MarkITx is a transparent B2B marketplace to buy, sell & trade used IT equipment.


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Meet MarkITx, the ‘New York Stock Exchange of IT’

Used computer equipment — such as servers, switches and hard drives used by corporations and governments — is a commodity, so why not trade it like one?

That is the mantra of Frank Muscarello, 42, founder and CEO of MarkITx, an online exchange for enterprise IT hardware. MarkITx connects buyers and sellers, and inspects and refurbishes the equipment through one of its certified partners.

“We’re building a central clearing firm, right in the backyard of some of the largest clearing firms and trading firms in the world,” Mr. Muscarello said. “We like to say we’re the New York Stock Exchange of IT, where the only thing that matters in a marketplace is liquidity.”

He launched the company in April 2012 and now has $80 million in inventory on the site. After starting at incubator 1871, MarkITx moved out and recently raised $2.2 million in capital on top of the $1.1 million raised at the end of last year.

To watch the video and to see more of Lisa Leiter’s Entrepreneurs in Action series, click here.


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MarkITx Raises $2.15 Million in Second Round of Seed Funding

 

Newest Alumni of Startup Hub 1871 Opens Its Own Office and Hires as Platform Gains Market Traction

MarkITx, the premier online marketplace for buyers, sellers and wholesalers of secondary IT equipment, today announced that it has completed a $2.15 Million second round of seed funding. Every original MarkITx angel investor, including Michael Balkin, Francis Wisnewski, Jack Keenan, John Ward and other prominent Chicago business leaders, doubled down on their initial investment, bringing the company’s early financing to $3.31 million.

“This latest round of funding shows the commitment of our investors and reinforces their belief in our platform as a scalable and necessary means of disrupting the $320 billion secondary IT market,” said Frank Muscarello, serial entrepreneur and Founder/CEO of MarkITx.

One of the original members of the startup hub, 1871, MarkITx also holds the distinction of now becoming one of the original “graduates” of the co-working center for tech startups. MarkITx moved from 1871 to a temporary suite at 1 E Wacker Drive while its 2600 sq. ft. of permanent office space is being completed in the same building. The company now employs 11 people with plans to hire another 10 in a year.

“I congratulate MarkITx on its latest round of funding. 1871 is a hotbed of innovation, producing great companies around Chicago, and I look forward to continued great accomplishments,” said Chicago Mayor Rahm Emanuel.

MarkITx’s revolutionary platform brings buyers and sellers together by providing real-time values of depreciating IT equipment and access to the marketplace’s global inventory. Sellers shorten their technology refresh cycles by utilizing the platform’s value-over-time information. Buyers bid on listed products &/or indicate products they are looking to acquire which are not currently listed in the MarkITx marketplace.

From its initial beta launch in May 2012, the transparent two-sided market continues to gain traction; inventory levels now exceed $65 million with over $40M supply and $25 million in demand.

About MarkITx

MarkITx is changing the way the world trades IT. Founded in 2012, it is a transparent online marketplace for buyers, sellers and wholesalers of secondary IT equipment using real-time intelligence to determine market value based on current global supply and demand. The notion is that hardware is a commodity and therefore it should be traded like one. MarkITx is building the NYSE of IT to ultimately monitize the data and become the predictive IT marketplace.The Chicago-based company has been disrupting the $320 billion secondary IT market by keeping hardware sales safe and simple while partnering with leading OEM-certified refurbishers to provide the best value in the industry. For more information visit http://www.MarkITx.com or follow us on Twitter @MarkITx.

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Cisco v. Juniper: Who Wins the Battle of Residual Value for Your IT Dollars?

cisco-vs-juniper

Cisco v. Juniper: Who Wins the Battle of Residual Value for Your IT Dollars? 

The Motley Fool recently concluded that Cisco, despite a slump in it’s routing and switching business, is a better stock pick than Juniper. But the report didn’t address the value of each company’s individual products.

Sure, CIOs recognize Cisco as THE leading network equipment manufacturer, a stat backed up by sales figures, but is Cisco really the BEST purchase for an entity looking to maximize its return on investment? The MarkITx team sought out to answer that question, and the results shocked even us. To get to the bottom of this burning question we analyzed one year’s worth of trades on eBay for refurbished Cisco and Juniper firewalls, VPN devices, and switches that could all still be purchased new through retail.

Here’s what we uncovered:

 1. Across the board, people are paying widely different amounts for the same piece of hardware. 

Refurbished Cisco Firewalls and VPNs sold for as high as 80% of retail and as low as 10% of retail and everything in between. Some buyers are paying 5 times too much while certain sellers are listing and selling products well under 25% of fair value.

It all comes back to a lack of transparency in the marketplace for the real value of the products. Enterprises have no understanding of the future depreciation of technology, let alone the current real-time value, because they haven’t had the proper tools and knowledge at their disposal*.

There’s no method to determining the list price on eBay and the marketplace doesn’t know what’s a good buy and what’s not. It may as well be the Wild West. What’s worse, enterprise sellers who sell into the wholesale channel typically receive less than 25% of the median eBay price.

 2. Juniper switches have a slightly lower overall residual value than Cisco, but Juniper switches hold their value over time better than Cisco switches. 

Based on industry perception, you would expect switches from both OEMs to have a very sharp drop off in resale value, but we discovered resale values between 35-50% of retail for products released a year prior, regardless of manufacturer.

Interestingly, the refurbished Cisco switches started out around 50% and followed a linear depreciation dropping to 35%. The refurbished Juniper switches continued to hold their value at around 40% across the 12-month study.

These findings contradict the OEMs’ drumbeat message that their customers need the latest and greatest. In fact, the data show that buyers of used networking equipment are more interested in expanding their existing footprint than they are in frequent upgrade cycles.

*CIOs and IT decision makers can breath a sigh of relief because the days of obscure used IT pricing is over. Our transparent two-sided market allows buyers and sellers to make the most informed purchase decision possible thanks to the MarkITx proprietary algorithms across many different data sources offering predictive pricing on the value of depreciating IT.