The Paradox of Support Costs: Why Supporting Older Assets Costs More

In the world of networking and solid-state devices, there's a puzzling phenomenon: supporting older assets often costs more than supporting new ones. Intuitively, this seems backward. If devices are more prone to failure when they're new—due to early-life failures—shouldn't support costs be higher at the beginning of their lifecycle? Moreover, many professionals find that older, more stable assets cause fewer issues than their newer counterparts. So, what's driving the increase in support costs for older equipment?

Early-Life Failures vs. Wear-Out Failures
Firstly, it's essential to understand the bathtub curve, a concept in reliability engineering that illustrates the failure rate of devices over time. The curve has three distinct phases:

Early-Life Failures (Infant Mortality): Higher failure rates occur shortly after a device is deployed, often due to manufacturing defects or early-use stress.
Useful Life: Failure rates stabilize and remain relatively low. Devices operate as expected with minimal issues.
Wear-Out Failures: As devices age, components wear out, leading to an increase in failure rates.
While it's true that many devices experience early failures, this doesn't necessarily translate to higher support costs for new assets. Warranties and initial support agreements often cover these early issues, mitigating additional costs for the user.

Factors Driving Up Support Costs for Older Assets
Several reasons explain why supporting older assets becomes more expensive over time:

1. End of Manufacturer Support
Manufacturers eventually declare products End-of-Life (EOL) or End-of-Support (EOS). Once this happens, obtaining official support, updates, or replacement parts becomes challenging and costly. Third-party support providers may fill the gap but often at a premium price due to the scarcity of parts and specialized knowledge required.

2. Scarcity of Replacement Parts
As devices age, replacement parts become scarce. Manufacturing of these parts slows down or stops altogether, and keeping an inventory of obsolete components becomes expensive. This scarcity drives up the cost of maintenance and repairs.

3. Increased Labor Costs
Technicians skilled in servicing older equipment may be fewer in number. Training new technicians to handle outdated technology requires time and resources, which can increase labor costs associated with support.

4. Compatibility and Security Issues
Older assets may not be compatible with newer systems, leading to integration challenges. They may also lack the latest security features, making them vulnerable to cyber threats. Mitigating these issues often requires additional support and investment.

5. Regulatory Compliance
In some industries, regulations evolve, and older equipment may not meet new standards. Ensuring compliance can involve costly upgrades or additional support measures.

The Hidden Costs of Maintaining Old Assets
While older assets might seem stable, hidden costs can accumulate:

Energy Inefficiency: Older equipment often consumes more power, leading to higher operational costs.
Downtime Risks: The likelihood of unexpected failures increases with age, potentially causing operational disruptions.
Opportunity Costs: Relying on outdated technology may prevent organizations from leveraging new features that enhance productivity and competitiveness.
Encouraging Asset Replacement
The increased support costs for older assets often act as an economic incentive to adopt newer technology. Manufacturers and service providers might structure their pricing to:

Promote Upgrades: Higher support costs make the option of purchasing new equipment more financially attractive.
Ensure Standardization: Encouraging the use of the latest devices helps maintain consistency in support services and simplifies training requirements for support staff.

Are We Missing Something?
It's crucial to balance the perceived stability of older assets with the long-term benefits of upgrading:

Enhanced Performance: Newer devices typically offer better performance, efficiency, and features.
Improved Security: Up-to-date equipment receives the latest security updates, protecting against emerging threats.
Cost Savings Over Time: While the initial investment is higher, the total cost of ownership may be lower due to reduced maintenance and operational expenses.

Conclusion
The increase in support costs for older assets is a complex issue influenced by factors like manufacturer support policies, parts availability, and the evolving technological landscape. While older devices may appear more stable in the short term, the long-term implications—rising support costs, increased failure risks, and missed opportunities for improvement—suggest that investing in newer assets can be more cost-effective and beneficial.