Network equipment in the ITAD secondary market: switches, routers, and access points

When ITAD and circular economy discussions focus on devices, they almost always mean laptops, phones, and tablets. Network equipment rarely gets the same attention. But switches, routers, firewalls, and wireless access points represent a significant and growing segment of the IT secondary market. Data centre refresh cycles release large volumes of enterprise networking gear, and certain models hold their value remarkably well.

What is happening

Enterprise network equipment follows its own refresh and resale dynamics. Unlike end-user devices, which are replaced when they feel slow or look worn, network gear is replaced when it can no longer meet capacity, security, or protocol requirements. That difference shapes how it enters and moves through the secondary market.

How data centre refreshes release network equipment

Large organisations and data centre operators refresh their network infrastructure on cycles of five to seven years. These refreshes are triggered by several factors:

• Capacity requirements increasing beyond the hardware's capability
• End-of-support announcements from the manufacturer (Cisco, Juniper, HPE Aruba, or others)
• Security vulnerabilities that cannot be patched on older firmware
• Migration to newer network standards (Wi-Fi 6E/7, 400G Ethernet)
• Data centre consolidation or cloud migration

When a refresh happens, the decommissioned equipment enters the ITAD channel. A single data centre network refresh can release hundreds of switches, dozens of routers, and scores of access points simultaneously. This creates concentrated supply events similar to enterprise laptop refresh waves, but with higher per-unit values.

What makes certain models hold value

Not all network equipment depreciates at the same rate. Several factors determine which models retain value on the secondary market.

Installed base size matters. Cisco Catalyst switches, for example, have an enormous installed base globally. When one organisation decommissions them, another is looking for compatible replacements or expansions. High demand from the existing user base supports resale values.

Modular platforms hold value better. Chassis-based switches and routers that accept line cards and modules retain value because buyers can upgrade components without replacing the entire platform. A Cisco Nexus 9000 chassis, for instance, can be reconfigured with different line cards for different use cases.

Enterprise-grade reliability. Network equipment is designed for continuous operation. A five-year-old enterprise switch that has been running 24/7 in a climate-controlled data centre is often in excellent functional condition. The absence of moving parts (no fans in many smaller switches, solid-state components throughout) means less physical degradation over time.

Standardisation. Organisations running Cisco IOS or Junos environments prefer to source compatible equipment rather than mix vendors. This captive demand supports secondary market prices for established platforms.

Firmware and licensing: the resale complication

The single biggest complication in network equipment resale is software licensing. Most enterprise network gear requires active software licences for full functionality.

Cisco, the dominant vendor, has shifted increasingly to subscription-based licensing through its Smart Licensing system. When a switch or router is decommissioned, the software licence may not transfer to the new owner. This means a buyer could acquire the hardware at a discount but still need to purchase new licences from Cisco to access all features.

For some models, basic functionality works without a licence, but advanced features like security, analytics, or network automation require active subscriptions. ITAD operators must understand and disclose the licensing status of network equipment they sell, because the total cost of ownership for the buyer includes both hardware and software.

Juniper, HPE Aruba, and Fortinet have similar licensing models, though the specifics vary. This licensing complexity is one reason network equipment resale requires more specialist knowledge than laptop or phone resale.

How ITAD operators handle network gear differently

Network equipment processing differs from end-user device processing in several ways. Switches and routers store configuration data, passwords, and certificates rather than user files, so sanitisation means factory resets and configuration verification rather than drive wiping. Testing requires network lab equipment and engineering knowledge to verify port function, backplane speed, and power supply health. And grading criteria emphasise functional condition over cosmetics, because a scratch on a switch faceplate matters far less than a scratch on a laptop lid.

Why it matters

The network equipment secondary market is underserved relative to its size and value. ITAD operators who develop expertise in networking gear can access a market with higher margins, less price transparency, and less competition than the laptop or phone categories.

For buyers, the secondary market for network equipment offers significant savings. Enterprise switches and routers can sell for 40 to 70% below new prices, and the functional life remaining in quality equipment is substantial. Organisations expanding or maintaining existing network infrastructure can avoid the impact of tariff-driven price increases on new equipment by sourcing from the secondary market.

For the circular economy, network equipment reuse is high-impact. Manufacturing network hardware is resource-intensive, and extending its useful life by three to five years through resale delivers meaningful environmental benefits.

What to watch

The transition to Wi-Fi 7 and 400G Ethernet is driving enterprise network refreshes that will increase secondary market supply of current-generation equipment through 2026 and 2027.

Cisco's ongoing shift to subscription licensing is the most important trend to monitor. If licence transfer becomes easier, secondary market values rise. If Cisco further restricts licence portability, the cost advantage of used equipment narrows.

The growing importance of network security is also relevant. Organisations are retiring older firewalls and security appliances that cannot support current threat detection requirements. This creates supply of equipment that may have limited resale value as a security device but retains value for its routing or switching capabilities.

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Frequently asked questions

What types of network equipment are most commonly resold? Enterprise switches (Cisco Catalyst, Nexus), routers (Cisco ISR, Juniper MX), wireless access points (Cisco Meraki, HPE Aruba), and firewalls (Fortinet, Palo Alto) are the most traded categories. Switches represent the largest volume because every network uses them.

Does network equipment hold its value well? Enterprise network equipment from major vendors can hold value better than end-user devices, particularly modular platforms and models with large installed bases. However, value retention depends heavily on licensing status and whether the equipment supports current network standards.

What is the biggest challenge in reselling network equipment? Software licensing. Most enterprise network gear requires active licences for full functionality. When equipment changes hands, licences may not transfer, which means the buyer faces additional costs beyond the hardware purchase price.

How is data destroyed on network equipment? Network equipment stores configuration data, passwords, and certificates rather than user files. Sanitisation involves factory resetting the device and verifying that all configuration and authentication data has been erased. ITAD operators follow vendor-specific procedures for each platform.

Can refurbished network equipment be used in production environments? Yes. Enterprise network equipment is designed for continuous, 24/7 operation and is highly durable. Refurbished switches and routers from reputable ITAD operators are tested and verified before sale. Many organisations use secondary market equipment in production networks, particularly for non-critical or expansion deployments.

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