Server "second-hand" as an anti-crisis solution
In hard times, many companies are looking for ways to save money. And here an excellent option can be used equipment, including servers. After all, they are much cheaper than new ones and at the same time no less reliable. So why pay more?
And what happens in the Russian server market? To understand the trends, it is worth a little deeper into the story. In 2008, the growth of the server market in the Russian Federation, according to IDC analysts, was 18%. The demand for these products among small and medium enterprises is increasing, there is a transition from Russian equipment to products of leading foreign manufacturers.
Since 2011, there has been a clear tendency to reduce purchases of servers in Russia. In total, over the year, 162,920 servers were sold, in 2012 this figure was 159,520 units, and in 2013 –145,233 units.
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In 2014, the negative trend continued: sales fell to 143,000 servers. HP, Depo, Aquarius, Dell and IBM supplied 70% of the new equipment. However, sales of the “big three” are increasingly stagnating. Growth is demonstrated by Chinese manufacturers - Huawei, Inspur, Lenovo. The collapse of the ruble has made the servers of famous western brands much less accessible. And this trend is still preserved.
The main customers of the server are retail banks and insurance companies, telecommunications companies, retail, etc. That is, those companies where personalization of products and services provided to the end user can give an increase in customer base and a significant increase in profits.
So far, the forecast for the Russian server market is negative with a tendency to further decline. According to IDC, by the end of 2015, the IT equipment market in Russia will shed at least another 8% in ruble terms. The main reason for the fall - a sharp jump in prices. Over the past couple of years, server hardware has risen in price several times. Given the next fall of the ruble, this is not the limit, and the prices of the servers will soon creep up again.
During a crisis, companies in most cases seek to reduce capital expenditures first, so during such periods, low-cost servers are in high demand. The cost of equipment due to exchange rate increases. As a result, prices in ruble equivalent are rising, and the final consumer is no longer able to fulfill their needs. Market players and vendors have to adapt to new working conditions in Russia.
It is characteristic that 42% of servers in 2014 were supplied by Russian companies. The policy of "import substitution" will consolidate this trend in 2015-2016. The increase in the share of self-assembly systems and servers of domestic brands is typical for crisis years, when IT budgets are reduced. But this is not the only option. The alternative is to buy a server of a famous brand, but used. In many cases, this approach has many advantages.
Unfortunately, in Russia the market for used server equipment has not yet been formed, and because of its lack of system and being in the “shadow” zone of the economy, there are no statistics on it. However, interest in such products is growing rapidly, which is understandable in a crisis and budget cuts.
General estimates of this market can be given by analogy with the development and current state of the market for such equipment in the United States. There, the secondary market for used IT equipment accounts for 10–15% of the market for new equipment, which in the Russian market provides a target of 13,500–20,000 units of products. But it will be reached by about 2020, by the time of the formation of an integral “civilized” market of secondary server equipment.
The current stage of development of the Russian market corresponds to approximately 2003–2005 years in the US market, when the share of the secondary market was about 3-5% of the market for new equipment, which in relation to the Russian Federation gives an estimated market value of 4,000–7,000 units of equipment annually.
The crisis of 2008–2009 markedly stimulated the growth of the market for second-hand servers in the USA and Europe. Russia today is also in a crisis situation, when most companies do not have the opportunity to overpay for new equipment. And in this case, the purchase of used equipment can be an excellent choice to ensure the whole project or its components.
So, used servers. Does it make sense to use such equipment? How reasonable is this economy? In the USA and Europe, the supply of used servers has long been formed into a separate civilized market. Several dozens of companies have been operating in this market for more than 10 years, have an impeccable reputation and cooperate with American companies from TOP-500 of the largest companies (for example, Servermonkey.com, ITCreations.com).
According to AME Research, more than 35% of the secondary market is IT equipment of 5 years of age (the vertical axis represents the percentage of sales, the horizontal - the age of equipment).
Used servers are a rapidly growing segment of the global market. Buy them as small companies or startups with a limited budget, and well-known large companies. They are attracted by the low price, time-proven reliability and mandatory warranty. IDC estimates that in 2013 the US market for used and refurbished IT equipment exceeded $ 70 billion.
What are used servers? This equipment, which has already been operated and supplied "as is". Such servers are quite reliable: almost all defects are manifested in the first year of operation, and failures due to equipment wear are characteristic of very old systems. Diligent vendors always do full testing, often updating the BIOS and packing it, so the server will be “as good as new”. Servers clean, sometimes “customize” the configuration to the requirements of the customer. The purchase of such servers is much cheaper (sometimes the discount reaches 90% or more). This implies that a used server = a restored server.
Why buy IT equipment used? One of the reasons is a quick return on investment without compromising quality, reliability or performance. Proven, thoroughly inspected and tested equipment is a valuable asset. It costs much less than comparable new equipment, providing an acceptable level of reliability. And the delivery time is much less.
Used servers are usually 50% –80% cheaper than new ones, and only 2-3 generations behind. In general, a good gain if the technical specifications of the servers correspond to the tasks to be solved.
The difference in performance, as a rule, is not critical. Often the more important parameter is the I / O rate. When you need to add a few more servers to the rack in addition to the existing ones, it is better to stick to the same vendors, rather than installing disparate servers, getting a “zoo” with all the ensuing maintenance and management difficulties.
In any case, the most important thing is to buy equipment from a supplier you trust. This is a global practice. He must ensure that the equipment has passed pre-training and is fully operational. Also, it will not be superfluous to get a guarantee of the supplier, even if it is worth the extra money. Anyway, you will be able to save considerably compared with the purchase of new equipment.
In the current economic situation, the secondary market of server equipment is a very promising direction. By purchasing a used server, you can optimize the budget, which will be an attractive solution not only for companies and organizations of small and medium businesses, but also for larger enterprises of various industries, where previous generation servers can be used to develop and test software, to support various services (e-mail systems, working with files, printing, etc.) and for many other tasks.
Although this market in its civilized form is only being formed in Russia, there are already companies that specialize in the supply of used servers. Let us see, on the example of the Squadra Group company, what they can offer to customers.
Squadra Group sells used servers (Asus, Supermicro, HP, Dell). It differs from most companies in this market in the ability to provide a large-scale project with secondary equipment. It can supply from several units to several hundred servers of identical architecture and configuration to solve the tasks facing the client.
The company began its activities in 2014. Squadra Group is positioning the purchase of used servers as an alternative to purchasing new equipment, when, in addition to significant budget savings, it is possible to ensure efficient solution of tasks without loss of functionality, productivity and usability. She recently sold her thousandth server to a client.
What are the benefits of using used equipment to customers?
Clients of the “Skvadra Group” get a significant cost advantage in terms of server functionality / characteristics. The approximate ratio is as follows: if a new server costs from 150 thousand rubles, then the cost of the equipment comparable in performance to the used equipment is from 30 thousand rubles. As already noted, the company is ready to supply dozens and hundreds of servers of identical configuration. This allows you to fully equip a large project. Identical configuration is the main requirement of the customer, allowing to build a reliable, controlled system based on used equipment. Finally, second-hand servers from the Squadra Group are free shipping and a 12-month warranty with the possibility of its further expansion.
Squadra Group sets itself the task of becoming the market leader in secondary IT equipment, participating in its formation and development. Already, it serves clients throughout the Russian Federation and the CIS. It is planned to open representative offices in Kazakhstan and Belarus, and in the longer term - representative offices in Ukraine. The company is open to any partnership and is ready to discuss your ideas.
What would you like to know about used servers, their pros and cons? Ask questions in the comments!
Server market: ups and downs
And what happens in the Russian server market? To understand the trends, it is worth a little deeper into the story. In 2008, the growth of the server market in the Russian Federation, according to IDC analysts, was 18%. The demand for these products among small and medium enterprises is increasing, there is a transition from Russian equipment to products of leading foreign manufacturers.
Since 2011, there has been a clear tendency to reduce purchases of servers in Russia. In total, over the year, 162,920 servers were sold, in 2012 this figure was 159,520 units, and in 2013 –145,233 units.
')
In 2014, the negative trend continued: sales fell to 143,000 servers. HP, Depo, Aquarius, Dell and IBM supplied 70% of the new equipment. However, sales of the “big three” are increasingly stagnating. Growth is demonstrated by Chinese manufacturers - Huawei, Inspur, Lenovo. The collapse of the ruble has made the servers of famous western brands much less accessible. And this trend is still preserved.
The main customers of the server are retail banks and insurance companies, telecommunications companies, retail, etc. That is, those companies where personalization of products and services provided to the end user can give an increase in customer base and a significant increase in profits.
So far, the forecast for the Russian server market is negative with a tendency to further decline. According to IDC, by the end of 2015, the IT equipment market in Russia will shed at least another 8% in ruble terms. The main reason for the fall - a sharp jump in prices. Over the past couple of years, server hardware has risen in price several times. Given the next fall of the ruble, this is not the limit, and the prices of the servers will soon creep up again.
During a crisis, companies in most cases seek to reduce capital expenditures first, so during such periods, low-cost servers are in high demand. The cost of equipment due to exchange rate increases. As a result, prices in ruble equivalent are rising, and the final consumer is no longer able to fulfill their needs. Market players and vendors have to adapt to new working conditions in Russia.
It is characteristic that 42% of servers in 2014 were supplied by Russian companies. The policy of "import substitution" will consolidate this trend in 2015-2016. The increase in the share of self-assembly systems and servers of domestic brands is typical for crisis years, when IT budgets are reduced. But this is not the only option. The alternative is to buy a server of a famous brand, but used. In many cases, this approach has many advantages.
Market used servers - what is it?
Unfortunately, in Russia the market for used server equipment has not yet been formed, and because of its lack of system and being in the “shadow” zone of the economy, there are no statistics on it. However, interest in such products is growing rapidly, which is understandable in a crisis and budget cuts.
General estimates of this market can be given by analogy with the development and current state of the market for such equipment in the United States. There, the secondary market for used IT equipment accounts for 10–15% of the market for new equipment, which in the Russian market provides a target of 13,500–20,000 units of products. But it will be reached by about 2020, by the time of the formation of an integral “civilized” market of secondary server equipment.
The current stage of development of the Russian market corresponds to approximately 2003–2005 years in the US market, when the share of the secondary market was about 3-5% of the market for new equipment, which in relation to the Russian Federation gives an estimated market value of 4,000–7,000 units of equipment annually.
The crisis of 2008–2009 markedly stimulated the growth of the market for second-hand servers in the USA and Europe. Russia today is also in a crisis situation, when most companies do not have the opportunity to overpay for new equipment. And in this case, the purchase of used equipment can be an excellent choice to ensure the whole project or its components.
Used servers - what is it?
So, used servers. Does it make sense to use such equipment? How reasonable is this economy? In the USA and Europe, the supply of used servers has long been formed into a separate civilized market. Several dozens of companies have been operating in this market for more than 10 years, have an impeccable reputation and cooperate with American companies from TOP-500 of the largest companies (for example, Servermonkey.com, ITCreations.com).
According to AME Research, more than 35% of the secondary market is IT equipment of 5 years of age (the vertical axis represents the percentage of sales, the horizontal - the age of equipment).
Used servers are a rapidly growing segment of the global market. Buy them as small companies or startups with a limited budget, and well-known large companies. They are attracted by the low price, time-proven reliability and mandatory warranty. IDC estimates that in 2013 the US market for used and refurbished IT equipment exceeded $ 70 billion.
What are used servers? This equipment, which has already been operated and supplied "as is". Such servers are quite reliable: almost all defects are manifested in the first year of operation, and failures due to equipment wear are characteristic of very old systems. Diligent vendors always do full testing, often updating the BIOS and packing it, so the server will be “as good as new”. Servers clean, sometimes “customize” the configuration to the requirements of the customer. The purchase of such servers is much cheaper (sometimes the discount reaches 90% or more). This implies that a used server = a restored server.
Why buy IT equipment used? One of the reasons is a quick return on investment without compromising quality, reliability or performance. Proven, thoroughly inspected and tested equipment is a valuable asset. It costs much less than comparable new equipment, providing an acceptable level of reliability. And the delivery time is much less.
Used servers are usually 50% –80% cheaper than new ones, and only 2-3 generations behind. In general, a good gain if the technical specifications of the servers correspond to the tasks to be solved.
The difference in performance, as a rule, is not critical. Often the more important parameter is the I / O rate. When you need to add a few more servers to the rack in addition to the existing ones, it is better to stick to the same vendors, rather than installing disparate servers, getting a “zoo” with all the ensuing maintenance and management difficulties.
In any case, the most important thing is to buy equipment from a supplier you trust. This is a global practice. He must ensure that the equipment has passed pre-training and is fully operational. Also, it will not be superfluous to get a guarantee of the supplier, even if it is worth the extra money. Anyway, you will be able to save considerably compared with the purchase of new equipment.
In the current economic situation, the secondary market of server equipment is a very promising direction. By purchasing a used server, you can optimize the budget, which will be an attractive solution not only for companies and organizations of small and medium businesses, but also for larger enterprises of various industries, where previous generation servers can be used to develop and test software, to support various services (e-mail systems, working with files, printing, etc.) and for many other tasks.
Although this market in its civilized form is only being formed in Russia, there are already companies that specialize in the supply of used servers. Let us see, on the example of the Squadra Group company, what they can offer to customers.
Used servers for projects of any size
Squadra Group sells used servers (Asus, Supermicro, HP, Dell). It differs from most companies in this market in the ability to provide a large-scale project with secondary equipment. It can supply from several units to several hundred servers of identical architecture and configuration to solve the tasks facing the client.
The company began its activities in 2014. Squadra Group is positioning the purchase of used servers as an alternative to purchasing new equipment, when, in addition to significant budget savings, it is possible to ensure efficient solution of tasks without loss of functionality, productivity and usability. She recently sold her thousandth server to a client.
What are the benefits of using used equipment to customers?
- Optimize the cost of purchasing IT equipment.
- Storing data on their own servers (a matter of confidentiality) instead of using cloud services.
- The ability to offer a lower cost of their services to customers by reducing the cost of purchasing used equipment.
Clients of the “Skvadra Group” get a significant cost advantage in terms of server functionality / characteristics. The approximate ratio is as follows: if a new server costs from 150 thousand rubles, then the cost of the equipment comparable in performance to the used equipment is from 30 thousand rubles. As already noted, the company is ready to supply dozens and hundreds of servers of identical configuration. This allows you to fully equip a large project. Identical configuration is the main requirement of the customer, allowing to build a reliable, controlled system based on used equipment. Finally, second-hand servers from the Squadra Group are free shipping and a 12-month warranty with the possibility of its further expansion.
Squadra Group sets itself the task of becoming the market leader in secondary IT equipment, participating in its formation and development. Already, it serves clients throughout the Russian Federation and the CIS. It is planned to open representative offices in Kazakhstan and Belarus, and in the longer term - representative offices in Ukraine. The company is open to any partnership and is ready to discuss your ideas.
What would you like to know about used servers, their pros and cons? Ask questions in the comments!
Source: https://habr.com/ru/post/273173/
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