June 2011

Secondary Market Myths

Debunking Myths about Buying Pre-Owned, Refurbished or Used Network Equipment

By: Network Hardware Resale

Debunking Myths about Used Networking Equipment

The Secondary Market = The Gray Market
In reality, the two markets should not be painted with the same brush. In fact, most reputable sellers of pre-owned equipment have more stringent practices in place to detect black market or counterfeit goods than most OEMs and VARs/distributors. Product packaging is not a reliable way to judge authenticity, which is why the best secondary marketers conduct extensive tests on all equipment resold to prove legitimacy. In addition to setting high standards, top providers in the secondary market are working closely with law enforcement to eradicate the counterfeit equipment problem.

Used Equipment is Abused Equipment
Reputable marketers of pre-owned equipment do not sell their goods “as is.” All offerings are fully refurbished to ensure they are as close to original condition and performance as possible. Buyers should only deal with alternate equipment sources that have a proven track record for longevity, financial stability and outstanding business practices.

The Equipment You Need is only Available New
More pre-owned equipment is available than ever before. Top providers in the secondary market maintain extensive inventories of the most popular networking equipment. This means the vast majority of requests can be filled on the spot. If not, these providers have extensive contacts, enabling them to fulfill requests within days. In contrast, it often takes weeks or months to secure new equipment from manufacturers.

Third-Party Components = Inferior Products
A third-party component is not necessarily an inferior replacement. For example, Cisco buys its memory from NEC, Samsung and other “third parties” rather than manufacture those products. The memory does not carry a Cisco logo, even when they resell it, so identical items are available directly from the memory manufacturer. Purchasing accessories like memory directly from the “third party” source may reduce costs as much as 80 percent. A knowledgeable secondary market provider helps identify these savings opportunities while ensuring all “third party” components are, in fact, high quality equipment.

Used Equipment Comes With No Warranty
In 2004, NHR introduced the industry’s first standard, one-year overnight replacement warranty on every equipment purchase. Since then, many other players in the secondary have followed suit, surpassing the warranties offered by many OEMs.

Technical Support is Not Available
Leading suppliers of pre-owned equipment offer both pre- and post-sale technical support from certified technicians. In most cases, these experts test up to 100 pieces of networking gear each day, giving them more real-world experience than even most OEM technical support specialists.

About Network Hardware Resale
Network Hardware Resale (NHR) is a leading provider of networking solutions that specialize in reducing IT costs. Based in Santa Barbara, Calif., the company is an independent reseller of pre-owned Cisco, Juniper and Foundry networking equipment as well as an authorized reseller of resilient, scalable equipment from Force10 Networks. NHR also offers cost-effective network management, asset management, alternative maintenance and technical support services. Founded in 1986, NHR provides global sales and technical support from its California, Dallas metro, New York City metro, Amsterdam, London and Singapore locations. Organizations worldwide purchase quality networking equipment from NHR, including Global 1000 companies, small and mid-sized enterprises, government entities, educational institutions, healthcare organizations and telecommunications service providers. For more information, visit www.networkhardware.com.