The Risks of Buying Gray Market Hardware

Security Concerns

Gray market equipment won’t have up to date software or engineering change orders. It’s possible that the malware, viruses, or other security breaches are present. Why jeopardize your network’s security?

Compliance Issues

OEMs are regularly auditing contracts and invoices to find customers who are not in compliance with their software licenses and maintenance agreements. Companies have been fined for breaking these agreements and sued for lost service fees. The risk is going up.

Lack of Warranty

Gray market product isn’t covered by OEM warranty, so what happens when it fails? The reliability of your network is critical to your business. You might not know the seller, and who knows what their technical support capability is?

Hidden Costs

Unreliable gray market product can cause downtime and loss of revenue, and you’ll incur maintenance repair costs. Plus, you’re risking legal costs for disputes with OEMs and the potential of fines for operating with uncertified equipment and software.

Why buying in the gray market costs more than OEM-CPO

Penalties and Fees

With penalties and fees, buying unauthorized used hardware can be more expensive than buying new.

Engineering Change Orders

The average piece of IT hardware requires 14 Engineering Change Orders (ECOs) over the product lifetime.

Network Performance

Unauthorized hardware can under-perform, fail and introduce harmful malware into your network.

Service and Support

Unauthorized equipment is not eligible for service, support and maintenance contracts.

Penalties and Fees

With penalties and fees, buying unauthorized used hardware can be more expensive than buying new.

Engineering Change Orders

The average piece of IT hardware requires 14 Engineering Change Orders (ECOs) over the product lifetime.

Network Performance

Unauthorized hardware can under-perform, fail and introduce harmful malware into your network.

Service and Support

Unauthorized equipment is not eligible for service, support and maintenance contracts.

Don’t put your network at risk with gray market hardware.

ADDITIONAL RESOURCES

PriceWaterhouseCoopers & AGMA white paper on the growing threat from product warranty and support abuse.

KPMG report on the revenue and brand reputation risks from the gray market and product counterfeiting.

AGMA Global infographic on the complex challenges that the gray market presents.

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