Former Cisco specialist finds Europe a ready market for used kit; gets support from vendors No longer supplying just used Cisco hardware, Curvature (formerly known as Network Hardware Resale) expects to supply used kit (the secondary market) from a wider range of vendors, and push further into storage. CEO Mike Sheldon (below) tells IT Europa that things have moved on from when he was called a grey marketeer, and that some vendors even welcome his interventions as it keeps their brand in with the client who may be looking at un-named or ODM servers to save on IT upgrades. He says he is now the major supplier of vendor-agnostic IT infrastructure and operations.
He expects to do around $300m of sales this year, and Europe has always been a clear growth market: “Perhaps because in the US, the vendors do their own maintenance, whereas Europe has got used to third-party supply and support.” And the downturn meant more business and an easier case to make. “Users still upgrade too often. Yes some core technologies move on and need a 3-5 year cycle, but the routers, IP phones etc can still do their job after ten years.”
With several years of experience of the hardware in its databases, he thinks the company can really help define better use of systems for channels and their customers, hence the move to challenge more deals and vendors. “Systems are evolving, and there is a need for a much more robust infrastructure.”
But storage traditionally has a short life-cycle? “ Yes, drives fail, but interconnects – no”. There is a lot of hardware out there and it is very expensive to maintain with the vendor. “We offer a saving not just on annual spending, but on Capex as well.” And this is a message he is taking to European channels currently, offering support whereby their customers can still deliver IT with reduced budgets. He reckons a typical OPEX budget of $100,000 can be brought down to $60,000.
Particularly the telcos and other channels, including regional integrators, find this works for them. They don't fall foul of vendor contracts and manufacturers are often happy to move out of direct maintenance after the three year deal is over, he says. It does mean they don't have to carry all the spares and inventory.
Does the secondary market still have an image problem, what with concerns over the grey market, and reports of counterfeit goods in the channel? “There are some unscrupulous people in the industry, but most others have very high standards, and sell on the quality of what they do. For example, Curvature's testing and identification systems mean it can offer a lifetime warranty on all its sales.”