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But by making the right decisions in purchasing secondhand hardware, this burden could be a thing of the past.
Server and network hardware can be purchased at knock down prices and few people are aware of this gem. I recently had to expand my server infrastructure; I knew that I really needed double if not three times the cash to purchase the kit new so I had to investigate other options.
Through companies such as Recycled Networks you can acquire hardware at discounted prices. The company buys used servers from the government and resells them. It also purchases ex-demo kits which generally has only been used once before sitting idle in a warehouse.
However, there are certain issues to be considered -- anything with moving parts, for instance, is going to eventually suffer after heavy use so when purchasing equipment such as hard disks, uninterruptible power supplies (UPSs) and tape drives, buyers must be careful. If possible, try and find out the history of the equipment you are looking to purchase. Most companies that sell used equipment provide a three-month warranty so you can have the peace of mind that the equipment will be of a good condition.
Be warned that products with extended warranties (purchased by the original owner) can sometimes pose problems. For example, Compaq Carepaqs cannot be transferred to other organisations so never accept this as part of a deal unless you're sure it is transferable. The same applies for software licenses so check with the software vendor prior to purchase.
Another source of refurbished equipment is auctions. Apart from word of mouth, you can contact auctioneers directly -- one example would be the Grays Group.
I've recently visited auctions around the Sydney CBD (central business district). Companies, mainly small ISPs, which go into liquidation usually dispose their equipment as a last resort to make some needed cash.
Prior to the visit, I would obtain a list of items up for sale. It's important to know your limits before an auction to avoid over-bidding. In the past, I've seen people bid 70 percent over the recommended retail price for certain items so homework is important.
At most auctions, you will find absolute bargains but some might sells goods above market price so beware. Also, unlike Recycled Networks, most auctioneers don't provide warranties.
At the end of the day, the money is there to do be saved; it's just a case of doing your homework and making the right decisions.
Neil Lappage is an IT manager with Weight Watchers Australasia. If you would like to write for ZDNet Australia, drop the Editor a note.
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it's hard to get a bargain on grays online though..i feel there's just too many scavengers and bargain hunters.