Could Cisco EnergyWise kill the thriving secondary-market for Cisco equipment?

Yours truly believes that the new Cisco EnergyWise software upgrade announcement could kill the thriving secondary-market for used/refurbished Cisco equipment, why? Because earlier today I contacted Cisco to learn if the owners of used/refurbished Cisco equipment bought on the secondary-market could participate in the free EnergyWise software upgrade that is available across the entire Cisco Catalyst switching portfolio. Cisco's official response:

"Cisco IOS entitlement is not transferable, however, Cisco does provide the capability for a customer to purchase a Relicense for Used Equipment license on used/refurbished Catalyst fixed configuration switches that would permit them to update Cisco IOS with EnergyWise." View Cisco secondary-market policy as well as the guidelines for its secondary-market hardware inspection and software re-licensing program.

In my frequent conversations with secondary-market Cisco dealers, I've learned that the cost to inspect and re-license used/refurbished Cisco equipment is cost-prohibitive. It appears to yours truy that Cisco just might have brilliantly and/or accidentally killed the secondary-market in Cisco equipment. What does Mike Sheldon - CEO of secondary-market reseller NHR think of Cisco’s new EnergyWise technology?

"NHR is pleased to see Cisco introduce more green technologies, and we look forward to continuing to provide Cisco technology at affordable prices. Other manufacturers, including Force10, have been pursuing improved energy efficiency more aggressively in recent months, and this in an area where competition and innovation will truly benefit everyone. "When the discussion turns to green IT, the focus often is on energy efficiency, but reuse and extending product use are two critical yet often overlooked components of green practices. The most fundamental effort in conservation is to extend the productive life of a product and reduce the frequency and volume of raw materials involved in the manufacture and distribution of new products. NHR forecasts that its reuse efforts save more than 500 tons of potential waste material from ending up in our landfills. This amount represents the equivalent of nearly 800 dump trucks containing previous-generation networking equipment lined up for more than two miles. While NHR is as excited as any company to see advances in energy efficiency, we feel they must be paired with awareness and initiative toward reuse. "How does EnergyWise impact customers of the secondary market? In truth, although it is an exciting and important new technology, EnergyWise is just part of a routine Cisco IOS update release. "You can read more about it here. Cisco’s policies about software updates vary, but many fixed configuration switches are now eligible for free updates and bug fixes for life (see software updates). For some other Cisco products, customers will need to have SMARTnet coverage to access updates. While the feature is innovative, the delivery mechanism for the software is unchanged."

Obviously, NHR CEO Mike Sheldon does not view Cisco's new EnergyWise software upgrades as a threat to the thriving secondary Cisco equipment market, I disagree with Mike. Related stories: Used Cisco equals gypsies at a flea market Cisco EnergyWise to measure energy consumption of IP devices and building systems Cisco launches major green push with EnergyWise Cisco goes green with software upgrade

What is your take, will EnergyWise kill the thriving secondary-market in Cisco equipment? BradReese.Com Cisco Refurbished

  1. Cisco to release new February 2009 edition of its famous product quick reference guide!
  2. HP ProCurve wrestles Cisco with new tag teams
  3. Cisco distributor says customers demanding HP ProCurve
  4. Nortel chief flying in corporate jet as company files for bankruptcy protection
  5. Brocade BCFD trumps Cisco CCIE R&S in salary survey
  6. Belkin president apologizes for paying users to post positive reviews of Belkin products
  7. Padmasree Warrior as Obama choice for U.S. CTO: Huge win for Cisco, total disaster for America!
  8. Nortel employee severance payments frozen by bankruptcy
  9. Nortel board of directors vote to file bankruptcy
  10. Nortel employees speak out: Hopes of becoming multimillionaires dashed
  11. View Brad Reese on Cisco Story Archives

Copyright © 2009 IDG Communications, Inc.

The 10 most powerful companies in enterprise networking 2022