Buy second-user IT hardware to make list-price savings

CIOs and anyone involved in IT procurement should assess the benefits of leasing and alternative financing over making capital purchases for new IT equipment, software and services. Cliff Saran looks at the options.

CIOs may also consider buying second-user systems. For instance, Comtek says refurbished Cisco networking products offer savings of 60% to 90% from list price.

"Since last year we have doubled our workforce," says Askar Sheibani, CEO of Comtek. This is because the company has been seeing growing interest in refurbished equipment, due to the effects of the economic downturn and the waste electrical and electronic equipment (WEEE) directive.

Askar Sheibani says: "There was a perception that refurbished products were of poor quality. But repaired products are actually better because when they go through testing, we may find certain components are weak. When these are replaced we are able to extend the life of a product for many years." Comtek gives a one-year warranty on its refurbished products. "Global integrators are now seeing repaired products are not only cost-effective, they also improve quality."

Comtek has benefited from running second-user systems itself. "We reached an agreement with the administrators for Nortel, involving one shipment of equipment from Nortel's Lab facility, which was destined for electronic waste." Comtek purchased eight 40 containers full of 300 tonnes of Nortel products. Comtek used the Nortel equipment to built a Nortel Lab, where it repairs GSM and optical communications products.

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Top five IT finance and asset management issues - 6/7/2011 - Computer Weekly