Companies maximizing value with trade-in opportunities on the secondary market

With the ever-increasing demand for improved network performance, companies are opting to leverage the value of their existing networks for trade-in value on the purchase of newer equipment. While some companies upgrade to new technology, others have found compelling value in the secondary market. Until recently, hardware manufacturers haven’t offered trade-in incentives for older technology, which pushed away companies looking to salvage any residual value on older equipment.

In an effort to encourage both end-users and channel partners to upgrade to newer technologies, Cisco Systems launched their TAP (Trade-in Accelerator Promotion) in and TMP (Technology Migration Program), after realizing the need for a compelling trade-in credit which can be applied to new purchases. While the move was seen as an effort to drive the adoption of newer network equipment, many companies had already sourced trade-in opportunities with secondary-market vendors, who not only had experience dealing in pre-owned technology but also could offer a higher trade-in value. This played significantly into the number of network administrators that started looking at used hardware vendors as a way to reduce their TCO (total cost of ownership) and maximize their existing equipment resale value.

Peter Gilberd, CEO of Townsend Assets Group (TAG) a leading Cisco reseller added, "For our customers, the decision comes down to value. As long as we’re able to offer high-quality equipment at a fraction of the price of new, I see our business continuing to grow.