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Used IT equipment - Smart investment

Anushkar Mohinani | Sept. 14, 2011
Purchasing pre-owned, used or refurbished equipment can result in huge advantages including dramatic savings for Asia Pacific companies, says NHR’s CEO.

Mike Sheldon

Mike Sheldon, President and CEO, Network Resale Hardware

The decision to opt for the latest equipment is often based on the notion that 'newer is better'. However, with fears of a fresh financial crisis looming around the corner, businesses throughout the Asia Pacific need to find ways to cut costs.

One way to do so is to look at an alternative approach to purchasing their networking equipment. This 'smart' networking alternative was the essential gist of the event hosted by global reseller of networking equipment Network Hardware Resale (NHR) in Singapore on Thursday (8 September).

Buying used networking hardware as an alternative support strategy is a great way to hold down costs, according to NHR's president and chief executive officer Mike Sheldon.

There's always a significant amount of cost involved whenever organisations buy new IT equipment, whereas they can get tremendous value for their dollars when they invest in pre-owned, used or refurbished technology, elaborated Sheldon.

Other advantages in purchasing used networking equipment from reputable providers such as NHR include quick delivery and support, and freedom of choice from an extensive inventory of vendor-neutral products, Sheldon added. 

The company reportedly holds the market's largest product selection, predominantly from Cisco, followed by other vendors including Juniper, Extreme and Redback.

Dispelling stigmas

Discussing some of the challenges in NHR's strategy of ramping up its presence in the Asia Pacific, Sheldon said the region is a relatively new market when it comes to used and refurbished networking equipment.  

In the Asia Pacific, NHR currently covers markets in Hong Kong, Taiwan, South Korea, Thailand, India and Japan. It is looking to penetrate China, Indonesia and the Philippines.

When it comes to making the decisions to buy equipment from the secondary market, Asian companies typically remain cautious, he noted. Moreover, with 'used' anything, there is automatic mode of perception on its lack of authenticity, highlighted Sheldon. Investing in used IT equipment has carried with it certain stigmas, he said.

However, NHR is confident of its ongoing success in the region given the advantages the smart networking alternative offers particularly to companies looking to tighten their belts. The global reseller can reportedly offer cost savings of 50 to 90 percent off of original equipment manufacturer list prices.

Additionally, dispelling concerns on the quality of used gear, NHR keeps its failure rate to an average 0.5 percent on field-tested pre-owned equipment, indicated Sheldon. In terms of service quality, NHR provides 24-hour support and next business day hardware replacements, he said.

Asia's take-up

According to NHR Asia Pacific regional sales director, Jason Ogden, companies in the region are already taking advantage of this alternative channel as they strive to maximise the value of their technology investments.


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