We’ve all heard of the black market where illegal or stolen items are sold in secret, but have you been warned about the gray market? You could be buying defective or sub-standard used Cisco equipment and never know it.

The Gray Market

According to Cisco, the gray market is where unauthorized products are sold through unofficial distribution channels. Often the products are imported into that country for sale without Cisco’s consent or knowledge. Recently, the amount of counterfeit equipment has significantly increased.

Three or four years ago this was less of a problem, as few aftermarket Cisco dealers were selling fake gear. But when budgets are tight the gray market seems to provide an enticing alternative to buying through authorized channels. Do not be fooled, as this lower cost alternative is often wrought with counterfeit and lower quality equipment. According to the Yankee Group, the gray market accounted for 14 percent of technology sales in 2009, up from 8 percent in 2008.

The Secondary Market

The secondary market is comprised of independent resellers who deal in refurbished and used Cisco equipment, along with a wide variety of other I.T. equipment manufacturers. These companies choose to operate independently of the Cisco channel in order to broaden their product offering. Cisco "Authorized Partners" are limited to selling Cisco direct-order new and factory refurbished Cisco equipment, which often has significant lead times and limited availability. By operating independently of the Cisco Channel, secondary market resellers are able to sell network equipment from other manufacturers in addition to re-marketing surplus equipment from end-user clients.

Secondary market resellers are forward and honest about the quality and condition of their products. Pre-owned equipment undergoes a strict testing and recertification process and is sold with full replacement warranties comparable to that of new equipment. Secondary market resellers strive to separate themselves from the negative connotation of the "gray market" by operating ethically and maintaining full accountability of the products they sell. Clients can expect the highest quality pre-owned new and refurbished equipment with full hassle-free warranty programs.

Companies that buy used Cisco equipment range from small businesses operating on tight margins to Fortune 500 companies and global telcos. Some are drawn by the deep discounts and immediate delivery, while others use the secondary market to open new channels for hard-to-find parts and components. In most cases, secondary market resellers are able to provide immaculate and rigorously tested I.T. Equipment without lead-time and at a fraction of the cost.

The Authorized Channel: No "Gray" Areas

If you need to buy used Cisco equipment, but you want the promise of genuine quality, Network Systems Resale is your solution. They sell Cisco-Certified Refurbished Equipment at discounted prices on the legitimate, secondary market.

Additionally, Network System Resale’s 90-day full replacement warranty on every purchase assures customers that their e-commerce site and its pre-owned I.T. equipment are reliable and credible. They recently relaunched new website simplifies the entire purchasing process of new and used I.T. equipment

Network Systems Resale is a low cost provider of both new and refurbished IT Equipment such as Cisco routers. All of NSR’s products are application tested, and ship in "like new" condition. They provide full replacement warranties comparable to the original equipment manufacturers, including Cisco equipment. They pride themselves on product quality and place great emphasis on response time, customer service and an ability to meet rigid delivery requirements.