A Global Exchange for Quality Technology Products
April 20, 2009

Recession Drives Demand for Used IT Hardware

As businesses tighten their belts in response to the recession, organizations are identifying what network platforms need additional functionality as cheaply as possible. Increasingly, they’re opting for risk-free used networking equipment as part of extending the life span of their network. Used solutions are a viable financial solution because used equipment is cheaper and easier to deploy than going through a lengthy approval process to procure a new equipment solution.

Demand for network system enhancements for current projects is on the rise due to the collapse of the economy. Despite the recession, demand for additional equipment into 2009 will continue. The market for used network products is a growing segment of the larger IT industry. New equipment purchases in this economy require large investment upfront—both the cost and risk are significantly less for used IT products.

Companies urgently seeking to better coordinate increasingly scarce resources across projects, used network equipment implementation can get the functionality benefits very quickly. Many organizations are experiencing a tightening of large system purchases, used equipment as a viable option to take over maintenance and help deploy a new system. Many needed achieve products at a lower cost, critical to fulfilling that financial goal.

Customers are looking for a different type of solution that’s more affordable, which has low risk and doesn’t require a big investment to maintain networks in house. The economic crisis is an accelerator for the used equipment market. Businesses need low cost equipment to get more productivity out of existing resources and to better validate all IT projects.  Pre-owned network equipment is compelling to companies because IT budgets are tight.

Meanwhile, enhanced functionality designed to address IT finanical leaders’ needs during a recession for more financial leveraging and the ability to allocate pre-owned equipment across projects. The recession has so many companies wary of making major investments in new equipment that some are turning to used networking products for flexibility and allows them to only pay for the incremental products as they need it, and that could be just for the duration of a given project.