Network Hardware Resale

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Contents

[edit] Corporate History

Former IBM executive and Mayor of Hermosa Beach, California, Chuck Sheldon, founded Network Hardware Resale in 1986. Originally, the company (which started as Strand Computer Resale) focused on selling IBM computers and equipment. By the early 1990’s, Chuck's son, John Sheldon, had joined the company and the pair shifted the business' concentration to the secondary market and the resale of used networking equipment, specifically Cisco Systems equipment at 50 percent to 90 percent off the manufacturer price. This new focus led this once small, family-owned business to grow quickly and in 2001, Chuck’s oldest son, Mike Sheldon, a successful investment banker, also joined the company.[1]

[edit] Company Profile

The company has benefited from consistent leadership and vision. Chuck Sheldon continues to serve on the Board of Directors for Network Hardware Resale. Mike Sheldon is the company’s president and CEO and John Sheldon is senior vice president, Americas. Led by the Sheldon’s as well as its expanded executive team and board of directors, Network Hardware Resale continues to focus on affordable network solutions.

Network Hardware Resale has experienced consistent profitability and averages more than 25 percent growth year-over-year. In addition to Cisco equipment, the business has expanded to the resale of used Foundry Networks, Extreme Networks, Juniper Networks and other leading network manufacturers. Network Hardware Resale also carries new equipment through authorized reseller relationships with Force10 Networks, and Riverbed Technologies.

In 2007 Network Hardware Resale was included on the Inc. 5000 list of “America’s Fastest Growing Privately-held Companies" with a three-year sales growth of 163%. It was also honored in the “Inc 500” list in 2000, 2001, 2002, and 2003.

Network Hardware Resale now employs more than 225 people and has five locations internationally. Headquartered in Santa Barbara, California, Network Hardware Resale also has offices in New Jersey, Amsterdam, Singapore and London.

[edit] Customers

Network Hardware Resale’s customer base consists of more than 10,000 organizations internationally. According to Network Hardware Resale, customers represent the Global 2000, including small and medium enterprises, government entities, healthcare organizations and educational institutions, as well as some of the best-known names from the consumer and telecommunications markets. In addition, they boast some 2,000 new customers purchase from NHR each year.[2]

Customers primarily look to Network Hardware Resale to provide equipment for production use, as well as sparing, disaster recovery and testing applications.[3]

[edit] The Secondary Market

A wide variety of goods are available across the secondary market including data networking equipment. The secondary market is often confused with the gray market, but, in fact, the two are not synonymous. The gray market refers to the unauthorized sale of new products diverted from the manufacturer channel under deceptive circumstances. In contrast, legitimate secondary marketers like Network Hardware Resale openly disclose the “pre-owned” status of their equipment. Nevertheless, confusion and propaganda from manufacturers that face competition from the secondary market, as well as unethical behavior by a minority of small dealers, do mar the reputation of the secondary market. In reality, there are numerous legitimate secondary market providers of networking equipment that inventory only high-quality, genuine, pre-owned products. Legitimate providers have stringent quality assurance processes in place and work closely with law enforcement to identify and prosecute brokers dealing in counterfeit or stolen equipment.[4]

Many network equipment dealers within the secondary market are working together to eradicate counterfeit and ensure ethical business practices throughout the industry. UNEDA, the United Network Equipment Dealer Association, is an association composed of over 300 used network equipment dealers internationally. Mike Sheldon, President and CEO of Network Hardware Resale, is a founding member and president of UNEDA. The organization’s mission is “To ensure that the secondary equipment market is an affordable, safe and reliable alternative to purchasing new networking equipment.”[5] Members of this association intend to bring validity to the secondary market by promising elevated quality and integrity.

The size of the secondary market has not been unequivocally measured, however, in 2004, a leading research house told NetworkWorld magazine that the market had reached $2 billion.[6] Additionally, a 2002 survey by CIO.com revealed that 77 percent of companies contacted already had purchased from the secondary market and 46 percent expected spending to increase.[7]

Customers of the secondary market can access equipment that is used, refurbished, unused or even new-surplus, often with overnight delivery on those items. Dealers in the secondary market also offer products that have been deemed as end-of-life hardware by the original equipment manufacturer. This is useful for customers who have a tight budget, want to spare an existing network, or simply don’t need the latest feature set. Dealers in the secondary market tend to be “generation neutral,” selling equipment to best fit the customer’s budget and needs.

[edit] Products and Services

[edit] Partial List of Cisco Products

Cisco Routers: 600/700/800 Series, 1700 Series, 1800 Series, 2600 Series, 2800 Series, 3600 Series, 3700 Series, 3800 Series, 7100 Series, 7200 Series, 7300 Series, 7400 Series, 7500 Series, 7600 Series, 10720 Series, ESR 10000 Series, GSR 1200 Series, UBR 7200 Series, UBR 10000 Series

Cisco Switches: C2900 Series, C2950 Series, C3500 Series, C3550 Series, C3560 Series, C3750 Series, C4000-C4500 Series, C4900 Series, C6500 Series, C8500 Series, CWDM Series

Access Servers: AS5300 Series, AS5350 Series, AS5400 Series, AS5800 Series, IAD2400 Series

Security: CVPN3000, IDS Intrusion Detection Systems, PIX Firewalls

IP Telephony: Accessories, ATA186/188, Chassis, Gateway, IPS Sensor, IPTV, IPVC, Modules, Phone Power Supplies, UNITY

Content and Storage: Content Engines, CSS Content Services, Switches, LDIR Local Directors, SwitchProbe

Cerent Optical: 15327 Series, 15454 Series, 15454E Series, 15500 Series, 15530 Series, 15540 Series, 15600 Series, 15800 Series

Wireless: Access Points, Antennas, Base Stations, Bridges, Cables, CardBus, Mounting Equipment, PCI Adapters, Power Supplies, Radios, MGX BPX IGX, Old and Legacy Products, Accessories

[edit] Partial List of Juniper Products

Application Acceleration: DX Accelerators

Routers: E320/T320 Series, ERX Series, J Series, M5/M71/M10/M10i Series, M20/M40 Series, M120/M320 Series, M160/M40E Series, T320/T640 Series

Netscreen: NetScreen-5GT, NetScreen 25/50, NetScreen 200, NetScreen 500, NetScreen-5000, NetScreen-IDP, NetScreen-ISG

[edit] Partial List of Foundry Products

Routers: NetIron 40G Series, NetIron 400/800/1500 Series

Switches: BigIron 4000/8000/15000, BigIron MG8, EdgeIron Switches, FastIron 400/800/1500, FastIron Edge, FastIron EdgeX, FastIron Workgroup Edge X, ServerIron XL

[edit] Partial List of Extreme Products

Switches: Black Diamond, Summit

[edit] Partial List of Redback Products

Routers: SMS 500 Series, SMS 1000/1800 Series

[edit] Partial List of Force10 Products

E Series Terascale: E300 Series, E600 Series, E1200 Series

S50 Stackable: S50 Series, S2410 Series

Security Appliances: Firewall Series, Firewall Software Series

[edit] Network Hardware Resale – Equipment Lifecycle Services

  • All pre-owned equipment sold by Network Hardware Resale is covered by a one-year warranty that includes advanced hardware replacement
  • Network Hardware Resale’s NetSure™ maintenance service provides 24/7 technical support and guaranteed next-day hardware replacement at a fraction of manufacturer maintenance contract costs.
  • NetSure covers a range of network equipment from leading manufacturers including Cisco, Juniper, Extreme and Foundry. Even equipment not purchased from NHR is eligible for NetSure coverage.[8]
  • Network Hardware offers rental and leasing options on pre-owned networking equipment
  • Companies can sell their used or surplus networking equipment to Network Hardware Resale. Network Hardware Resale offers cash or credit toward a future purchase.
  • Network Hardware Resale will assess customer’s networks and maintenance strategies in order to optimize warranty and sparing strategies and minimize maintenance costs

[edit] References

  1. ^ http://www.networkhardware.com/upload/news/TWST-NHR_Founder_Chuck%20Sheldon.pdf
  2. ^ Fast at being good : Business : Ventura County Star
  3. ^ SDA Asia Magazine
  4. ^ News and Events
  5. ^ UNEDA - United Network Equipment Dealer Association
  6. ^ Cisco aims to own used-gear market - Network World
  7. ^ News and Events
  8. ^ NHR Battles Cisco With Maintenance, Support Program - Networking - IT Channel News by CRN and VARBusiness

[edit] External links