Used Cisco

Nov 13, 2007 at 00:57 o\clock

Healthcare Organizations Find Technology Efficiencies through Secondary Market (Part 2)

 

Gains in purchasing power are realized without sacrificing equipment quality and functionality

 

By Joe Serra

The secondary market advances

Increasingly, cost-conscious materials management executives are realizing the benefits of the secondary equipment market, from refurbished medical devices to IT infrastructure. Gartner Group estimates that the secondary market just for networking equipment and accessories has grown from a handful of providers to more than 400 companies with estimated collective annual revenues between $2 and $3 billion. As cost pressures are expected to continue in the healthcare space, capitalizing on this market will become even more important to the development of a successful equipment replacement strategy.

Unlike certain software products, hardware such as routers and switches can have a shelf life of 10 to 15 years. Thus, including quality refurbished networking equipment in replacement strategies can meet technology needs while producing savings between 50 and 95 percent -- without sacrificing quality or functionality. Telecommunications equipment is no different.

Despite the long life potential, some manufacturers and resellers encourage hospitals to upgrade their systems every five years. However, wise purchasing officials know that not all new features will be relevant for every purchaser. If your facility will not benefit from the latest features attached to brand new switches, routers or phone systems, purchasing new may be unnecessary. Before making a purchasing decision, analyze your organization’s IT infrastructure and telecommunications needs. Do you have special requirements that make new equipment a necessity? More often than not, high-quality refurbished equipment is a viable and cost-effective alternative.


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