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Secondary Networking Equipment Market Exceeds $1B as Global 1000 Realizes Benefits of Tapping Emerging Channel

SANTA BARBARA, Calif., May 6, 2004 – Network Hardware Resale (NHR), the world’s largest and most trusted source for pre-owned networking equipment from Cisco, today announced that the secondary networking equipment market has exceeded $1 billion and is rapidly growing. Driving market demand are IT directors’ needs to maximize investments in their corporate and commercial networks and the availability of high-quality networking gear from Cisco, Juniper and Extreme – much of it current generation – offered by such leading vendors as Network Hardware Resale.

Chuck Sheldon, founder and CEO of Network Hardware Resale said, “The Global 1000 is getting wise to the advantages of buying pre-owned networking equipment and is gaining confidence in the secondary networking equipment market as a compelling channel for business-critical networking gear. Helping the industry reach greater prominence is the emergence of a few dominant vendors who have helped to validate the industry by consistently exceeding customer expectations of quality, service and price. This has allowed the leaders to take increasing share not only from other secondary market vendors but from authorized resellers and the OEM’s themselves.”

A Brief History of the Secondary Networking Equipment Market

The secondary networking equipment market began in garages and home offices of savvy entrepreneurs across the globe. Chuck Sheldon, one of the industry’s early pioneers, realized the value of this relatively scarce commodity in the early 1990’s. Leveraging relationships with IT directors and network administrators in businesses large and small, early market participants generally kept their “day-jobs” and used their small businesses to supplement their incomes. With the growth of the Internet and “Internetworking,” the market for networking equipment – new and used — skyrocketed. Pre-owned networking equipment vendors soon began to leverage the online channel to gain increased visibility and marketing efficiency. By the late 1990s / early 2000’s, the used networking equipment market had gained some traction and was boosted by the so-called “dot-com bust” and record corporate bankruptcies – which generated excess equipment on the market. At this time, industry pundits began to acknowledge the market – but relegated it as a “gray market.” They branded it as a temporary phenomenon that was sure to be squeezed-out of the market as the economy recovered. These characterizations have proven to be invalid.

The Secondary Networking Equipment Market Exceeds $1B

Today, the secondary networking equipment market is strong and growing. Based on internal analysis conducted by Network Hardware Resale, the market for secondary networking equipment exceeds $1 billion and is a highly fragmented market dominated by a few leading vendors. Network Hardware Resale leads the market as the largest worldwide reseller of secondary Cisco equipment and is currently tracking to generate $75 million in revenues in 2004. NHR believes that there are as many as a thousand small vendors in the secondary networking equipment market worldwide operating out of their homes, in small offices or on the Internet (i.e., online auctions). Various factors are driving the market and will distinguish the leaders over the long-term:

  • Opportunity for corporate and commercial networks to maximize IT investment and increase ROI
  • Availability of current generation and hard to find equipment — in particular Cisco equipment which dominates the network equipment market worldwide
  • Ability to acquire used equipment with confidence (quality, knowledge, service)
  • Thorough testing and refurbishment with state-of-the-art facilities
  • Resources necessary to have “in inventory” product for immediate shipment
  • Speed of delivery

About Network Hardware Resale

Network Hardware Resale (NHR) is the leading provider of pre-owned Cisco, Juniper and Extreme networking equipment. Founded in 1986, the Santa Barbara, Calif.-based organization has been recognized by Inc. Magazine as one of the fastest growing private companies in the United States for four consecutive years. NHR provides global sales and technical support from its California, New York City metro and Amsterdam locations. More than 10,000 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

NHR Benefits

  • Savings of 50-90% off Cisco List Price
  • Availability of the most demanded / popular networking equipment
    • Latest and greatest equipment (including Cisco 6500 and GSR Series)
    • Previous generation, high-demand equipment (including Cisco 2600 and 1700 Series)
    • Also top-of-the-line Juniper and Extreme equipment
  • Over $75 million in inventory (Cisco List Price)
  • Fully-guaranteed equipment that is as good as new
  • Sophisticated technical expertise (CCIEs and CCNAs on-staff)
  • State-of-the-art test facilities
  • Ability to off-load older / excess equipment and reclaim capital investment
  • Lower total cost of ownership (through the purchase of spares versus hefty maintenance contracts)
  • Speed of delivery (within five days for most equipment)

To learn more about the secondary networking equipment market and how Network Hardware Resale can help you, contact us at 805-690-3758 or [email protected] / [email protected], visit us on the web at, or come see us at the upcoming tradeshows:

  • Networld + Interop (Las Vegas, Booth 2401): May 11-13
  • IT Director’s Forum (United Kingdom): May 12-15
  • Sviaz/ Expo Comm (Moscow, Russia): May 11-15
  • FISPA Conference (New Orleans): May 20 – 22
  • SUPERCOMM (Chicago): June 20-24


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