As cool as it may be to have the latest-generation computing architectures running in your enterprise’s systems, many IT applications don’t need the speed. Some systems and components just need to work well enough with modern applications to not hamper users’ productivity; for example, older routers may lack some of the newer management amenities, but they can still carry the same traffic at the same speeds. That said, it’s advisable to buy previously owned gear sooner rather than later.

“You’re starting to see used PC prices climb back up again for Pentium 4s and other entry-level systems before the dual-core units,” says Cliffie McKay, director of operations for IT asset lifecycle management company DMD Systems Recovery (877/777-0651; www.dmdsystems.com). “They’re starting to go back to about where they were one year ago. A 2.8GHz P4 is going to run you about $125 or $130. Eight months ago, when you were seeing all the layoffs, you could get it for about 70 bucks. Still, used is a growing trend because it’s cheaper and people are trying to watch their budget. If computer equipment breaks and you’re already at your limit, the budget may mean there’s no choice but used.”

The question, then, is how to find previously owned IT hardware and not get burned in the process.

 Three Levels Of Used Equipment

When it comes to buying used IT equipment, there are three basic levels in the market. The lowest is equipment purchased as is from a relatively unknown supplier. Online auctions are a common source for such equipment, and such dealers can often provide the lowest price for gear. But as Darin Stahl, lead analyst at Info-Tech Research Group, cautions, discounts and risks go together.

“If I’m going direct to [an] OEM and buying their previously enjoyed equipment, I’m not going to get quite the discount, but my risks are going to be a lot less as opposed to jumping out on eBay,” Stahl says. “There are some dubious and nefarious activities going on out there. If you’re in an enterprise with an experienced IT staff used to this market, they might be a little more comfortable going this route. But if buying used is a new strategy being born of current economic conditions, I see a lot of folks starting out with the OEMs.”

Vendors such as IBM, Cisco, Sun, and HP all have Web pages dedicated to selling refurbished and previously used equipment. Some of this will be lease returns, some used internally, and some will simply have been shown in VAR demo rooms. This is the top tier of used IT equipment, and as such, it’s likely to carry both the highest price and the highest overall quality and support.

Russ Hill, purchasing director for Data Media Source (800/252-9268; www.datamediasource.com), which specializes in previously owned tape media, believes it’s important for resellers to pay attention to equipment quality: “We want the end user to open up a box of tape and have something that looks and performs like new.” Companies such as Data Media Source represent the middle tier of the used market, wherein specialist resellers step in, carefully screen and prepare product for resale, and then back it with enterprise-class support. Info-Tech’s Stahl believes this is where most small and medium-sized enterprises will find the most comfortable balance between pricing, quality, and support. Most midtier used equipment sellers, he adds, will also be able to provide documentation showing exactly where a given piece of hardware has been.

 Important Considerations For Buying Used

Prior-life documentation can be invaluable to managers looking to get the most for their money. For example, depending on the depth of detail accompanying hardware, one might gain insight into whether a server was run in a heavy-duty virtualization environment. If so, then the odds are higher that the internal components will have been more stressed for more prolonged periods and perhaps under higher temperature conditions, all of which can negatively impact the hardware’s longevity.

Along with product documentation, a used equipment supplier should be more than willing to share its processes in taking hardware from acquisition through resale readiness. For instance, some vendors will buy mass lots of hardware anticipating a 15 to 30% fail rate during screening, which often includes a physical check of the hardware for any damage, plus cosmetic touch-ups for things such as sticky spots from labels, ink spots from markers, and chips and scratches in the paint, as well as an internal examination, which looks for tell-tale signs such as blown capacitors or burn marks on motherboards. Additionally, software stress testing may be performed to make sure hardware performs under load. Without this level of quality control, buyers have little to no true idea of what they’re buying.

“Look for a vendor you can trust and can develop a good relationship with,” says DMD’s McKay. “Look for a certification like being a Microsoft Authorized Refurbisher [or] a member of the Better Business Bureau. Companies that are ISO-compliant or ISO-certified are big deals. To a lot of people, advertising these things looks like bragging, but those really are ways to know you can trust them.”

Not least of all, look into industry-level programs and organizations that can help steer you toward reputable sources for used equipment. In the desktop space, this might be the Microsoft Authorized Refurbisher program, which carries a set of rules for participating resellers on how they must prepare systems and load them with a valid copy of Windows XP backed by a Certificate of Authenticity. At a higher level, Info-Tech’s Stahl recommends investigating the United Network Equipment Dealer Association (www.uneda.com), a consortium of secondary market suppliers dedicated to increasing standards in the used equipment market; another such resource is the ASCDI (Association of Service and Computer Dealers International; www.ascdi.com) For an easy place to start finding secondary market suppliers, you can also check Processor’s ads and online Data Center Products For Sale resources. 

by William Van Winkle

To view original article, click here.