[calix-nsp] New 5x5 warranty promotion

Frank Bulk frnkblk at iname.com
Wed Mar 31 00:24:16 EDT 2010


Most of you have probably seen Calix' new 5x5 warranty promotion, extending
warranty for any equipment as far back as 2005 for another 5 years at 5%.  

For those who have larger numbers of units, has your team crunched the costs
and failure rates to see if it would pay?

With the original extended warranty design we figured it was significantly
cheaper to stock more spares and pay for the spares and repairs than to buy
a longer warranty.  I'm guessing this new warranty promotion came out
because we weren't the only ones who came to that conclusion.

It was a step backward when Calix had move away from advance part
replacement to a ship-first policy, and even then, replacements weren't
coming back on a timely basis.

Frank





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