Green market hardware is a term that describes items that were previously owned and are now being resold. We refer to these products as the “green market” because by reselling we are extending the product lifecycle versus recycling these items, an effort that has a positive environmental impact. Sometimes you’ll hear this market referred to as the secondary market, used hardware market, or similar terms. The green market is a global, robust, and dynamic market where values fluctuate, like any other market, driven by supply and demand. The products found in this market ranges from hardware that is new in box (never deployed or opened), to deployed and then decommissioned from service, to refurbished or even remanufactured to one degree or another. There is an entire ecosystem of resellers, brokers, recycling vendors, and original equipment manufacturers who participate in this marketplace.
Rincon’s founders have over 20 years of experience and prides itself on “being green, before being green was cool.” Sustainability, articulated in our mission statement when we launched back in 2003, is at the core of what we do.
The green market is a global, robust, and dynamic market where values fluctuate, like any other market, driven by supply and demand. The products found in this market ranges from hardware that is new in box (never deployed or opened), to deployed and then decommissioned from service, to refurbished or even remanufactured to one degree or another. There is an entire ecosystem of resellers, brokers, recycling vendors, and original equipment manufacturers (“OEM”) who participate in this marketplace.
Customers buying hardware on the green market do so for a number of reasons.
- Capital expense avoidance. Simply put, items purchased on the green market are often procured at dramatic savings (up to 90% off OEM list). Because of the supply of latest generation technology available and the cost savings, many customers determine that it’s financially more viable to expand their network using green market versus new hardware.
- Shorter lead times. Green market vendors hold inventory that is ready to be shipped when buyers pull the trigger. OEMs, who look for ways to maximize their capital efficiency by deploying tactics such as “just in time manufacturing” often have lengthy lead times for new equipment.
- Maintain, spare and replace current systems. Customers utilize green market hardware to maintain existing networks when items have been discontinued by the OEM. Green market items are also often utilized as seed stock for spares inventory. And, because of the abundance of supply and low costs, many carriers and have determined that it is easier and cheaper to buy green market hardware rather than repair items.
- Achieve sustainability goals. As awareness of the environmental externalities inherent in new hardware production grows, many companies are realizing that purchasing hardware on the green market not only saves money and reduces lead time, but is also a way to achieve their sustainability goals. By extending the life cycle of hardware, companies can reduce the environmental impact of building new networks by utilizing hardware available on the green market.
Rincon is a pioneer and remains an active participant in the market, serving as the primary supply source for many resellers and brokers that provide green hardware in the global markets. Rincon further contributes by it’s leadership role in the Industry, serving on the board of UNEDA, an industry trade group that helps promote recognition of the industry and maintain standards. Rincon is unique in that 80% of our revenue is fulfilled from products that we have on hand and exclusive access to through our Investment Recovery Services with our Tier One customers and 90% of our revenue is derived from Communication Service Providers (Wireless Carriers, Cable Operators, Data Centers and Content Distribution Networks) who purchase this inventory.
To learn more about Rincon’s Sustainability Initiatives, take a look at our Sustainability Action Plan.
To learn more about how we can help your organization leverage the green market to generate capital from stale/surplus assets, stretch your budget by procuring green market hardware or collaborate with us on ways to meet your Sustainability goals, please contact us at email@example.com.