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Just before Interop, used network equipment dealers made the case for their wares to Network World editors, emphasizing that their products are authentic and regulated. At last week’s United Network Equipment Dealer’s Association (UNEDA) conference in Las Vegas , part of the focus was on how these companies are seeking to change perceptions about the aftermarket for used network gear.
As Phil Hochmuth writes, these dealers are helping to fight the counterfeiting problem by working with Rapid Enforcement Allied Computer Team Task Force (REACT). REACT is a San Jose-based partnership of local, state and federal agencies focused on computer-related crime such as theft, counterfeiting and trademark violations.
What these dealers want potential customers to know is that products are thoroughly tested before they’re put in your hands, they come with a warranty, they’re available quickly and they can cost as much as 50% less than new gear. UNEDA President Mike Sheldon, president and CEO of Network Hardware Resale, recently talked about why the aftermarket business is too legit to quit. Another organization, the Association of Service and Computer Dealers International (ASCDI), promotes ethics and works to eliminate questionable business practices by used equipment resellers.
Sheldon estimates the used network gear market to be as high as $2 billion, so it’s not surprising Cisco doesn’t take kindly to the secondary market competition. The vendor estimates that used equipment sales are grabbing $200 million to $300 million in revenue. As a result, Cisco is tightening its brand protection program and SMARTNet software licensing program.
