How to Reduce IBM Support Costs Using Third-Party Support

Although IT budgets have been increasing over the past few years, CIOs are expected to make that cash stretch further than ever before. The biggest challenge lies in “keeping the lights on” while still funding the strategic developments that drive business transformation.

Corporate data continues to grow at a phenomenal rate — as does the infrastructure required to host it. Hardware investments, staffing and consultancy, software licensing, and maintenance contracts all eat into the IT budget before spending can begin on new initiatives. The reality is that no matter how much more money is allocated each year, the vast majority of IT spend is consumed by maintaining existing assets. To fund growth, CIOs must find ways to reduce running costs and free resources for innovation.

The spiraling costs of IBM software

When it comes to software, vendor support and maintenance contracts are a significant drain on IT finances. With annual maintenance typically set as a percentage of the initial license purchase price — and often subject to yearly increases — the total cost of ownership grows dramatically over time.

The longer you keep an application in use and supported by the vendor, the higher the lifetime cost becomes. Once an application reaches end of support, you may be forced to either upgrade on the vendor’s timeline or purchase “Extended Support” at premium rates. In either scenario, costs can escalate rapidly with little added value.

This pattern repeats for every IBM application under a vendor maintenance contract, locking IT leaders into a cycle of rising costs and reduced flexibility.

Third-Party support and maintenance: Reducing total cost of ownership

Support and maintenance contracts represent one of IBM’s most profitable revenue streams — one reason fees remain so high. That’s good for them, but not necessarily for you.

Third-party support offers a cost-effective alternative. By moving away from vendor-defined contracts, organizations gain:

• Budget predictability – Flat, transparent pricing that avoids vendor-driven increases.
• Lifecycle control – Extend the lifespan of stable, post-warranty applications without being forced into unnecessary upgrades.
• Reduced disruption – Define and manage your own upgrade cycles to minimize risk to live systems.
• Strategic reinvestment – Free resources that can be redirected toward innovation, modernization, and customer-focused initiatives.

Independent support is particularly well-suited for stable, business-critical applications where reliability matters more than new features. It ensures that your systems remain secure and supported while giving you the flexibility to plan change on your own terms.

One final consideration

Third-party maintenance agreements cannot replace every service IBM offers. For example, bespoke development agreements remain tied to IBM. However, partnering with an independent provider for part of your IBM estate gives you more leverage when renewal negotiations come up — and can significantly reduce your overall maintenance bill without compromising system performance.

A smarter way forward

Third-party support is a proven tool for managing operating costs, reducing risk, and freeing up budget for the projects that move your IT infrastructure forward. By breaking free of vendor-defined cycles, you gain the flexibility and control needed to balance cost management with long-term transformation.

Want to explore your options? Talk to Origina today.