December 2012

Why Listen to a Remarketer?

Why Listen to a Remarketer?

By: Corey Donovan, Vibrant Technologies

You want updates on the latest systems and trends. You might wonder – “Why should I heed the words and opinions of a used IT hardware remarketer? They sell equipment from two to three years ago, right?”

I can see where you’re coming from, but the myth that we only sell museum-ready systems is exactly that: a myth. You would be surprised at how quickly the latest models hit our docks. We’re typically stocking servers, routers and storage hardware two weeks to two months after a product is launched. There is more to this question than recency though.

1) Tech Analysts are Listening
We get polled by Wall Street and media analysts hungry to get the unfiltered truth on how individual manufacturers and products are doing in the marketplace.

When a new product is launched, we can tell how successful it will be based on the number of clients looking to trade in the previous technology. For example, when IBM released its IBM P5 line, we knew they had released yet another winner. For example, we immediately started receiving price requests and instantly noticed a large number of people trading in their older used RS6000 equipment. It’s extremely important that we follow these trends as we have to forecast which directions values will go when making offers to purchase hardware. Our IBM buyers had to decrease valuations on used RS6000 equipment, knowing the flood of equipment bound to hit the secondary market would create a supply glut and falling prices.

2) No Platform Bias
Like many used resellers, Vibrant offers products from a wide array of IT equipment manufacturers. Most VARs, on the other hand, are locked into one (or a small handful) of options that they recommend. Speak with a manufacturer’s rep and you’ll only hear about one brand: theirs. (Unless, of course, they’re telling you they’re better than the other guy.)

So, who do you think will give you an unbiased recommendation for your specific application or requirement? Even if we’re not directly benefiting from an opportunity, we’re happy to assist our clients if they’re trying to decide between an HP or an IBM Server. If they give us a shot to present a comparison quote on a used server, well, that’s even better!

3) Hardware lasts longer than six to nine months
Ok, so here is the other side of the recency coin. The manufacturers seem to come out with a new system, server, router or SAN about every six to nine months (or so it seems). The latest release might be inappropriate for your situation, yet will be pitched to you anyway when dealing with VARs and channel reps. If you have an older system and simply want to upgrade it with memory or disk, the manufacturer may tell you that it’s no longer available, or if it is, the pricing is still at ultra-high prices from the previous year.

Vibrant offers information on servers that are suitable for your current needs, and can also offer an upgrade path at prices up to 90% off the original list price. The manufacturer may have sold your memory upgrade at $5000 a few years ago, and have never updated that pricing. It wouldn’t be uncommon for us to now have that same memory kit in stock at $500. That surely beats the overkill of a new server.

Having choices and resources helps you choose your solution without blinders on. We’ll do our best to broaden your range of options, so you’re able to choose what’s right for you.

 

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