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Why it is a bad idea to buy open market equipment.

The open market, you may have heard of it, the market that almost seems too good to be true. Hardware sold at much lower prices often with little to no lead time.

In this case the fact that it seems too good to be true is in fact because it is too good to be true.

Even though unauthorized resellers, or brokers as they are often called, will tell you that the open market has little to no risks or downsides, the open market is the exact same as the grey market and comes with many disadvantages and risks.

With the purchase of equipment through the open market, you purchase the equipment from unauthorized resellers through an unsecured channel. Since these unauthorized resellers do not have the ability to purchase through official distributors, they often source their products through channels flooded by counterfeit or upgraded hardware. Since these channels are unsecured and equipment passes hands many times there is also a chance spyware has been installed on the equipment leaving your organization vulnerable when it comes to security.

A new trend in these unauthorized channels is the assembly of a "new" piece of equipment out of scrapped parts which is then repackaged and resealed by unauthorized parties.

Equipment purchased through the open market will be more vulnerable to run into issues which will not be supported or covered by the original equipment manufacturers (OEMs).

In the off chance that through a purchase on the open market you end up with an original piece of equipment, you will still run into issues that your organization does not want to run into.

Equipment that was purchased through the open market will not be registered in your company’s name. This means that when issues arise that are normally covered under warranty, you will be out of luck. OEMs will also not support service contracts placed on equipment that is not registered in your organization’s name.

Not only will an open market purchase strategy often leave you with equipment that is counterfeit, upgraded, malfunctioning, not covered under the OEM’s warranty nor eligible for service contracts, it will also have an increased risk that you deal with companies that do not work in the best interest for your network. These unauthorized resellers often focus on a quick sale instead of the best solution for your individual network. Since these companies are not authorized resellers, they will miss out on many of the technical training and information the OEMs provide its authorized resellers.

While the open market initially may seem like a good idea to save some money, it will often lead to long term issues for your organization and ultimately cost your more time and money and will be the source of lots of frustration.

Want to know more about the Strada Networks' official OEM partnerships? Visit our partnership page in the "Our Company" section or contact us directly!

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