Ask any IT manager what they think about used data networking gear and chances are their eyes will light up. Six years after the Telco bust, the secondary market for IT has grown up and with it companies have grown accustomed to buying used. But with the steep discounts come added risk and buyers are becoming savvy about negotiating the vast, complex market for pre-owned equipment.

Contrary to popular thinking, availability often trumps price as the critical factor for buying used. While manufactures like Cisco and Foundry Networks commonly stick customers with two and three-week lead times, virtually any piece of equipment can be sourced from the gray market in 24 hours. Of course the discount for used, which ranges from 50-90 percent off list pricing has proved to be the real elixir; coaxing even the most conservative buyers to board the gravy train. According to industry estimates, 70 percent of companies have experience buying second-hand gear today. What is tricky about the secondary market is finding good gear and buyers have learned a lot about how to protect themselves.

Estimates of the counterfeit and stolen goods trade for data networking equipment run as high as $40 billion, a figure deserving of some scrutiny having been published by the Alliance For Gray Market and Counterfeit Abatement (AGMA) a consortium formed in September 2001 by leading IT manufacturers including Cisco and HP. Whatever the number is, it