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STUDY: Businesses Can Achieve 119% ROI and Reduced Network Downtime by Working with Network Hardware Resale

September 17, 2013

Independent research reveals that Network Hardware Resale delivers IT infrastructure savings, more efficient hardware deployment, and positive ROI

SANTA BARBARA, Calif., Sept. 17, 2013 /PRNewswire/ — Network Hardware Resale (NHR) today released the results of an NHR-commissioned study conducted by Forrester Consulting, The Total Economic Impact of Network Hardware Resale (August 2013).[1] The Total Economic Impact(TM), a standard methodology developed by Forrester Research Inc., captures and quantifies the voice, experience, and specific data points of six NHR customers. This study concludes that a 10,000-employee composite organization with $3B annual revenues would experience a three-year, risk-adjusted ROI of 119% over a payback period of 2.8 months by acquiring new and preowned network hardware and maintenance contracts from NHR.

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         ROI       Payback period      Total benefits (PV)        Total costs (PV)     Net present value
                                                                                             (NPV)
         ---       --------------      ------------------         ---------------       -----------------

         119%        2.8 months                   $1,672,402                ($764,844)           $907,558
         ---         ----------                   ----------                ---------            --------

    Source: The Total Economic Impact of Network Hardware Resale, a
     commissioned study conducted by Forrester Consulting on behalf
     of Network Hardware Resale, August 2013.

According to the study, “Engaging Network Hardware Resale results in material IT infrastructure savings, more efficient hardware deployment, and potential asset reclamation revenue.” Additionally, the study revealed that “NHR’s discounts to hardware and maintenance help network professionals and respective CIOs manage a shrinking IT budget.”

Areas of cost savings identified by the study include hardware costs, maintenance costs, as well as revenue from asset recovery. In addition, the study found that working with NHR results in reduced network downtime and improved network efficiency.

Specifically, the study found:

    --  Hardware and maintenance cost savings averaging as high as 65% and
        resulting in savings of $1.3M over three years[2]
    --  Network downtime avoidance, which mitigated unplanned downtime from
        three hours to 30 minutes (over 80%), amounting to $788K saved over
        three years
    --  Service efficiency, which resulted in reduction of equipment
        installation time by 75% and improved ticket resolution time by 50%, due
        to deploying preconfigured hardware and making expertise quickly
        accessible
    --  Positive ROI of 119% with a payback period of less than ninety days
    --  Asset recovery revenue resulting in an $81K revenue stream over three
        years

“Faced with ballooning maintenance costs, inflexible OEM contracts, and unnecessary infrastructure upgrades, customers are demanding more economical and effective network services and support options,” said Mike Sheldon, President and CEO of Network Hardware Resale. “We believe this study clearly demonstrates that NHR is delivering real value by providing affordable solutions that meet the network and budget requirements of any enterprise.”

The study is free and can be downloaded from the NHR website here.

NHR will be hosting a complimentary webinar featuring Principal Analyst Andre Kindness of Forrester and Forrester Consultant, Reggie Lau, which will include an overview of current trends in network infrastructure and maintenance and an analysis of the TEI results. This webinar will take place on October 17, 2013 at 10am PDT/1pm EDT and will be conducted by Mike Sheldon, CEO of Network Hardware Resale. Click to register.

About Network Hardware Resale

Network Hardware Resale is the world’s leading provider of pre-owned and new networking and datacenter solutions. Headquartered in Santa Barbara, Calif., the Company is an independent reseller of pre-owned equipment from Cisco, Juniper, HP, IBM and other manufacturers and is a Premier member of Dell’s PartnerDirect Program. Network Hardware Resale also offers NetSure(TM) Maintenance Program, a complete and customizable network maintenance solution and affordable alternative to traditional OEM maintenance. The Company offers IT asset recovery, Network Monitoring and technical support services as well as a complete line of OEM and branded optical transceivers, memory, cables and accessories. Founded in 1986, Network Hardware Resale provides global organizations quality and reliable networking and data center equipment, solutions, and services with access to personalized technical and sales support from its Santa Barbara, Dallas, New York City, Amsterdam, London, and Singapore locations. For more information, visit www.networkhardware.com.

[1]( )The Total Economic Impact of Network Hardware Resale, a commissioned study conducted by Forrester Consulting on behalf of Network Hardware Resale, August 2013

[2] Non-risk adjusted

SOURCE Network Hardware Resale


Source: PR Newswire