Best-in-Class Networks on Real-World Budgets

Martina EmmingerAccount Executive

+31 20 44 99 221

Agenda

• NHR Overview• What We Do• Strategies to Reduce Hardware Costs• Affordable 24x7 Support• Quality Assurance• Leading Companies Buy Pre-Owned• Client Success and Satisfaction

Network Hardware Resale (NHR)• World’s most trusted source for

networking equipment & services

• 20+ years experience• Over 10,000 clients worldwide• 250+ employees• $200 million in revenue

• Offices Worldwide• Santa Barbara, CA; New York City

metro; Dallas, TX; Amsterdam; London and Singapore

• Customers include Global 2,000, SMEs and public sector

• Recent Honors• VARBusiness 500• Inc. 5000

A Global Provider• Multilingual sales and

technical support • Extensive hardware

inventory in Europe, Asia and the U.S.

• More than 30% of revenue from customers outside U.S.

• Ability to support customers globally

UK

Germany, Austria & Switzerland

SE Asia

France

Canada

Hong Kong

Benelux Region

Mid East/Africa

Scandinavia

Australia

Top 10 Markets Outside U.S. (2008)

Southeast Asia

Benelux

Canada

Hong Kong

Middle East & Africa GermanyAustria Switzerland

UK

France

ScandinaviaAustralia

One Source for Network Lifecycle Services

•Pre-owned Cisco, Juniper, Foundry

and Extreme•Force10 distributor

partner•Flexible: project-

based support or ongoing network asset management

•Leasing and rental options

Complete NetworkHardware Fulfillment

•2,500 unique Cisco SKUs in inventory

• Immediate delivery of current, previous generation and end-of-life (EOL) equipment

•Pre-configured chassis for “plug-and-play” install

EmergencyProcurements

•Network and warranty assessment

•Affordable hardware sparing, alternative to costly OEM same-day service

•Disaster recovery planning and depot services

UptimeOptimizationServices

•NetSureTM 24x7 support and NBD hardware replacement at a fraction of OEM contract fees

• Installation services

•Network design

TechnicalSupport &Services

•Sell surplus equipment to NHR for cash or trade-in value

•De-installation services

•Green IT: support reuse and reduce e-waste

AssetRecovery

Why Buy NHR Pre-owned? • Money

• Huge OEM mark-ups on new equipment• NHR prices are 50-95% below list

• Responsiveness• NHR delivers in days, OEMs often take weeks to deliver

• Postpone Expensive Upgrades• NHR supports current, previous generation and EOL equipment

• Irrelevant & Expensive New Features• Previous generation technologies often offer equal performance at

substantial savings

• It Works• Routing and switching hardware has a long lifespan• Free one-year warranty

NetSureTM Hardware Maintenance• Save more than 50%• Next-business-day advanced

hardware replacement • Technical support 24x7x365• Certified technicians with hands-

on network experience• Responsive service, rapid

resolution • Support for Cisco, Juniper,

Extreme and Foundry• Current, previous generation

and EOL support• Flexible contracts; no

re-certification fees

NHR Operational Excellence

• ISO certified processes ensure highest quality standards in supply chain and fulfillment

• Expert sales and technical staff• Cisco Sales Expert (CSE) certified

sales force • Cisco and Juniper certified technical

staff• Industry-leading equipment

testing• Spirent Test Center• Line-rate and network load testing

• Hardware failure rate less than 1%, well below OEM average

• One-year warranty free with all pre-owned equipment

NHR QMS Process

Quality System Certifications

• ISO 9001:2000 & TL 9000• Customer care, procurement,

testing and order fulfillment processes independently audited

• Highest international standard for telecom industry suppliers

• Fewer than 500 companies hold TL 9000 certification; only 2 refurbishing companies

• Continuous monitoring & improvement with QuEST Forum membership

*TL 9000 certified in two locations and one product category.ISO 9001:2000 certified in three locations. Certification No. 6T652-TL1

“Put the secondary-market gear in operation when you have a problem," says David Willis, chief of research at Gartner…"Same-day service costs about 20% more than next day, so this strategy could cut your maintenance costs...”

“In order to keep the entire edge on a five-year refresh cycle, the company might buy some used switches...”

Secondary Market In the News

“Providers of secondary network equipment answer a market need for quality products at reduced costs…network managers increasingly understand the viability of having an alternate procurement channel…The secondary equipment market is also providing a strong challenge to OEM maintenance and support in terms of quality and cost.”

Eric GoodnessResearch VP, Gartner Inc.

“Who's buying used gear? Better to ask who isn't. The customers of secondhand equipment range from small businesses operating on tight margins to Fortune 500 companies and global telcos.”

InformationWeek

Network World

SearchNetworking.com

Customer Profile• Need for rapid delivery

often drives purchase decisions

• Majority buy equipment for production use

• Global 2,000 and leading telecoms as well as small and mid-sized enterprises

• In recent survey*, 40% had revenues of $100 million to over $1 billion

*Data from 2007 survey of 400 NHR customers

Telecom

Professional Services

High Tech

Integrator

Healthcare

Education

Manufacturing

Media/Entertainment

Public Sector

Financial Services

Top 10 Customer Industries (By Revenue)

Telecom

Integrator

Media/Entertainment

Public Sector

Professional Services

High Tech

Healthcare

Education

Manufacturing

Financial Services

• NHR scored an average 4.5 (on a 1-5 scale) in customer satisfaction across seven categories:

Proven Customer Service

*Data from 2007 survey of 400 NHR customers

• Approximately 80% buy from NHR up to 10 times a year

1. Product Quality 2. Price 3. Sales Support 4. Warranty

5. TechnicalAssistance

6. Physical Condition of Product/Packaging

7. Meeting DeliveryRequirements

Real-world Network SavingsCustomer: Excel Telecommunications

• Cisco and Juniper could not deliver replacement and expansion gear on a short timetable

• Soaring cost of Cisco’s SMARTnet left certain network elements unprotected

Challenges

• Pre-owed networking equipment from NHR

• NHR NetSure maintenance

Solution

• One source for Cisco and Juniper equipment as well as maintenance

• Overnight delivery enables Excel to maintain optimal network uptime and expedite ongoing expansions

• Total hardware savings exceeds $750,000 compared to OEM list prices

• Cost of yearly maintenance reduced by 60 percent

Benefits

“There’s no reason to look elsewhere. NHR’s prices, product availability and responsive support are unbeatable.”

Jim ConnollyManager, IP Network Services

Real-world Network SavingsCustomer: Jefferson County, Wis.

• Attaining equipment replacements of previous-generation gear became increasingly difficult and expensive.

• Inadequate support, despite paying a premium for accelerated response and expedited equipment replacement.

• Rising costs of Cisco’s SMARTnet became exorbitant.

Challenges Solution

• Yearly maintenance costs are reduced from $90,000 to $19,000, enabling county to avoid personnel cuts.

• NHR meets agreed-upon parameters for expedited response and overnight equipment replacement.

• Pre-owned network equipment plus maintenance maximizes a tight budget for optimal network uptime.

Benefits

• Pre-owed networking equipment from NHR

• NHR NetSure maintenance

“…with the rising prices of Cisco’s new equipment and our tightened budget… NHR is the only way we can continue to afford Cisco and ensure maximum network uptime.”

Roland WelschIT Manager

Real-world Network SavingsCustomer: Tex-Link Communications Inc.

• Network expansion needs emerge quickly.

• Response time for securing needed gear is shorter than OEMs can serve.

• Tight budget restricts purchasing power.

Challenges Solution

• Purchasing pre-owned network gear delivers more value for the dollars spent.

• Most purchases can be delivered overnight or within 48 hours.

• One-year warranty allays any concerns regarding reliability.

Benefits

• Pre-owed networking equipment from NHR

• Rapid delivery from inventory

“Tex-Link would not be heretoday operating on such astable networking platformif it were not for NHR. They’ve become a trusted ally whose honesty, reliability and responsiveness make them stand out.”

Pete TemplinManager, Packet Networks

Network Hardware Resale+31 (0)20 449 9200www.networkhardware.com europesales@networkhardware.com