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Friday, September 24, 2010

Used Networking Equipment; It Ain't so Bad

My how the recession has changed the way we think and the way we buy. Not just in our personal lives, but also business spending.
My prior life was running call centers, my middle name was production. Everything was about production. Production meetings usually produced nothing and were about as exciting and watching paint dry. Honestly, it was fun when we were down because to watch people run like their pants were on fire saying “we’re losing production” and having no clue what to do except hover over the tech that was trying to figure out how to fix the issue.That lead to always spending ridiculous amounts of money on new servers,switches and everything else that lost more value than driving a new giant SUV off the lot.
Fast forward to post 2007. Unemployment is high, foreclosure is high, gas is high, spending; non existent.
Thankfully, my life as a call center Nazi is over. I do keep in touch with many of those people who are now my customers. They have servers and equipment that are at 5 or so years old and they keep buying servers and server parts and are thankful to keep that stuff running.
Dell Power edge Servers really made a huge impact on the networking market over the past 10 years or so. They appealed to the small and medium market and were more affordable than the larger enterprise class manufacturers like HP and IBM. So many businesses were buying Power Edge Servers and every 3 years, they were getting the latest and greatest Dell Power Edge Servers. It seemed to be a sign of success. You could run your equipment lease along with your car lease and in one month you could have the Expedition AND the big beefy servers. Oh what fun it was to play with those new toys.
So, now instead of spending $500,000 on a house, we’re back to $150,000. Instead of $50,000 on a car, we’re looking at $15,000 and  for our IT equipment, we’ve gone from $100,000 to $10,000.  All still with warranties, still reliable.
Suddenly, an older smaller home, a smaller used car and used IT equipment, ain’t so bad.


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