Have you ever wondered what happens to the millions of dollars worth of decommissioned IT equipment each year? Given the over-engineered design of enterprise computer equipment – 25 years of functional life in most cases* – it's not surprising that a large market exists for remarketing this still very useful pre-owned computer equipment.
Birth of A Marketplace
An industry that now represents more than $338 Billion annually1, the secondary technology market began with a single person possessing a big idea. Kenneth Pontikes, an IBM sales representative, recognized that many of his customers desired a more efficient way to achieve their IT goals with less investment. So, in 1969, with a $5,000 loan from his father, Mr. Pontikes founded what would later become the $2.2 Billion company, Comdisco. Comdisco grew quickly and significantly and in 1971 became the first publically traded secondary technology equipment reseller in the world. 2
Since then, the repurposed IT hardware industry has grown tremendously as IT departments around the world have embraced the opportunity to acquire the same quality technology equipment at more affordable costs. Growing at an average rate of 5.4% annually, there are an estimated 40,000 secondary equipment traders worldwide, half of which are located in the United States.
From its mainframe roots, to the development of the S/36, and then the UNIX server lines, including HP, Sun, Digital and IBM, pre-owned computer hardware has been an integral part of corporate IT departments for the last 40 years.
15 Years Later - Along Came Cisco
Fifteen years after the start of the secondary equipment market, another big idea emerged with the founding of Cisco Systems. In 1984, husband and wife team, Leonard Bosack and Sandra Lerner, were working at Stanford University when Bosack engineered a connection between 2 local area networks that were located 500 yards apart.
After unsuccessfully pitching this new internetworking technology to numerous existing technology companies, Bosack and Lerner set out on their own and founded Cisco Systems. With minimal start-up capital, they were forced to grow the business by mortgaging their house, running-up credit card debt and deferring salaries of their initial employees.
Still short on cash, Bosack and Lerner eventually sold a controlling stake of the company to a venture capitalist organization and later divested their shares of stock for $200 Million. Since then, Cisco Systems has grown to achieve 2012 Fiscal Year Annual Sales of $46.1 Billion. 3
As with the IBM, Sun and HP hardware marketplaces, there is a large and growing pre-owned marketplace for Cisco Systems products. An industry for which KPMG estimates that last year’s sales alone equaled $7 Billion. 4
What Does This Have To Do With Zeriva – The Refurbished Cisco People?
IT Holdings, the parent company of Zeriva, was founded over 10 years ago to expand upon Kenneth Pontikes’ original vision to provide superior IT solutions at affordable costs. IT Holdings developed into a premier provider of quality, pre-owned IT solutions that included servers, storage, networking equipment and services, to thousands of customers worldwide. Our extensive customer base includes small to medium start-up organizations to Fortune 100 companies. Check out our list of customers.
In recent years, our customers have been demanding more and more networking equipment with a predominant focus on Cisco hardware. As a result, we began evolving our business to meet their needs by becoming an industry expert in refurbishing, re-purposing and reselling Cisco equipment. This consequently led to further investment in Cisco certified engineers, Cisco testing equipment, Cisco product experts and an increased inventory of Cisco equipment. Ultimately, we became a Cisco specialist.
With this new strategy, we recognized a need and opportunity to rebrand. We wanted a name to call our own, a brand that stood for something and a more modern representation of what the company had become. After numerous considerations, we kept coming back to the two things that we felt mattered most - SERVICE + VALUE. And with that…
Zeriva Was Born
Zeriva is the most customer-centric, risk-free source of pre-owned Cisco equipment on the planet. We offer the resources you need to research and select a product that meets your requirements, while providing the safest and simplest way to purchase Cisco equipment online and off.
Also, Zervia offers the most comprehensive Cisco maintenance support in the industry TRU Shield Maintenance. We provide both software and hardware support and can customize end user SLAs to meet any customer need.
Our extensive inventory of pre-owned networking equipment includes Cisco routers, Cisco switches and Cisco security products as well as Cisco phones, Cisco wireless devices and Cisco modules. Our related services include installations, asset recovery, configuration support, technical support, trade-ins and rentals.
Please take advantage of all the valuable resources we’ve provided on this site to make the best informed buying decision for your business.
*Based on the OEM Mean Time Between Failure Analysis.
**Applies to standard shipping only. Expedited shipping will incur extra fees.
1 Source: AME Research Trends In Secondary Computer Hardware 2006-2009
2 Source: This entry is part of the Encyclopedia's Dictionary of Leading Chicago Businesses (1820-2000) that was prepared by Mark R. Wilson, with additional contributions from Stephen R. Porter and Janice L. Reiff. The Electronic Encyclopedia of Chicago © 2005 Chicago Historical Society. The Encyclopedia of Chicago © 2004 The Newberry Library. All Rights Reserved. Portions are copyrighted by other institutions and individuals. Additional information on copyright and permissions.
3 Source: Used with the permission of http://thenetwork.cisco.com/.