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Gartner

  • Avoid the "Biggest Rip-Off in Networking" with help from World Data Products

    As IT expenditures continue to grow, swelling up to 6% of revenue for many corporate clients, technology decision makers are looking for options to maximize their budgets. For 30 years, many of these buyers have looked to World Data Products, Inc. for help through multiple budget friendly options such as: refurbished IT hardware, asset disposition services, and third party maintenance solutions.

    The latest trend in IT cost reduction for the savvy IT decision maker is the procurement of networking optics, from sources other than the manufacturers and their channel partners. As described by Gartner, a leading IT consulting firm, in a report titled “How to Avoid the Biggest Rip-Off in Networking” (August 2017)

    "Networking transceivers make up 10%-15% of enterprises’ networking capital spending, and most suppliers excessively overcharge."

    Imagine the last time you bought a new television from your local big-box electronics store. You had done your due-diligence in advance and were confident you were getting a great deal. But at checkout, you realized that you had a cart full of HDMI cables priced at $60-$80 each. Some buyers will continue the purchase out of convenience or feeling of obligation, but others look elsewhere to buy those cables for a price that they are worth, $10-$15 at most. This high profit add-on technique is not limited to this example – it happens every day in the corporate world, to IT buyers at small businesses and large enterprises. The OEMs simply overcharge for a product that has a very low cost to manufacture.

    Nearly all of the large network hardware OEMs outsource the manufacturing of optical transceivers (GBICs, SFPs, etc.) to others and merely rebrand them, before they add a mark-up of several hundred percent. By bypassing the OEM and partnering with manufacturers like these, WDPI is able to provide the same quality product at a fraction of the price.

    In its report, Gartner mentions World Data Products as a supplier for both OEM branded and third party optics. World Data Products can save customers up to 80%-90% vs. the OEM list price. WDPI’s optics are fully tested in a proof-of-concept lab, 100% compatible, and include an advance replacement lifetime warranty.

    According to the report, “We've observed that network OEMs and their channels use aggressive sales tactics to scare enterprises away from third-party optics, claiming it is ‘illegal’ to use them, or that it will ‘void the warranty.’ This is simply not true.” So whether you are an average Joe or Jane buying a new television, or an IT Director for a large corporate enterprise, remember that in addition to a responsibility to your bottom line, you have options. Look to World Data Products for help.

    See our Optics Contact Page, "Getting the best deal on Networking Optics"

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