Used Equipment Versus New:
There is so much used hardware available now - and so much emphasis on cutting costs - that the secondary market is no longer a niche business. Nor does it appear to be a transient, post-boom phenomenon. Experts point to four factors to support this assertion:

1. Chips don't wear out like automobile engines, meaning technology will function for years to come.

2. The sheer volume of hardware production and appetite for consumption created during the late '90s can support the secondary market almost indefinitely. Also, consider the startup, MicroCast, which earned $800,000 in revenue between 1999 and 2000, filed for Chapter 11 in late 2000 and left behind hardware valued at $40 million.

3. Wholesale prices are vastly more attractive than retail costs, and they're a prudent consideration in a tight economy. Once companies get a taste of high-functioning, lower cost equipment, retail prices will look ridiculous.

4. The proliferation of services supporting the secondary market are making it easier and easier for buyers to participate. Many CIO's already can't imagine not having the option to buy used.

This is a complex market. You can buy from brokers or tweeners or vendors, or even on eBay. There are license transfers, inspection fees and third-party maintenance options. There's disposition to think about, such as how do you throw this stuff out without running afoul of the Environmental Protection Agency? BBC is well positioned to help your customers with all issues related to secondary market transactions. Please consider:

a. We've been in this industry for over 18 years (Which means it goes without saying we've got proven acquisition experience.)

b. Our BBCertified program is unmatched.

c. We are a complete service provider including customizations of productions, secondary maintenance programs, post-sales support and partnerships.

d. BBC can customize our programs to meet your needs, including trade-in/trade-up programs, co-marketing and co-branding.

The Secondary Market Language:
Just learning the lingo can be a chore (see 'The Secondary Market: A Glossary, "below"). But as CIO's of enterprises both large and small are currently learning, the rewards for diving into the secondary market are phenomenal.
The Secondary Market: A Glossary

• Bubble gear: Gear from bankrupt companies.
• Distributor overstock: The clearance rack. Equal-to-near-new gear sold cheap to fulfill quotas.
• Equal-to-new: Lightly used hardware.
• Floor models, demos or lab gear: Hardware used for testing or demonstration but never deployed.
• Like-new: Product that is unused that may (or may not) include all original packaging, manuals, etc. of the original manuals, cables, etc. "New" equipment can in somes cases be 1, 2 or more years old.
• Off-lease: Hardware resold after a lessee returns it.
• Refurbished or refurb: Slightly reworked gear, for example, fans or power supplies replaced before resale.
• Remarketed: Refurb or remand gear being resold by the original vendor.
• Used: General term for most secondary hardware.
• Vintage: Out-of-production hardware such as VAX systems.
• White box: Clone equipment. Not truly secondary market but lumped in because of its low price.

For more information on how your company could benefit from this progam, contact:
Perry Leenders
1.800.272.2650 ext. 12
pleenders@bbcusa.com