Network Hardware Resale Releases Findings of Secondary Market Survey, Reinforcing Increased Customer Adoption of Refurbished Network Gear

May 12, 2008

Angelique Springer Davis
Network Hardware Resale

More Than Three Quarters of Respondents Use Refurbished Gear in Production Environments; Nearly Half Predict Increased Spending Over Next 12-to-18 Months

Santa Barbara, Calif. ─ May 12, 2008 ─ Network Hardware Resale (NHR), the leading provider of pre-owned and new networking equipment, today released the results of a market survey of 400 North American companies that purchased refurbished network equipment from NHR or other secondary market equipment providers. The results reinforce growing market momentum, polling respondents on a variety of topics including continued propensity to purchase pre-owned gear from the secondary channel, deployment strategies and increasing interest in alternative maintenance options.

In 2007, NHR added 2,600 new companies to its customer base of 10,000 organizations from different industry sectors, ranging from telecommunications and healthcare to high tech, manufacturing, financial services, education and consumer services. The majority of those surveyed represent businesses with an excess of $100 million in revenue and more than 1,000 employees. The top five reasons for purchasing secondary equipment cited by respondents are significant savings over OEM pricing, responsiveness, product availability as well as rapid delivery and warranties. As a result, nearly 80 percent of those surveyed buy from the secondary channel up to 10 times a year.

According to Mike Sheldon, president and CEO of Network Hardware Resale, customer traction in the secondary market continues to accelerate despite recent industry reports of IT cost cutting. “At a time when industry pundits are forecasting a downturn in technology spending, NHR is experiencing double-digit growth,” he says. “Increasingly, savvy IT organizations are embracing the secondary network market for its unbeatable value and unmatched responsiveness in meeting a wide range of network equipment and technical service requirements.”

Nearly 80 percent of companies polled deploy refurbished network equipment in production environments while 66 percent fuel network expansions with used gear. Network sparing, disaster recovery and testing were other top uses cited by the survey respondents. Additionally, more than a third of those surveyed revealed they only cover core equipment under Cisco’s SMARTnet support while nearly 40 percent expressed interest in finding more affordable, flexible technical services for remote offices and edge routers.

The results of this latest survey follow the January launch of NHR’s NetSure™ hardware maintenance program, which offers flexible, cost effective network services and technical support at up to 90 percent less than typical SMARTnet prices. The offering includes 24x7 technical support and advanced, next-day hardware replacement.