Across industries, IT modernization can create a significant strategic advantage for organizations. This is especially true across the manufacturing sector. Estimates indicate that manufactured goods make up 80% of world trade. Beyond that, manufacturing creates a positive domino effect by growing other industries and creating new job opportunities. Manufacturing is the foundation of a strong worldwide economy.
From its inception, innovation has been the hallmark of manufacturing. Today, that innovation relies heavily on IT modernization to usher in newfound efficiencies and future viability. However, manufacturers face multiple challenges that hinder IT modernization, such as budgetary constraints, IT skill shortages, legacy IT systems, cybersecurity concerns and reluctance to change.
Algoma Steel Inc., a Canadian-based steel manufacturer, recently partnered with Dell Technologies to overcome these challenges by implementing a lifecycle management strategy via Dell Technology Rotation. As a result, Algoma Steel can realize financial, operational and sustainability benefits, making it good for business and the planet.
Facilitating IT Modernization and Better Operations
Dell Technology Rotation is part of the Dell Payment Solutions portfolio. It allows organizations to implement regular, planned IT refresh cycles and gain the latest technology—sustainably and securely—while reducing costs and improving operations. Dell Technology Rotation helps organizations in three primary ways:
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- Improves cash management with flexible payment options.
- Continuously modernizes technology with ongoing IT refresh cycles.
- Supports sustainability via easy, compliant asset reuse/disposal processes.
With significant technical debt and aging technology, Algoma Steel was hesitant to make a capital expenditure (CapEx) investment to refresh IT due to the cyclical nature of the steel industry. At the same time, without a modernized IT infrastructure, Algoma Steel faced escalating risks of IT downtime and operational reliability and was unable to fully support decarbonization and sustainability goals.
Dell Technology Rotation answered these critical, multi-level challenges and enabled Algoma Steel to modernize IT. Algoma Steel’s IT team deployed a future-proof lifecycle management strategy with Dell Technology Rotation that helps better support the business. As a result, Algoma Steel can reduce unplanned storage downtime by up to 81% and boost reliability.1 “Leading technology is critical for ensuring that we have reliability and meet environmental controls,” explains Marc Disano, the manager of IT infrastructure at Algoma Steel.
Improving Cash Flow and Reducing Costs
Reducing—or eliminating—technical debt can have a significantly positive impact on business strategy and outcomes, especially in more volatile industries, like steel. Dell Technology Rotation provides organizations the flexibility to choose their IT refresh cycle and fund it through an operation expenditure (OpEx). Using Technology Rotation and OpEx funding, Algoma Steel can realize up to 60% cost savings over six years versus purchasing the technology through CapEx investments.2
To gain financial control, Algoma Steel values the consistent, predictable IT payments allowed by Dell Technology Rotation. “We didn’t want to find ourselves in the same spot in five years. We needed to change how we were budgeting and procuring IT,” shares Disano. “Now, rather than paying a large sum upfront, we keep costs down year over year. Our IT budget, refresh cycle and payments are predictable and easier to manage.”
Next-level operational improvements made possible by IT refreshes—such as increased reliability, higher efficiencies and less downtime—are another form of cost savings realized by Algoma Steel. Thus, Algoma Steel leveraged Dell Technology Rotation to eliminate technical debt and gain newfound cost savings, operational efficiencies and business agility, helping to unleash innovation for ongoing success.
Supporting Sustainability
Sustainability was a key factor in Algoma Steel’s choice of Dell Technology Rotation. About 87% of leaders say that sustainability is growing in importance. However, meeting sustainability goals remains challenging. A leading cause, according to 36% of leaders, is lack of funding. Another 30% struggle to find effective strategies that advance operational sustainability.3
Algoma Steel found that a lifecycle management strategy with Dell Technology Rotation helps overcome these challenges to support and progress sustainability goals. That was important to Algoma Steel as it strives to become “one of North America’s greenest, most sustainable steel manufacturers.” The strategy provides financial liquidity, along with the latest IT technology, helping Algoma Steel contribute to the circular economy and reducing its server carbon footprint by 534,000 kilograms.4
With Dell Technology Rotation, 95% of the technology will be safely refurbished and resold, furthering the circular economy.5 Today, organizations that select the Dell Technology Rotation strategy can reduce technology debt while using the latest technology. In turn, this increases efficiency, innovation, and sustainability, bolstering multiple goals simultaneously, and forging the way to a stronger future.
Read the full Algoma Steel customer story.
See a two-minute video on Dell Technology Rotation.
Learn more about the full portfolio of Dell Payment Solutions.
1 IDC Business Value Snapshot, sponsored by Dell Technologies, “Adopting a Technology Rotation Program from Dell Improves Operational and Cost Efficiencies for Storage,” 2021, https://www.delltechnologies.com/asset/en-us/solutions/financing-and-payment-solutions/industry-market/idc-business-value-tr-storage.pdf.
2 Ibid.
3 Evans, Dave. Forbes, “2023 Sustainability In Manufacturing: We’ve Got Work To Do” Forbes, 27 Sep 2023,/
4 IDC Business Value Snapshot, sponsored by Dell Technologies, “Adopting a Technology Rotation Program from Dell Improves Operational and Cost Efficiencies for Storage,” 2021, https://www.delltechnologies.com/asset/en-us/solutions/financing-and-payment-solutions/industry-market/idc-business-value-tr-storage.pdf.
5 Based on Dell Financial Services global data, February 2023-January 2024. Systems means desktops, notebooks, workstations, servers and storage equipment.
