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Thread: Purchasing off-lease equipment?
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10-23-2009, 11:02 AM #1Disabled
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Purchasing off-lease equipment?
Hi Everyone
I've been searching Google for a few days in hopes of finding companies that take off lease server equipment (sometimes almost brand new) and auctioning it off to people.
I've been buying alot of equipment through resellers of these places but I would like to cut out the middle man expense and bid for myself.
For example. This week I purchased ten Dell PowerEdge R200's with X3220 Xeon CPU's in them. These are fairly new. I don't want to buy first generation single-core xeon servers.
Look forward to finding out who is supplying these people.
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10-26-2009, 01:11 AM #2Web Hosting Guru
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People that offer managed servers might be a good place to start.
When we retire a server, we just give it away to anyone that we know that wants it.
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10-28-2009, 11:24 AM #3Junior Guru Wannabe
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We just retired 20 1U servers, mostly p4 and dual xeons. Drop me a note for a spec list. Toronto area.
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11-15-2009, 05:10 PM #4Junior Guru Wannabe
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fyi chris your mailbox is full..
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11-15-2009, 06:45 PM #5Web Hosting Master
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If you find out tell me, as I am interested too.
It just seems too expensive to pay $800-1000 for a single quad xeon brand new.
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11-15-2009, 07:08 PM #6Master of the Truth
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Yellow Fiber Networks
http://www.yellowfiber.net : Managed Solutions - Colocation - Network Services IPv4/IPv6
Ashburn/Denver/NYC/Dallas/Chicago Markets Served zak@yellowfiber.net
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11-15-2009, 07:23 PM #7Web Hosting Master
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When you have to compete with $90/mo quadcores from competitors, and you don't have access to leasing brand new machines for a number of reasons (startup business, or no personal credit, or no credit if the company has any foreign ownership - my case, bank manager doesn't like your face, "the crisis", etc etc etc), buying upfront is the only option. And when you have slim profit margins or low investment capital, having upfront money is hard.
If you can buy an used, let's say, X3220 for $200 (completely arbitrary processor and value), instead of buying a new X3400 for $800, even if it breaks, you have to spend only another $200 to replace it, _if_ it breaks (and except for harddrives, server-grade equipment usually has a higher MTBF). The brand new X3400 is 4x more expensive.
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11-15-2009, 07:27 PM #8Master of the Truth
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So do what they do and build desktops and put them in cheap cases which fail and break often.
If you can't competing with the bottom dwelling companies that are much bigger you should find another niche market, or find a different product.
Establish a relationship with dell and use DFS which is a division of the bankrupted CIT.. but they still do financing and leases, just be prepared to buy ~40-60 machines at a time to get agressive pricing.
In short if you want to compete you need to buy in bulk. The companies selling machines for 90/month have way bigger revenues and probably spend 50-80k+/month on new equipment.
Just take a look at say liquidweb. All they use are desktop mid towers and mostly desktop quads.
And don't get me started on competing with 90/month machines where my niche market is seeing equivilent machines with 100Mbps for 250-350/month. Its all about adaptation and what you do from that point on.Yellow Fiber Networks
http://www.yellowfiber.net : Managed Solutions - Colocation - Network Services IPv4/IPv6
Ashburn/Denver/NYC/Dallas/Chicago Markets Served zak@yellowfiber.net
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11-15-2009, 08:32 PM #9Web Hosting Master
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Travis Stoliker
Liquid Web - Dedicated Hosting with Heroic Support
StormOnDemand - Flexible Cloud Hosting Infrastructure
1-800-580-4985 | Twitter: @liquidweb | @StormOnDemand
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11-15-2009, 08:59 PM #10Master of the Truth
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Alright i'm sorry but the general view of your videos all over the place are all racks full of mid towers. You were just an example of a cheaper setup for that particular setup. Only reason you were brought to mind is due to the video on DCK about your new datacenter.Yellow Fiber Networks
http://www.yellowfiber.net : Managed Solutions - Colocation - Network Services IPv4/IPv6
Ashburn/Denver/NYC/Dallas/Chicago Markets Served zak@yellowfiber.net
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11-15-2009, 10:33 PM #11Web Hosting Master
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Just last week I've heard about dual dual Xeon Dells with 2x250GB and 8GB RAM for $400 - off lease - in Atlanta.
Don't know if they are 1U or 2U, but they are servers (not desktops).
We didn't purchase them, so I don't have a personal experience with the seller/servers.Professional Streaming services - http://www.tulix.com - info at tulix.com
Double optimized - AS36820) network, best for live streaming/VoIP/gaming
The best quality network - AS7219
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11-16-2009, 09:52 AM #12Junior Guru
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Dual Dual Xeons really aren't that telling. I mean, it could be the Netburst ones or the early dual socket FB-DIMM ones. The point is that those early Xeons suck a lot of power and the power supplies are usually only 70% efficient(80plus came after). So they suck roughly 3A each and the power cost to keep them hosted are going to be many times the acquisition cost of the servers themselves.
The best used Xeons to get are L5410s on 5100 chipset. Unfortunately, they are still only 1.5 years old, and no one wants to get rid of them yet for a cheap price. The rest of the used market just can't compete with the Dell R210 with L3426 when power costs are considered.
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