As a networking hardware user or network admin, you may not even know how to get started in looking at buying used Cisco.  I’ve compiled this resource to shed some light on the second hand market for Cisco hardware.

Who are the main players in the used cisco market?

• Cisco Authorized VARs

   

  by Vibrant Technologies

  Cisco’s authorized channel partners have access to Cisco’s pool of refurbished Cisco gear. If you’re currently buying new hardware from a partner then you can also buy certified Cisco refurb gear from these same resellers.

  This pool is limited to what Cisco currently has available (typically much less than the open market) and discounts aren’t always that great, but the product is certified by Cisco.

  Cisco Authorized Refurbished equipment (aka “Cisco reman”) is immediately eligible for maintenance and includes all of the typical licensing. Packaging is similar to new Cisco except that it will include stickers signifying that the hardware has been factory refurbished.

• Independent Cisco Resellers
  AKA brokers, dealers or remarketers.These resellers are not authorized to sell new Cisco, but instead sell equipment that they’ve acquired via lease returns, liquidations or end-user trade-ins.Inventories can far exceed what you’ll find in Cisco’s pool and pricing is much, much lower than new in most cases (up to 90% off new).Used Cisco from independent resellers will include a warranty (from the reseller), but typically has to be recertified by Cisco and licenses need to be acquired in most cases to legally use the equipment and place it under maintenance. Packaging is normally equivalent to new quality, but is sent in plain brown boxes and anti-static bags rather than Cisco labeled packaging.

  Buyer’s choose independent resellers of used Cisco for benefits such as immediate availability and of course the massive discounts.

  Our firm, Vibrant Technologies, fits in this category.  (Request a quote)

• Auction Sellers, User to User and Scrap resellersIndividual Cisco users bring their wares directly to market via auction sites or forums such as eBay, Craigslist and Yahoo Auctions.There is a growing amount of Cisco equipment on these sites, but most of the listers seem to be resellers, not users.  You’ll also find a lot of scrap resellers who can’t test the equipment and in other cases – outright scammers. Prices are all over the board.Quality, trust and support are serious concerns here. You want to be sure you don’t get bad equipment or completely scammed. Packaging can really leave something to be desired. We’ve seen actual popcorn (buttery!) used in place of packing peanuts and deli meat bags used to pack memory. Not to mention that the boxes are so thin that it’s amazing more products don’t get damaged.

How soon do Cisco Routers and Switches become available Used?

2-3 Months after a product has been released new, you can typically find it used.

This may come as a surprise to some who assume you can only find 2nd or 3rd generation hardware used.

Due to bankruptcies, mistaken purchases, or demo units, it is possible to find the latest and greatest as well as EOL equipment.

Is Used Cisco the same as Gray Market Cisco?

No, Gray Market product is equipment that has been purchased new from another country in order to be sold in a region where the manufacturer charges more for it.  Used Cisco hardware is just previously used equipment given a second life.

If a used Cisco reseller offers you “new Cisco” it is likely gray market product.  In some cases, product is available in new/sealed/retail condition from resellers or at auction, because the end-user never got around to opening the item. These products should be referred to as “unused” instead of “new” since ownership has transferred.

Legalities:

Both Used Cisco and “Grey market” hardware is legal to buy and sell in the United States, as upheld in the recent Kirtsaeng v Wiley US Supreme Court decision.  The First Sale Doctrine basically allows that if you bought it, you own it – and you have the right to resell it.

Laws may vary by country.  For example, the European Union generally restricts the resale of products (used or new) that were originally intended for anywhere outside the EU.  In order to resell a branded product in that region, it must be from that region, not imported.

For Vibrant, this limits our exports to Europe, but otherwise we don’t face many other restrictions internationally beyond the usual import tariffs.

What condition of equipment should I expect from Used Cisco hardware?

Just because you’re purchasing used equipment, you shouldn’t have to settle for low quality. Cisco reman and used Cisco gear acquired from legitimate brokers is typically in similar condition to what is currently in your datacenter.  Occasionally dealers will offer further discounts on “ugly-duckling” equipment that functions, but has some scratches or dings.  You should be informed of any imperfections upfront.

At Vibrant, we like to think of your networking equipment as basic plumbing.  It’s not that hard to get it right, and you don’t want to spend a lot of money on it.  We help companies save money on their infrastructure, so they can invest in what really matters – people and applications that drive ROI for your business.

How are prices set on the used market?

The used Cisco market is an open market where equipment is traded as a second-hand commodity. Prices rise and fall based on perceived availability and demand in the marketplace.  The best way to compare prices is to do so against other resellers because comparing against list is completely arbitrary.

Depending on the model or feature, discounts can range from 30 to 90% off list. See “List Prices and Discounts for Used IT Hardware.”

When is the best time to buy?

Give yourself time to check out all of your options, but also know that used resellers can typically ship overnight if you’re in a pinch.  End of month, end of quarter and end of year are great times to buy as sales reps aim to meet their quotas.

How do I confirm that I’m working with a quality reseller?

1. Do your due diligenceCheck references, confirm years in business,etc…
2. Check associationsFind out if they’re members of industry associations like UNEDA or ASCDI or if they’re in the BBB.
3. Get a warrantyAny quality reseller should offer warranties. End-user clients often get 90day to one year warranties on used Cisco (from the reseller). Make sure you get at least 90days.
4. Ask QuestionsFind out if the reseller has Cisco certified techs and ask about recertification, licensing and manufacturer/reseller pre-sales and post-sales support policies.
5. Get Credit Terms (if you can)Corporations of any decent size should be able to negotiate payment terms of up to 30 days.This basically gives you the opportunity to try before you buy. If the equipment doesn’t meet your standards, you can return it without trying to recover your payment.

Who buys Used Cisco?

Fortune 500s and SMBs alike. Individuals, resellers, government agencies and manufacturers, too.

I’ve personally had countless conversations where somebody says they would never buy used, but then we talk about certain scenarios and they see a fit.  Test environments, disaster recovery, training labs, trade shows, etc… Once they see the quality, support and savings, we normally flow into a production scenario from there.

And even those who don’t buy used Cisco end up finding value in having a Used Cisco reseller like Vibrant to sell their excess or decommissioned equipment to.  We can offer you cash to save on your next investment and usually beat any trade-in offers from the manufacturer or VAR.

Please contact us if you have Networking, Storage or Server hardware to sell.

Should you consider used Cisco?

You have to decide for yourself, but it is definitely worth getting a quote or two so that you can make an informed decision.  Some users start with training or demo hardware and then move to development or production units as they gain confidence in refurb quality and savings.

For more information, please email sales@vibrant.com or call 952-653-1700.

(this article was originally published at Network World’s Cisco Subnet and has been updated for 2013)

Vibrant finally made a Harlem Shake Video (and we’re sorry internets).

As a reseller of remarketed servers and data center hardware, we looked around and were surprised at how few IT Hardware companies had made one, so we thought, why not? Plus, it wasn’t a bad time. Anytime you get to dance on a server rack dressed as a gentleman luchador, you’ve got to do it, right?

Below is a collection of IT hardware companies who have done the Harlem Shake.

Vibrant Technologies

Brocade

EMC

Intel

Rackspace

Tech Data Cisco Team

That’s some pretty (wonderfully) terrible Harlem Shake action all around, and we’re glad we could take part!

So you’re considering buying remarketed IT equipment (servers, routers, storage, etc.) but you’re not quite sure what to watch out for. Buying used IT gear is a great decision for stretching your budget but there are some questions you might want to ask when choosing a vendor so you get top-notch quality equipment and don’t get burned.

1. Are you getting the real deal?
Is the quoted equipment true manufacturer-branded hardware? (Example: Is the memory IBM or some 3rd party knock-off?) This is HUGE when you try to add hardware to existing maintenance agreements. No 3rd party hardware is typically supported. Sometimes dealers will try to slide 3rd party components into system quotes and hope you won’t notice – or worse yet, they won’t even mention it. Be sure to ask.

2. Who exactly are you dealing with?
Is the outfit you’re buying from a legit company? Check their website, Google the company name, ask for references, referrals and current customers. You might even do a map search of their address just to see if they’re in an office building (and not some random residential address).

3. Is there a warranty?
What happens if the products show up and don’t work, or cause system errors? Can someone troubleshoot it? Is there tech support? Who do you call? How fast can the problem be solved? A solid warranty as well as a strong technical staff are great indicators of a company that is proud to stand behind its products.

4. Supplier or Broker?
Do they have complete knowledge of the products or are they just buying from other dealers, and don’t own it? Anyone can sell parts, just check eBay. But you will want a company who will warranty products and guarantee work done. These companies own large inventories of products and quality check everything in their own technical labs. Shipments will arrive quicker, cheaper and with greater peace of mind from stocking vendors.

5. Too Good to be True?
If it seems too good to be true, it often is. When offered unbelievable low prices, something is being sacrificed. Is it quality? Authenticity? Be sure to find out and get it in writing (something to the effect of “the following product is in perfect working condition and guaranteed to be IBM original”). There are some great deals on refurbished and used equipment, but sometimes these truly are too good to be true.

Michelle Clough is an account executive at Vibrant Technologies working with clients from various industries and has over 10 years experienced in the remarketed IT industry. Contact her with further questions or if you have IT equipment to buy or sell.

email: mclough@vibrant.com
phone: 952-653-1709

Two weeks ago, two of our best techs, Erick and Kris, informed me that Slashdot’s 10th Anniversary was upon us and that we had to host a regional anniversary party for them. Of course I agreed, because all of the following are awesome: Erick and Kris, Slashdot, Slashdotters and Parties.

I reeled in approval from the top to throw some money at this and put the techs in charge of planning and organizing. Last night we had the party here and I think the results were pretty great.

(Lindsi rolled all the photos and videos into a great montage.)

So, what does a Slashdot crowd consider fun and entertaining?

1) Smashing old EMC, Sun, HP, IBM, Cisco and Brocade gear with a sledgehammer, while offering up witty commentary.

2) Playing Guitar Hero and old video games on large projector screens.

3) Mingling with like-minded techie-types and gamers that are proud to be geeks.

4) LOLcats (which were on the drink tickets, walls, cake and who knows what else).

5) Geek Facepainting (OK, the idea of that was funnier than in reality. Only two people got logos painted on their face, Slashdot and Apple, but we were ready to also do Firefox, Tux and Redhat logos).

6) Hot Taco bars, beers and mixed drinks (who doesn’t?)

7) Singing Happy Birthday to a website (my wife really laughed at me for that one).

Thanks to all who came, we had a blast and loved meeting everybody.

Happy 10th Anniversary to Slashdot!

Spaghetti Cabling that would make a fully-grown sys admin cry.
or… Cable management is for wimps.

Most network and system administrators like a nice tidy cabled cabinet of servers and network equipment. Sometimes it just doesn’t work out that way. The following are some of my favorite images of nasty cable messes.

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A Cable Mess of Beauty
photo by: Cormac Phelan
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Racks and Racks of Spaghetti
photo by: Andrew McKaskill
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Cable-Bound Racks
photo by: dM.nyc
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Good Old-Fashioned Telephone Wire Mess in Bangkok
photo by: Nurmi
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Cable Mess (un)Managed
photo by: gruzuk
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The Spaghetti Man on Sixth Avenue, NYC
photo by: Ken
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Spaghetti Cables on the CMS Tracker at CERN
photo by: Richard Brauer
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Colorful Cable Salad
photo by: Zenji
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A Fine Mess
photo by: BRphoto
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Cable Mess Frustration
photo by: Jonathan Arehart
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Rat’s Nest Cable Mess
photo by: n8foo
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Sound Stage Cables get messed up too
photo by: Laura A Watt
==============================

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Cable Chaos
photo by: VespaGT
==============

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LOPSA’s Sys Admin Horrors

LOPSA (League of Professional System Administrators) is a terrific organization that Vibrant wholeheartedly supports. Afterall, they host National SysAdmin Appreciation Day and also came up with a terrific photo set of Sys Admin horrors including the cable messes below:

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DO NOT TOUCH ANY OF THESE WIRES!
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Burnt Spaghetti
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Spaghetti Cable Hurl
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Network Cables or Silly String?
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Patriotic Cable Mess
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Network Floss and Modems
(rumored to have run the dialup access at an old ISP)
=======================

Any good ugly cable messes I might have missed?

Robert Davie, Founder of Venderis was gracious enough to answer a few of our questions regarding his revolutionary new End of Life IT Asset Recovery software solution, Venderis Software Solution Suite.

“Armored trucks, employee background checks, the issues that relate to sending systems off-site are all eliminated by our solution.”

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In a nutshell, what does Venderis do?

“I need more than a nutshell to describe Venderis… but here goes. Venderis has sort of a dual role. It reduces the risk of data stored on PCs from escaping to the public domain, while at the same time it increases the resale value of PC assets.

Venderis accomplishes this dual role in several ways:
1. By erasing hard drives
2. By restoring the original Operating System
3. By running diagnostics important to the resale community
4. By discovering and auditing the level of hardware details necessary for resale

And probably most importantly, Venderis performs its functions across a WAN, LAN or enterprise network thereby making these end-of-life processes automated, fast and easy.”

How did you come up with the idea for Venderis?

“There is an interesting story behind this. Three of us went away to the North Carolina coast to brainstorm and discuss a several ideas for processes that occur at the end of the life of PCs. Utilizing my experience in the used computer industry, taking advantage of an employee’s strengths, and adding the objective viewpoints of a Harvard MBA, we set off to the beach for a brainstorm session.

After using an entire roll of whiteboard paper, a complete set of magic markers, and exhausting our brains, we came up with five problem areas that needed desperate attention, and that could be automated through software application.”

What is your background in the IT industry?

“I have been in the IT asset remarketing industry since I graduated from college, with the exception of a short stint of three years at IBM, almost 20 years altogether. As the founder of ITParade.com, I was responsible for creating a large marketplace for buyers and sellers of used computer and networking systems.

Over 1500 computer resellers participate in the ITParade.com marketplace and my interaction with them generated unique insights into the inner-workings of the industry that allowed me to launch Venderis.”

Who can benefit from using the Venderis Asset Recovery Software Solution?

“Fortune 5000 companies, large organizations, IT Asset Remarketers, Recovery Specialists. Anyone who is concerned about cutting costs at the end of life of an IT asset. Anyone who is concerned about chain of custody of sensitive data contained within hard drives. Anyone who needs to maximize the resale value of PC assets.”

What is your current go-to-market plan?

“We intend to leverage our network of over 1500 IT resellers developed over a 10-year period at ITParade.com. These relationships represent the leading resellers in the United States and around the world. Venderis will support an initial group of 12 leading resellers, then a larger group of resellers, through an extensive and comprehensive marketing and support system that includes marketing materials, co-selling, Live Support, On-site Training, On-site Support and Webinars.”

Security is a hot-button issue in the asset recovery world, does Venderis help address these concerns?

“Security is an extremely important issue. It was one of the driving factors in the development of Venderis.

Venderis can guarantee that sensitive data stays within an organization by providing the ability to wipe 10 or 10,000 systems on-site and simultaneously. The chain of custody stays with the end user of Venderis, no third-party erasure is required and therefore absolute safety of sensitive data is guaranteed! Armored trucks, employee background checks, the issues that relate to sending systems off-site are all eliminated by our solution.

Finally, there is no limit to the number of Department of Defense-standard erasures Venderis can perform.”

———————————————————————————

Vibrant is proud to be a tier1 reseller of Venderis. We’ll be working the Venderis booth along with Robert at the upcoming E-Scrap IT Asset Recovery Conference where they are a sponsor. If you’re in the Asset Recovery business, please stop by our booth and introduce yourself, meet Robert and learn more about how Venderis can benefit you and your clients.

The Minneapolis/St. Paul Business Journal’s 9th annual “Best Places to Work” publication came out on Friday, and Vibrant ranked in the top 20 small businesses. It’s a great honor to work for a company that is even considered, and especially for one of the winners.

I love working for Vibrant – and I’m quick to share stories about my time here with friends or family. The “perks” of working for an edgy, innovative company range from Video Game Happy Hours to themed summer and holiday parties – but while those events provide occasional entertainment, the fun part is the bonding that takes place between employees.

It’s true when they say a work environment depends heavily on the people in it. Each person at Vibrant is passionate about what they (we) do (and who we’re doing it with), and I believe that’s what makes us one of the best places to work.

The Playstation Blog has drawn the curtain strings a salivating tad to show off their very impressive server cluster of rackmounted PS3s that run it’s multi-player game Warhawk.

The Data Center Knowledge blog keanly observes:

The powerful processor is no stranger to the data center, as it is also being used in IBM System X blade servers and System Z mainframes.

Players of Warhawk on Playstation 3s take advantage of a server method they call IGS or “Integrated Game Server”, which is essentially distributed computing. This allows players to take advantage of PS3s nearby to reduce latency, but Sony also wanted to have dedicated racks of PS3s available to gamers as well.

It is this type of innovation potential which made us choose the PS3 as one of the ten servers that changed the world last year and it’s beginning to fulfill the prophecy, at least in the gaming world.

I would love to get my hands on one of these rackmount kits and rig a PS3 into one of our server racks for our next in-house video game happy hour.

OK, maybe not quite yet… but Pandia Search Engine News is reporting that Google runs more than 1 million servers.

Pandia cites a Gartner analyst from the fair elven lands of Norway (the article is in Norwegian, so we’ll have to take their word for it).

Google reports that it spends some 200 to 250 million US dollars a year on IT equipment. We know that Google make use of a large number of cheap off the shelf servers using open source (and free) LINUX.

If we say that Google spends 900 USD on each machine, and the same sum on storage and peripherals, it is a fair guess that Google uses some 1 million servers in its data centers.

———————————————————————————-

Pandia goes on to speculate that Google likely installs 100,000 new servers per quarter in datacenters around the world. That would place Google as the 4th largest server producer in the world after HP, Dell and IBM.

But does Google really have 1 million servers? I’m not so sure. The logic above is fuzzy at best and others have estimated they only have 450,000 systems. My guess is reality falls somewhere in between these impressive numbers.

I wonder how many servers are purely dedicated to facilitating searches for LOLcats?

We know that Google primarily uses white box linux-based server models and blade servers, but should they ever need memory or CPU upgrades, Vibrant sells a wide range of Used Servers. Our sales reps hear “1 million servers” and can’t help but drool.

Earlier this year, Nat Torkington of the O’Reilly Radar blog, asked “Is ‘Open Source’ Now Completely Meaningless?”

Nat is ranting about firms who exhibited at the OSCON Open Source Convention this year who probably didn’t fit in. Nonetheless, is the clear definition of open source deteriorating? Is “Open Source” more of a way of thinking than a rigid software term? Let’s pretend for a minute it is, and explain how Vibrant’s line of used servers could be considered open source.

1. We don’t care what OS you load onto it once you’ve gotten it… Linux, Windows, AIX, Solaris, go for it!
2. Furthermore, we don’t care which manufacturer you want to buy, we carry Sun, HP, IBM and Dell. If you want to add 3rd party drives or memory, we’ll do that too!
3. Finally, we don’t lock anybody into set server configurations. Instead, we’ll custom configure a system to meet their needs.

——————————————————————————

OK, so can we respectfully call our used server products “open source”?

Nah! It just doesn’t feel right to use the term when it comes to hardware.

(But we will custom paint a server if you prefer your Big Blue IBM server in orange. That has to count for something, right!?)