5 Reasons Why Successful Executives Invest in Pre-Owned
IT Hardware to help Increase Their Bottom Line

Introduction
To stay ahead of the competition, executives are constantly challenged to invest in the latest technology equipment without adversely affecting their bottom line. A CIO.com article dealing with pre-owned IT hardware found that “more than three-quarters (77%) of survey respondents said that their organization purchased secondary market IT equipment.” Successful executives realize the benefits of purchasing pre-owned IT equipment, including lower cost of ownership, speed of delivery and system performance. In this paper we will outline why the best value for your company’s dollar lies with pre-owned computer equipment and how it allows companies to do more for less.

One – Total Cost of Ownership (TCO) is Reduced
Savvy executives know that pre-owned computer equipment offers significant savings off the price of new equipment, while still maintaining the same quality standards associated with new equipment. Pre-owned equipment also does not depreciate, something that occurs within one to three years with new equipment, and thus retains its remaining value for the life of the hardware, helping companies achieve a better overall return on investment (ROI). These lower initial acquisition costs, along with reduced maintenance needs and contracts, combine to provide companies with a reduced total cost of ownership (TCO).

Two – Performance That Drives Business Improvement
The most often-used objection to pre-owned IT equipment is that it is unreliable and offers poor performance. What many executives do not know is that the general industry timeline for a server to fail is within its first 48 hours of operation. With pre-owned equipment, this risk is greatly reduced because it has already been tested and used. CIOs who initially turned to the secondary market for cost savings find that their pre-owned hardware performs at virtually the same level as new equipment and that the increased price of new equipment does not justify the expense. Pre-owned equipment vendors are also able to offer more configuration options, such as larger hard drives and higher capacity memory, helping companies customize the equipment to their specifications. In addition, most vendors employ certified product engineers who put their pre-owned equipment through a rigorous testing process to ensure flawless machine performance and satisfied customers.

Three – Compatibility with Their Operation’s System Needs
Compatibility with existing systems is a benefit enjoyed by companies that purchase pre-owned equipment to replace existing equipment. In their quest for the latest and greatest technology, many executives do not realize the significant staff training and downtime associated with a move from their current hardware and operating system to completely new technology. Pre-owned equipment allows companies to get the technology they need without necessitating a move to a new operating system. This procedures a minimal learning curve for IT staff already familiar with a particular server to get that system up and running and reduces downtime due to system modification and configuration, which is something many companies experience when introducing new technology that does not mesh with the current server environment.

Four – Flexibility and Choice to Personalize Equipment
Pre-owned equipment offers companies the unique opportunity mix and match equipment from multiple manufacturers, enabling them to get solutions customized to their needs. Pre-owned equipment vendors stock hardware from most major manufacturers, from hard-to-find late versions of equipment to the newest technology, allowing companies to choose equipment from all available options that best fits their needs. Unlike new equipment, which is often sold in bundled packages according to manufacturer, pre-owned equipment sellers are generally “vendor neutral,” with no allegiance towards a particular brand. Executives have come to realize that this method of buying gets them the equipment they need that is most compatible with their existing environment. In addition, pre-owned equipment often comes with attractive financing options such as leasing and rentals.

Five – Speed of Order Execution and Implementation
Executives purchase IT equipment when there is a specified need, so the faster they receive this equipment the more quickly their needs are fulfilled. Pre-owned equipment vendors have an inventory of equipment in stock, so that when a machine is purchased their engineers can go right to work customizing it and, in many cases, can ship the merchandise in as little as 24 hours. New equipment often takes weeks or even months to arrive from the manufacturer due to equipment backlogs and long production times. The ability to get needed equipment in a short amount of time contributes to overall improved company production and increased profits.

Summary
Successful IT executives have discovered the benefit of pre-owned equipment to their bottom line. By purchasing pre-owned equipment at significant savings off the price of new equipment, companies are able to reduce their Total Cost of Ownership and, because this equipment has already depreciated and retains its remaining value, are able to simultaneously boost overall Return on Investment. Executives are also finding that pre-owned equipment offers the same reliability and performance as new equipment, with added customization options. Being able to get pre-owned equipment that is compatible with their current systems has helped many executives eliminate costly staff training for new systems and also reduce network downtime. This, in combination with equipment suppliers ‘vendor neutral’ approach to selling equipment allows companies to mix and match systems to get the right fit for their environment. Finally, the ability of secondary IT market equipment suppliers to deliver equipment quickly, efficiently and in top condition allow executives to focus their attention on other tasks and contributes to better overall company production.