N-1 logo

A Case Study in Increasing the Value of Idle Equipment

A Fortune 100 consumer finance company came to N-1 Technologies with a request to re-sell their SAN ESCON Switches. Initially, the customer was notified that the equipment had little to no value because the original equipment manufacturer’s (OEM) restrictive remarketing policies prohibited the sale of complete machines. N-1 however, came up with a solution that not only generated significant dollars on the re-sale of the asset, but also succeeded in getting the OEM to re-certify and transfer their software on future decommissions of their installed equipment.

N-1 advised the customer that the machines being de-installed would be worth $200,000 on the secondary market if the OEM would transfer the operating software and re-certify the equipment for maintenance. The leverage the customer had was that they were going to install $1 million of brand new equipment from the same OEM. N-1 proposed an alternate solution to the customer with refurbished competitor’s equipment, thus putting the sale of new equipment from the incumbent manufacturer in jeopardy. Once the OEM saw that they could lose a new equipment transaction, they gave a trade-in of $200,000 (the market value) and agreed that on all new equipment purchases this customer had the ability to transfer the operating software and have the machines re-certified for maintenance.

Case Studies