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  • 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"

  • IT Hardware Resellers

    What You Need to Know About IT Hardware ResellersThere are two types of IT hardware resellers: original equipment manufacturer (OEM) partner organizations and independent hardware resellers such as World Data Products.

    Chances are good that you have done business with both types of vendors. Here is a comparison of the two business models, and why we have leaned towards the advantages of being an independent IT hardware provider.

    OEM Partner Resellers:

    • Has a signed agreement with the manufacturer that states that they will offer the OEM’s line of products
    • May have limitations regarding other product lines or channels in which they may sell
    • Is likely authorized to sell OEM warranties and maintenance
    • Has the rights to use logos and other branding in their marketing
    • May or may not offer refurbished products
    • Probably does not buy used server or network hardware directly from end users

    OEM Partner Summary: Partner resellers are ideal for organizations that are interested in buying new equipment and typically refresh areas of their data center every three years.

    Independent IT Hardware Resellers:

    • Are independent of manufacturers and have no limitations on what they can sell
    • Offer third-party maintenance agreements to service or repair any brand of data center hardware
    • Will find the best possible new or refurbished hardware solutions for your company's requirements rather than being confined to a specific manufacturer's restrictions
    • Can stock or source legacy or "end of life" servers, networking items, and parts
    • Do not sell OEM maintenance and support but offer third party maintenance options at a fraction of the cost of OEM maintenance programs
    • Typically offer buyback programs to purchase used servers, storage, and networking gear directly from the end users
    • May offer additional data center services such as on-site or off-site data erasure or destruction, data migration, e-waste recycling, and other solutions
    • Sell server upgrades and custom configurations
    • Companies that buy and sell used equipment have short lead times. Need something fast? Our extensive inventory enables us to receive orders and sell server configurations that can ship same day.

    Independent Reseller Summary: Independent hardware resellers are a good fit for organizations that seek to fully leverage their IT budget, or are looking for single-source solution providers that provide an array of value-added services.

    There are benefits and limitations with both types of IT resellers. Many organizations rely on both depending on the application. The key lies in choosing a partner that will best meet your company's needs for the project at hand and the budget available.

    Questions? Call 888-210-7636 or contact one of our IT Hardware Specialists today for a free consultation.

     

  • Cisco Networking Third Party Maintenance Alternative

    Wishing you had a more cost-effective alternative to Cisco Smart Net maintenance? Most IT departments want a plan that includes next business day replacement, or at the very least, a spare unit on the shelf. However, many people are surprised when they learn how much of their budget goes to maintain networking equipment after purchase with a Cisco Smart Net maintenance contract. What you may not know is that third party maintenance (TPM) coverage can supplement or replace your Cisco Smart Net coverage at a fraction of the cost—and, without having to sacrifice network performance and reliability.

    Third party network maintenance offers considerable savings versus original equipment manufacturer (OEM) maintenance plans. The number one reason that a company would entertain the idea of using a third party maintenance company is because of the significant savings TPM offers over OEM plans. TPM offers all of the same features and coverage benefits as OEM maintenance, but at a significant discount. This means you get all of the performance and reliability you require at about half the cost (or less) of buying OEM coverage.

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