Data center hardware has become a commodity and a chore to deal with, especially when servers and racks become obsolete two to four years after they're purchased. Verari, a desktop and server blade and rack maker, has set up a new financial services group that will provide creative financing arrangements for data center equipment and refreshes."With the economy being the way it is, cash flow could be important to a lot of IT acquisitions," says Gerald Conboy, vice president and general manager, Verari Financial Services.
The new group will buy back a firm's old equipment from any manufacturer and resell it in other markets in the U.S., Europe and China, paying as much as $500 back for a year-old computer, a three-year-old computer might fetch $100.
The group will also provide two-year and three-year equipment leases and perform a technology refresh when a lease is up. "Wall Street companies like to have the latest technology because it makes their people more productive and it costs them less money from an energy and power standpoint to run this equipment," Conboy says.
Verari's blades and racks take less space than competitors', according to Conboy. The company can fit 96 blades in two cubic feet, where the nearest competitor can fit only 84. Blades are positioned vertically, which allows cold air from the bottom to rise easily through the rack.
The Financial Services Group will also finance IT projects in an asset lifecycle management program. "People buying this equipment also have huge IT projects and we are willing to finance the entire project," Conboy says. He notes that many IT projects don't start making money for eight or ten months. "Everybody's interested in getting a return on investment sooner, so we'll finance the project so that their costs to us will match their return on the project," he says. The overall amount owed will stay the same, but the payments will be smaller in the beginning and larger when the project becomes profitable.