Cisco distie Comstor has launched a new programme designed to grab a chunk of the risky, yet potentially lucrative, market for remanufactured or refurbished network infrastructure kit.
Acknowledging that often, the used equipment offered in the market is not used at all, but counterfeit or stolen product injected into the secondary market, the distributor claimed its new development programme would maximise the potential value of this market to the channel, while at the same time affording resellers some degree of protection.
The programme has been developed to sit alongside Cisco's in-house remanufactured programme, which has been running for a decade now, and business development manager Dan Reglar said that second hand kit fit current market conditions "perfectly".
"The end-user pays less for what is effectively the same high-quality equipment, and [it] is supported in exactly the same way as any other Cisco product on the price list. The reseller makes relatively more margin, it's recession friendly and environmentally friendly," he added.
Alongside pricing considerations, Comstor added that refurbished gear could help customers avoid spending on other parts of the ICT estate by keeping existing applications running, as well as speeding up the procurement process.
Your claim that often used equipment is "counterfeit or stolen product injected into the secondary market" couldn't be more wrong.
I've been active in the used market for over 15 years and take steps to insure that products are never in the manner you claim. Most dealers are honest and subscribe to the same policies.
If Comstor has decided this course of action, then they must have analyzed the used equipment participants and found most to be of high caliber and equipment to be honest as well.
It's easy to see why Comstor would take this action as margins for new gear only get slimmer and in some categories, not worth the effort.