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Sales of used IT equipment doing good in AP

Veronica C. Silva | Feb. 22, 2012
Organisations cutting costs on IT are driving business.

A reseller of new and used IT equipment has noted brisk sales in the Asia Pacific region last year, boosted by the need for organisations to cut cost on IT while remaining competitive in the marketplace.

Network Hardware Resale, which sells pre-owned and new networking equipment for significant cost savings, said revenue in the region grew by as much as 25 percent last year. The California, U.S.-based company sells pre-owned Cisco, Brocade/Foundry, and Juniper networking equipment, and is a Premier member of Dell's PartnerDirect programme.

The company said it was able to help organisations save as much as 70 percent off Cisco list prices on  used current generation networking equipment and nearly 90 percent off used legacy equipment that are no longer available from traditional channels. Its inventory of new and used IT equipment has also helped organisations save more than 75 percent off from other OEM vendors such as Juniper, Dell Force10 and HP. It also sells optic equipment, including gigabit interface converter (GBICS) and transceivers, at more than 80 percent off.

"Since 2007, we have brought hardware cost savings of US$100 million to businesses across Asia Pacific and have seen our business grow 300 percent over this period," said Jason Ogden, regional director, Asia Pacific, Network Hardware Resale. "We remain optimistic on the growth prospects for the region after a strong 2011 and are looking forward to another successful year."

Industry trend

The company's optimism is partly grounded on empirical data. It recently conducted a survey among its global clients to determine their purchasing decisions. The study revealed that the top purchasing decisions are:

- network expansion,

- upgrading old equipment,

- new capital investment, and

- the need for equipment no longer available from the traditional channel.

Independent analyst firm IDC also confirms Network Hardware Resale's expectations.

"As IT buyers continue the push to minimise their expenditures for existing IT platforms, the acceptability and sales of used IT equipment will remain robust," said Joseph Pucciarelli, program director, technology financial & executive strategies, IDC. "Used IT equipment is a logical way to add network capacity while saving on costs."


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