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Stop thinking about refresh cycles and take a strategic leap into the world of hybrid and cloud solutions, unlocking efficiency, flexibility, and long-term business value far beyond “like-for-like” upgrades
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Every technical team manager will, at some stage, consider when it’s time for a hardware refresh. The standard timeline for hardware refresh has been every three years – perhaps longer for storage devices. But in the past decade or so, this has been stretched to four or five years; in these straitened times, companies look to stretch their assets as far as possible.
But there is another approach that can be taken: businesses can examine whether their current setup is currently serving all their needs and rather than merely refreshing what they already have, will look to go down a different path, taking a new strategic approach.
We have already seen a version of this when, a dozen years ago, companies started to look at cloud computing and how a different approach can be accommodated. Now that cloud has reached a level of maturity such that most organizations are now deploying some aspect of the technology, companies can look again at the technologies they’re using and ask themselves: could I be doing more?
It is an approach that has merits. According to Howard Hall, Managing Director, Hybrid Cloud Services provider DTP Group, equipment refresh cycles are a wasted strategic opportunity in IT. “Most organizations default to upgrading what they already have rather than questioning whether their current approach still makes sense. The ‘like-for-like’ mentality feels safer, but it continues outdated architectures and misses the chance to improve how technology supports the business.”
He says that companies should really be examining their future needs and how technologies are going to shape what they are planning to do. “It’s no longer just about upgrading servers or storage to the latest specifications; it’s about asking whether the infrastructure still serves the business in the most efficient, secure, and flexible way,” Hall argues.
Consequently, we have seen many businesses undertake digital transformation projects, as a step up from the typical refresh process. It can be easier said than done. According to a 2024 report from McKinsey, many digital transformation projects don’t reap the desired rewards. In fact, the consultancy found that the average return on these projects typically ran at 31% lower than expected.
There could be many reasons for this. In some cases, it could be because the technical and business visions aren’t fully aligned – in particular, what the exact aims of the project are. In some cases, it could be due to underinvestment. Or perhaps, despite their best efforts, there hasn’t been significant enough divergence from the old way of doing things; the mindset was more “refresh” than “transform”.
It’s a familiar story for Jaco Vermeulen, CTO at digital transformation agency BML. “We take a strategic approach when advising companies of refresh/upgrade decisions across both hardware and systems,” he says. “In order to be future-fit, the initial advice begins from looking beyond a simple like for like replacement, but rather take the opportunity to build, or build on a strategic foundation for scaling and longevity.”
The obvious way in which companies can look to the future is to take a more hybrid approach. We have already mentioned that many organizations have now brought cloud into their infrastructure to some extent, but how much further this can be taken? “Currently, hybrid strategies are coming to the forefront,” says Hall. “Many workloads are best placed in the cloud, while others remain better suited to on-premises or edge. A refresh cycle gives organizations the chance to re-evaluate where those boundaries should lie, taking into account performance, security, compliance, and cost optimization.”
CIOs should create a plan that brings out the best of cloud and the best of on-premise technology, then adapt accordingly. At its most prosaic, if a server has reached the end of its natural life then think about whether it needs to be replaced or whether it’s time to move that function to a cloud. It is important to stress that a more modern approach would not necessarily move to the cloud; it’s a question of adapting to meet needs.
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We have also seen an increasing use of converged technologies where compute, storage, and networking are more tightly integrated. Again, there may be arguments for sticking with the status quo rather than adopting a new approach; it’s something that a CIO will have to consider.
There are many factors to consider during the decision-making process, including the strategic one of which direction your organization is heading. This invites a set of technical questions. Will there be greater use of data? Is there a latency issue? Are you in danger of running out of power? Do you have skills shortages? Are there vertical sector regulatory requirements?
At some point you will have to tackle the question of finance. Of course, cost is always going to be an issue, but beware of short-term thinking that prevents you from transforming your strategy. Doing so may hit the bottom line more. “Yes, the ‘refresh mindset’ may cost more upfront,” says Vermeulen, “but often costs significantly less and delivers greater value in the long run.”
One clear example of the new flexible approach is the rise in the adoption of HPE’s GreenLake, a technology that is hybrid by design, meaning that companies can more easily adopt cloud or on premise according to what fits their particular needs.
It is not a question of just implementing GreenLake as an option – although it helps with a flexible approach – it is a question of what technology fits best. It really is time to think of what a company’s future needs are.
DTP Group’s Hall says that this look into the future is key. “The challenge is changing the conversation from ‘what do we replace?’ to ‘what do we want to achieve?’ Every refresh cycle is a chance to optimize your entire technology foundation rather than simply maintaining what you had before.
“Instead of locking into another three to five years of like-for-like hardware, use the opportunity to modernize architectures, embrace as-a-service models, and build an environment that suits future needs, not just today’s.”
