or other electronic device breaks down or malfunctions. This can provide cost savings over a replacement computer purchase should the unit fail.

Convenience and Peace of Mind

Your valuable time is already taken up with running your business and having to add time to find replacement parts for your failed computer, or finding a full replacement unit, is not a good use of your time. Having a warranty in place makes repairs and potential replacement easy and worry free. Certain vendors will not assist repairing their product or devices unless you have an extended warranty in place.

Enhanced Support and Services

Business warranties usually come with enhanced support options, such as dedicated technical support, on-site service, and faster response times. This ensures that businesses can get their hardware up and running quickly in case of any issues.

Original Manufacturer Extended Warranties vs Third Party Extended Warranties

Original manufacturer extended warranties and third-party extended warranties are both options for businesses to extend the coverage beyond the standard warranty period. Here are some differences between the two.

Manufacturer warranties (OEM)

Original manufacturer extended warranties usually provide more comprehensive coverage than third-party extended warranties. This is because the original manufacturer knows the product inside and out and can provide more specific coverage for potential issues. For example, buying a Dell warranty on your Dell computer.

Third-party computer warranties (if applicable)

Third-party computer warranties may be cheaper and available for purchase from more retailers. However, they often have more limitations or exclusions. And you may not be dealing with a specialist for your specific computer.

Factors to Consider when Choosing a Warranty

When deciding between an original manufacturer extended warranty and a third-party extended warranty, there are several factors to consider.

• Coverage: What exactly is covered under the warranty, and are there any exclusions or restrictions?
• Cost: How much does the warranty cost, and is it worth the price for the coverage provided?
• Provider reputation: Is the warranty provider reputable and reliable, with a track record of fulfilling claims?
• Convenience: How easy is it to file a claim and receive service under the warranty?

Hardware and Computer Type

Different types of hardware may require different types of warranties. For example, a laptop may need a different warranty than a desktop computer. Or you may choose to purchase an extended warranty on a laptop and not a desktop. Laptops are moved around a lot and are more prone to being dropped or damaged in some way. Whereas a desktop computer is generally just stationary in an office. Make sure you choose a warranty that is specifically designed for your type of hardware.

Budget

Warranties can vary greatly in price, so it’s important to consider your budget when choosing a warranty. Keep in mind that a more expensive warranty may offer more coverage and benefits but may not always be necessary depending on your needs.

Business size and needs

Larger businesses with more hardware and higher usage may require more comprehensive warranties than smaller businesses. Consider the specific needs of your business and choose a warranty that provides the appropriate level of coverage for your business computer repairs. Alternatively, a larger company with many computers may choose to purchase a few extra computers vs. a warranty for all computers. But this does require internal management and repair labor. Also, some companies choose to lease computers with the warranty included.

Warranty terms and conditions

Make sure you carefully review the terms and conditions of any warranty before purchasing it. Look for any exclusions or limitations, such as specific types of damage or a limited time frame for making claims.

Provider reputation and customer support

Choose a reputable provider with a track record of providing reliable warranties and excellent customer support. Read reviews and do your research to ensure that the provider you choose is trustworthy and responsive to customer needs.

What is a downside to purchasing an extended warranty? What happens if I never use it?

Computer warranties do cause the purchase price of the computer to be higher. And like any insurance, not using it may seem like a waste. But the idea is to provide coverage in the event of a failure thus saving you time and other associated costs. You may want to ask yourself how much it would cost your business to handle the failure yourself. What key functions will it pull you from? How costly is it to have an employee with no work to do because the computer is down? If you are happy with your answer, then not buying the warranty may be right for you. Or if your computer volume allows, you may want to purchase extra computers to reduce the cost of downtime. This works if you have a good plan in place to swap the user’s computer and get them up and working right away. If you have a great IT managed services provider, they can be of assistance here. Here at IntegriCom, we always document each of our clients in detail so setting up a new computer for our client’s users is a well-established and quick process.

Summary

At the end of the day, the main benefit of hardware warranties is to prevent downtime and to keep business operations flowing. The peace of mind that comes with a clear plan in place for failures is valuable. And having the assurance of low downtime is very beneficial. If you need help determining whether a hardware warranty is the right choice for you, or what type of warranty is best for you, please contact us for assistance. We love to help businesses get the most out of their technology. We believe that technology should both lower expenses and increase profits. Contact us for ideas on how to do just that throughout your organization!