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An on-demand business process for re-selling used IT equipment and realising its resale value early through the sale of new equipment to a second customer

IP.com Disclosure Number: IPCOM000020263D
Original Publication Date: 2003-Nov-07
Included in the Prior Art Database: 2003-Nov-07
Document File: 2 page(s) / 47K

Publishing Venue

IBM

Abstract

Many IT customers wish to replace or to migrate installed equipment to new, more powerful computers after a certain period of time. A supplier can offer to do this at the best possible price when the resale value of the installed equipment can be maximised. Unfortunately, resale value of used IT systems is often very low and it can be very difficult to find other customers who may wish to purchase the used systems at the right time. The concept of this paper is to create a 'virtual' resale of the used equipment to another Customer B at a fixed price, some period of time prior to when the original Customer A wishes to dispose of it.

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  An on-demand business process for re-selling used IT equipment and realising its resale value early through the sale of new equipment to a second customer

Disclosure:

A Business Process is disclosed for fixing and realising the resale value of used IT equipment in advance of its actual resale through its virtual presale by means of the sale of new equipment for later replacement.

    This process is ideally suited to customers who wish to buy levels of IT performance, or on-demand capability, rather than a specific version of a particular product. In the scenario envisaged a Customer 'A' has installed product of say generation (n) and has a confirmed need to upgrade to generation (n+1) after a period. The innovative idea of the 'virtual' resale consists of selling customer B generation (n+1) systems immediately, offering say half of the level of performance he is likely to require by a known future date. This equipment is replaced by that future date by the used generation (n) equipment from Customer A, using sufficient of the product to provide the full performance required by B. The generation (n+1) product replaced at customer B then becomes part of the upgraded system supplied to Customer A.

Benefits:

    Customer A effectively swaps his used equipment for new equipment at a known ratio, gaining a far better effective resale value that has actually been realised much earlier.

    Customer B grows to a significant level of performance, effectively only paying for a proportion of his ultimately installed performance capability.

    The supplier makes two sales at effective high levels of discount, and books revenue for new equipment early rather than having to sell used systems. An example

    Customer A is a large research organisation running a sizeable cluster of 'generation n' machines providing say 1000 MIPS. In nine months time A wishes to double the power of t...