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A Case Study in Equipment Supply Alternatives

A Fortune 500 insurance brokerage company was adding an additional SUN F6800 midrange server for their CRM project. The customer typically only bought new equipment from Sun direct or their Sun reseller. Since their IT budget had recently been reduced, the customer decided to look into the benefits of buying pre-owned or 'unused' equipment. Sun proposed the new server for a total of $585,000 list price and gave the customer a 32% discount for a net price of $397,800.

N-1 Technologies provided the customer with a refurbished alternative, which was actually a brand new server in the original Sun box, for a total cost of $258,400. The F6800 server was re-certified, eligible for manufacturer's maintenance and N-1 provided a 90 day full replacement warranty. Since the customer realized a savings of $139,400 and was significantly under budget for this project, the customer decided to add additional processors and memory to an existing F6800. The list price on the processor/ memory upgrade board was $128,000 and N-1 was able to supply the new upgrade for $37,000. Also, N-1 introduced a 3rd party maintenance provider because the customer's existing maintenance contract was terminating in the next three months. Once the idea that 3rd party maintenance was introduced, the manufacturer increased the customer's service and support discounts.

Case Studies