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A Case Study in Equipment Supply Alternatives

A fortune 1000 manufacturing company was adding two Cisco Catalyst 6509 switches to their network. The customer has normally only dealt with new technology providers and the quotes they received were from resellers and the manufacturer. The configurations for the two switches had a total Cisco List Price of $267,900. The customer was receiving an above average discount on new hardware of 41% which made the acquisition price $158,061. The original discount of 37% was increased when the idea of preowned technology was introduced.

N-1 Technologies provided the user with refurbished machines populated with a combination of new and pre-owned features at a total cost of $120,500 vs. the customer’s acquisition cost of $158,061 from Cisco. The machines were re-certified and eligible for manufacturer’s maintenance.

In addition to the $37,000 savings on price, there was a technology advantage as well. N-1 supplied model 6513 switches which have more available slots for additional capacity allowing the customer to perform upgrades in the future without having to replace the switches. The customer believed that they were going to outgrow the 6509 switches in the next 18 months but could not justify the additional $10,000 for the new 6513’s at this time.

Case Studies