Cheat sheet for cheapskates

analysis
Oct 24, 20033 mins

When bargain hunting makes sense (and when it doesn't)

Given that refurbished, discontinued, and white-box systems cost so much less than shiny new alternatives, why aren’t companies buying the cheaper hardware all the time? Stigmas and prejudices play a role, as do justifiable concerns about the lack of support and vendor service. When deciding to investigate options beyond your normal supply channels, keep these points in mind.

  • While real bargains do exist on notebook computers, I don’t recommend looking below the level of new, discontinued models that carry a full warranty. Notebooks wear faster than any other type of system and even new ones are frequent visitors to repair depots. I like the Dell and Apple programs for moving discontinued notebooks; I’m sure other vendors have them, too.
  • Basic desktop PCs are easy to find at a discount, with department stores hawking functional desktops for $300. Not one of these is suitable for business use, and I have yet to be impressed by the quality of any vendor’s consumer PC. This is a class of machine that I strongly recommend getting in white-box form. The hardware will cost less and your users won’t notice.
  • Discounted high-performance desktops and workstations are hard to come by. If you’re buying systems for performance junkies, you’ll find that what was leading edge last year is ancient now. Here again, white boxes are a great fit, but for a different reason. A high-performance desktop built by you or a local value-added reseller is exquisitely upgradable. To increase performance, you can swap out anything from the processor to the entire motherboard. That’s impossible to do with branded systems, and I believe leading-edge desktops from major brands are overpriced to begin with.
  • Entry-level servers are easy to find through all the discount channels. Rack servers in particular have short marketable life spans. All those model changes push a lot of discontinued gear onto vendors’ clearance pages and into surplus dealers’ hands. I offer two cautions. Major brands’ rack-server power supplies, especially redundant ones, are often proprietary parts. That’s also true of hot-swappable drive trays. Make sure you line up sources for these before you jump at a deal on an entry-level rack box.

    Any 32-bit x86 server with up to two processors is fair game for all discount channels, including self-built white boxes. AMD’s Opteron product line isn’t marked down anywhere yet, but it’s perfect for VARs and system builders. I’d let vendors handle Xeon systems with four or more processors, and it’ll be a while before I’d advise going after discounted or custom-built Itanium machines. At that class and above, the server needs support and skilled service.