Saving in the Secondary Market (Part 2)
Challenges Similar to Those of Private Sector
Government agencies face many of the same challenges as the private sector, although there are unique issues facing state and local governments, whose budgets may be more limited than their colleagues in the federal government.
Keeping up with technology and ensuring the operational efficiency of legacy systems are common issues. In addition, agencies at all levels of government face challenges in upgrading support needs due to budget restrictions.
To combat these issues, agencies now are turning to the secondary market to buy up-to-date technology at a more favorable price. Depending on the equipment requirements (switches, routers, phone systems, etc.), spending less on secondary market equipment reduces costs and increases the return on investment, because the same functions can be performed on either refurbished or totally new systems.
Procurement officers are charged with finding the best quality product at the lowest possible price, and the secondary market can facilitate that decision. After all, a router is still a router, whether it is brand new or refurbished. Unlike some software products, hardware such as routers and switches can have a shelf life of 10 to 15 years.
As manufacturers bring their latest products to the market each year, not all new features will be relevant to many businesses and agencies. If your agency will not benefit from the newest bells and whistles, purchasing new items may result in spending more than necessary. In fact, agencies that do not require latest-generation equipment can realize cost savings of 50 to 95 percent by buying in the secondary market. Pre-owned equipment may be not only a cost-effective alternative but also a viable part of most agencies’ long-term networking technology roadmaps.
Written by Joe Serra:
Original URL: http://www.gpnews.com/Issue/Article/70500/Issue
