Cisco, Dell Risk Losing Sales as Recession Fuels Gray Market | Bloomberg | 5 Dec 2008

The remnants of businesses crushed by the economic slump now sit in Liquid Technology Inc.'s warehouse by the Hudson River in New York's Chelsea district.

Hundreds of servers, personal computers and routers -- some shrink-wrapped, some on pallets, some tossed in a cardboard box to be made into scrap metal -- fill the 11,000-square-foot warehouse of the company, which buys liquidated technology and sells it for pennies on the dollar. "There's a lot of bad news driving the business," said Richard Greene, Liquid Technology's vice president of operations. "It's the first wave of the tidal wave." ...

The so-called gray market -- supplied by equipment from failed businesses and shuttered offices -- could account for 14 percent of technology sales next year, up from 8 percent, said Zeus Kerravala, an analyst at the Yankee Group. The $25 billion market for servers and networking devices may be among the hardest hit, he said. ...

The fire sales have drawn customers that don't normally buy used equipment, Wild said. They're finding they can still get brand-name equipment, such as computers from Round Rock, Texas- based Dell and Hewlett-Packard Co. or networking products from Cisco, at much lower prices.

Dell spokesman Bob Kaufman declined to comment on the effect of the discounters, saying just that the company provides clients financing options, warranties, and service and support, in addition to hardware. San Jose, California-based Cisco's Kristin Carvell declined to comment, and Palo Alto, California-based Hewlett-Packard's Mike Hockey had no immediate comment.  

It's a good thing, a green thing, to recycle. Better that "Mr Market" force the computing industry to rationalize product lines and Westworld compulsive consumption than parts end up here.

Diversity is the key to economic and political evolution.

Naturally I quarrel with JB's positions but at least she's saying it in a way that's comprehensible rather than offensive. If she'd said this originally she wouldn't be enemy (enema) number one for the TG community, but we would still dispute her positions, but could probably civilly agree to disagree. Interestingly a friend of mine had an email correspondence with her v recently and she said that, without the restraint of the public sphere, JB's views are actually quite abhorrent and vindictive although, obviously, she will not reveal what she promised JB would be a private correspondence. But here she's showing a more reasonable face.

Equally I don't necessarily agree with SS' positions either, although our differences are more nuanced.

ah, they're back. CUL8R

keep to the Fen Causeway

Last night we went to Hood River to see the annual Holiday concert by The Trail Band at Hood River Middle School. It's a yearly fund-raiser (11 years now) for a local education support group. The band is one of the most eclectic collections that you are likely to find. Two ex-R&R (used to be Quarterflash - except that I can't say "used to be", because they said last night that they just made a new Quarterflash 'album'); two music geeks (PhDs, I think); a couple of bluegrass/Celtic music guys; an eccentric-genius fiddle-player; a drummer who probably plays with anybody that asks in any style that they want to play; and Linda Hornbuckle - local R&B diva. They were the tightest and most original that I've ever seen them last night. Great evening.

Tomorrow, if the sunny weather holds, I'll be starting to assemble my vertical-axis-wind machine - can't really call it a turbine. (Pictures forthcoming soon, whether it turns or falls over like one of the flying machines from the early 1900s.)

paul spencer

to put on my balcony and window sills for the traditional festival of lights...

"Ne te courbe que pour aimer..." René Char

http://www.financialsense.com/Market/daily/thursday.htm


In the long run, we're all dead. John Maynard Keynes

A sax-loving friend once said, "Everyone's got their own tone.  Like Stan Getz."

And finally, a track for those about to go somewhere.

Don't fight forces, use them R. Buckminster Fuller.