[September 03, 2007]

Don't Get Faked Out

(Computer Reseller News Via Thomson Dialog NewsEdge) The counterfeiter doesn't have a whole lot of corners to cut and still have the box work ("Fakes: Can You Tell The Difference?" CRN, Aug. 20).

And if he doesn't cut corners, his box costs as much to make as Cisco's. In the picture on page 33, the fake's bulk electrolytic capacitors are much smaller. The magnetic parts are obscured behind the front panels, but I'll bet those are different, too. The fake doesn't have to pass FCC and European emissions tests.

And even without looking, I'll bet the fan in the Cisco product has ball bearings and a lot number an investigator could use to trace it back to the factory. The fake will have a sleeve-bearing fan from an anonymous manufacturer. Sleeve-bearing fans are always a red flag.

Cameron Spitzer

San Jose, Calif.

Our article on counterfeit products was also a hot topic on ChannelWeb.com. Here are just a few of our readers' comments:

'Refreshing' Point Of View

I like this article as it touches on the refurb market. Thank God for planned manufacturers' obsolescence, as not too many of my customers would entertain buying a refurbed component, either from a large online aggregator or eBay auction for use within their network environments. And this customer is doing the two- or three-year refresh on everything (even if it "still works").

Cisco makes sure that its old models are deep-sixed from support. So what rational IT manager in their right mind is going to buy an old model Cisco 1600 Access Router for $25 on eBay from an individual? You can't buy Smartnet on it. I suppose you could buy 10 of them, and that may cover replacing any DOA unit or any failed unit for some time. But what if something stops working after a software upgrade? The IT manager then has to go to management and get approval for a $3K Cisco router (that they should have purchased in the first place) and has done a major disservice to his firm, causing an outage.

This same scenario can be applied to any or all of the equipment we sell. The profit opportunity comes in where your customer tries to extend their two to three years' benefit from a server to five or six years. You might consider stocking up on parts or hope that you can buy it from a large online aggregator when the motherboard blows on an outdated Intel server. The markup is very high on the replacement part, granted, but do you buy two, just in case one is DOA? Or to have on the shelf when it blows again?

It is scary, however, that the refurbed stuff we have to buy to replace failed components on outdated hardware may be counterfeit. Which is certainly another selling point to the customer on regularly refreshing their outdated hardware.

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Can You Say 'Chisco?'

UsedCisco.com just did an entire piece on identifying "Chisco," counterfeit Cisco equipment originating in China. The article highlights the effects of state-sanctioned piracy in China on the global secondary market for used Cisco hardware. The article also includes a guide on how to identify the fake equipment when you see it.

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Secondary To None

I find it interesting how hard manufacturers are pushing against secondary market resellers, trying to lump them in with counterfeiters and the black market, when in reality, they provide a tremendous service.

First, the secondary market provides an important "green" service, keeping equipment in service and out of landfills.

Second, secondary market resellers provide a first line of defense in identifying and isolating counterfeit goods from the market.

Third, and most important, the secondary market helps original manufacturers expand their market share, selling into businesses that the OEM simply can't sell to-but once exposed to their products, will most often grow into a new equipment sales opportunity.

Counterfeit goods are a significant problem, but the secondary market is not.

http://www.crn.com

Copyright 2007 CMP Media LLC. All rights reserved.

Copyright 2007 CMP Media LLC

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