Processor: Buying Tips, Used & Refurbished Equipment


(Sept 7 2012) ✔Understand The Gray Market Ask a group of IT professionals what the gray market is, and you’re likely to get a variety of answers. Is it knock-off equipment from overseas? It is equipment with dubious origins? The answer to both is a vehement “no.” The common deinition of the gray arket is “the sale of equipment through channels that aren’t licensed or authorized by the original manufacturer,” and it’s both legal and legitimate.

The stigma—and confusion—associated with the gray market has prompted many resellers to undertake an ad-hoc rebranding campaign. “Used market” suffices for many, while others prefer “green market,” pointing to the environmental advantages of keeping equipment in the marketplace and reducing landill materials. Whatever you call it, the gray market offers smart buyers quality equipment at attractive prices.

✔Know Where Used Equipment Comes From Concerns about the origin and authenticity of used equipment continue to dissuade enterprises from giving the secondary market a serious look. But instead of shying away from the refurbished route, organizations should embrace the amount of high-quality used equipment currently available. Typically, used equipment comes from three different sources: direct from other data centers that are upgrading, equipment coming off lease, and asset recovery or disposal channels such as banks, auction houses, and salvage companies that have been called in to help recover cash from businesses that have downsized or gone out of business.

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