Saturday, May 12, 2007

This Router is Not Gray

Didja ever wonder why there wasn't a bigger demand for used computer equipment? This stuff is solid state; the internal hamster doesn't die on the wheel, it's just power flowing through silicon.

Turns out there's more than meets the eye to this issue, particularly with Cisco and their routers. In 2004, they were actively reselling used gear at a 25 to 30 percent discount as compared to new equipment. The problem is that other second-hand dealers were undercutting them, by marking it down 50 to 75 percent. So, about 2005, Cisco begins to refer to these other vendors as the gray market. Now, usually gray market means "fell off the back of the truck", not "reselling used equipment". Others might refers to that tactic as a little FUD campaign. Did I call it that? No, but others did, like this guy you has seven ways to say used router.

It is clear that Cisco certainly has problems with gear being stolen out of the supply chain, and that there are numerous Cisco fakes around. But now Cisco is going after everyone - aftermarket sellers and the ripoff artists - with equal vengeance. This is is bit blatant; clearly they are afraid of that 7 percent aftermarket share increasing. The United Network Equipment Dealer Association (UNEDA) is trying to debate with them on the issue, particularly on the issue of the moon-high fees Cisco charges to inspect and re-register used gear. Let's hope some progress is made; while that is happening, try and sell it yourself.