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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.

Tell us more about your plans to build your business further in the next 12-36 months.
As shared earlier, we are keen to further establish our regional reach. Currently our operations in Asia contribute to 20 percent of NHR's international revenue which we look to further propel in the coming years.

In the next 12-36 months we will be focused on expanding our product and support reach. Singapore will continue as the regional hub as we move into new markets which include the Philippines, Vietnam, Indonesia, Malaysia, China and Taiwan.

How are your consulting services packaged? Are they only available to buyers of equipment from you?
We offer third party diagnostic consulting services to any firm that is interested in looking at alternative procurement which may include a hybrid combination of both new and refurbished networking equipment. Through our consulting services at NHR we aim to help our customers better understand the lifecycle of their networking equipment to make educated decisions on when and how to upgrade.

Our consulting services come without strings attached so they don't need to buy from us. What we try to do during the consulting process is raise awareness that enterprise equipment is built to last 15-45 years (depending on the equipment type) but many companies toss them out when they're told to upgrade - very often within 5-6 years of their purchase. Sometimes all you need is to replace a switch or components of the networking infrastructure rather than the entire system.

We also introduce them to the 25-75 rule which we often find catches business owners unaware. Generally 25 percent is spent on the actual infrastructure itself like routers and switches. The other chunk, 75 percent, is spent on maintaining and supporting the equipment. That's a big piece of the pie!

During the consulting process we also introduce our service and maintenance plans to help keep that 75 percent in check. Plans like NetSure provide our clients with 24 by 7 by 365 global technical support by Cisco-certified network technicians monitoring, proactive provisioning and rapid incidence response sometimes helping to reduce costs by 50-70 percent.

Through our consulting services we help companies reduce unnecessary network upgrades by introducing hybrid solutions and providing them options to reduce their service and maintenance budget. We help companies save money and we educate them during the process.

What prompted your decision to offer consulting services?
Consulting services has always been a part of our customer offerings from a vendor diagnostic platform. We believe in order to effectively advise our customers, we need to understand their current infrastructure in place before we can make recommendations.

What are the top considerations of customers who come to you for help with their network infrastructure needs today?
In order to gain greater insight on our customers, Network Hardware Resale recently surveyed more than 550 customers across nearly 50 countries to better understand the implications behind network purchasing decisions. The top purchasing decisions in order of priority included network expansion, upgrading old equipment, followed by new capital investment and the need for equipment no longer available from the traditional channel.


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