The IT used-equipment
marketplace is currently experiencing the calm before the storm –
companies are holding on to their IT equipment for longer given the
current economic climate.
As a result, we are seeing a slight
lull in the amount of used equipment on the market, with only basic
enterprise equipment being sold.
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A large volume of equipment is
expected to come through on the back of the banking and financial
industry collapse in the next few months, which is likely to flood
the market and push prices through the floor. Equipment affected by
this will include all enterprise networking, servers of all types,
desktops and PBXs.
The IT equipment resale market is
generally a difficult area – values can be very low as a percentage
of cost within a short time of purchase.
Manufacturers are doing their best
to control and limit the used equipment market, having had their
fingers burnt in the past. However, there is no consistent pattern
of what will sell well and what will not.
Generally, Cisco is considered to
be the top tier in terms of used values, and this should remain the
case in a downturn, with any price erosion lower for this equipment
than others. Demand for used network equipment remains within the
UK and Europe, with desktops going to Asia and Africa. After a
certain point, often when the equipment reaches about five years
old, there is little demand anywhere, and in a downturn this kit is
likely to be scrapped.
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By GlobalDataThe issues affecting the resale
market are linked to the economy at large – though perhaps an
industry collapse such as finance has a greater impact than a
retail or construction downturn, for the simple reason that more
office and networking equipment is required for this industry to
function.
The author is communications
and technology appraisal specialist at GoIndustry LoveBid
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