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When refurbished is better than new

F.Y. Teng | June 26, 2012
Network Hardware Resale's value proposition and its continued growth across Asia.

Michael Lodato, Senior Vice President of Sales and Marketing, Network Hardware Resale

We interviewed Mike Sheldon, CEO of Network Hardware Resale (NHR), way back in 2009, when he came by Singapore to check up on his crew, which had set up shop round these parts just two years earlier. He told us about how NHR had grown from being a "very small" reseller of IBM products in Southern California to being a leader in the global secondary market for networking equipment that saw annual revenues crossing the US$200 million mark.

Recently, NHR's Senior Vice President of Sales and Marketing Mike Lodato, stopped by Singapore and gave us a rundown of what his company's been doing in Asia Pacific.

Talk about how your business has grown in the following geographies in the past two years, and indicate how large a portion of your global business each represents.
Prior to 2006 our APAC client base was being managed from US and EMEA operations. In 2007, NHR established a regional presence in Singapore and in our first year alone, with only 4 APAC staff our revenue was US$7 million.

After 6 years in the market, our presence has increased from 4 employees to more than 50 with market specialists focused on 8 major markets in 11 languages. As a region, Asia today generates US$30 million in revenue and accounts for 13 percent of our global earnings. Since 2007, we have grown by 300 percent and have helped customers save more than US$100million-on hardware and maintenance if they had purchased directly from the OEM.

2011 was also by far our most successful year with an overall revenue growth of 25 percent. Focusing on our Asia Pacific operations, our key markets are Singapore, Hong Kong, Thailand, Australia, Japan, New Zealand, Korea and India. In addition to selling refurbished and new networking equipment, our services in these markets also includes 24x7 technical support, onsite technical support, guaranteed next-day replacement or 4 hour replacement.

Here are the statistics for some of our locations.

Our regional hub is strategically located in Singapore giving us access to SME's and Fortune 1000 companies with established headquarters. Much like their western

counterparts, there is a need to contain costs while continuing to grow infrastructure and stay competitive. Singapore today contributes about 22 percent of our APAC revenues and has seen 20-25 percent growth since last year.

Thailand is developing at a fast pace. With businesses growing at a rapid speed there is a need to grow incrementally while keeping costs down. Our services provide certainty and guaranteed equipment performance in an otherwise unreliable marketplace for resold equipment. In Thailand we have seen about 35 percent growth in the last two years.


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