Industry Terms and Definitions

The following definitions are a guideline to simplify, clarify and provide semantic consistency used throughout the secondary market for technology products and services. These definitions are intended for use by anyone engaged in the marketing of technology products and services including, but not limited to, buying, selling, leasing, maintaining, financing and manufacturing such products and services.

ASCDI Industry Terms and Definitions

 

As Is

Equipment that is bought or sold in its current condition without seller’s warranty. “As Is” refers to the condition of the Equipment; Equipment must always conform to its description in the sales agreement.  The buyer must rely upon its own inspection to determine the condition of the Equipment with no reliance upon seller’s representation whatsoever. Buyer acquires As Is Equipment at its own risk.

 

As Shipped by Manufacturer
The specific configuration of a particular system as originally sold by the Manufacturer, including the Manufacturer’s Ship Group.

 

Authorized Reseller/Business Partner

An independent company within the Manufacturer’s distribution channel, authorized to sell Equipment with warranty and services.  Authorized Resellers can often license Manufacturer software products.  Authorized Resellers may often be identified by displaying the Manufacturer's logo on their stationary and business cards.

 

Broker

An individual or company that facilitates a transaction between a buyer and seller without necessarily taking title to Equipment.  Some brokers may buy Equipment for resale only after they have a committed buyer. Other Brokers may collect a fee for introducing a seller to a buyer.

 

Dealer/Stocking Reseller

An individual or company that buys Equipment takes title to it and resells it from inventory.

 

Dealer/Broker Warranty

The warranty on Equipment that is provided by the seller which may include repair, replacement or refund of the purchase price.

 

Equipment

Physical machines, peripherals, features, or any combination thereof.  The model and serial numbers, if applicable, as well as the description of the Equipment, are designated by the Manufacturer.

 

Factory Refurbished/Manufacturer Refurbished
Equipment that has been returned to the Manufacturer’s factory or certified location to be rebuilt and may include: new or repainted covers, repaired or replaced parts, repaired or upgraded subassemblies, upgrades, chips and features. Factory Refurbished may or may not come with Manufacturer’s Warranty, maintenance certification or software licenses.

 

Grey Market Equipment

Equipment sold by an Authorized Reseller in violation of its agreement with the Manufacturer of the Equipment.

 

Guaranteed eligible for manufacturer’s maintenance

A seller’s guaranty that Equipment will be accepted by the Manufacturer for its standard maintenance contract

 

Manufacturer

The company that initially places Equipment into the market and identifies it by model number, unique serial number, logo and description.  (i.e., HP, IBM, Sun Microsystems, Cisco, STK, Avaya, EMC, etc.)

 

Manufacturer’s New

Equipment sold new by the Manufacturer or its authorized distribution channel.  Depending upon the Manufacturer, Equipment may come with Operating System software, Manufacturer’s Warranty and Ship Group. Manufacturer’s New Equipment may or may not contain 100% new parts.

 

Manufacturer’s Warranty

The warranty on Equipment acquired directly from a Manufacturer or its Authorized Reseller/Business Partner.

 

New-Unused

Equipment sold by independent resellers that has never been put into service.   This Equipment may not possess the full entitlement or backing (warranty, eligibility for service, licensing, etc.) of Manufacturer’s New Equipment.

 

OEM - Original Equipment Manufacturer

The term OEM has different meanings depending on context. It and can be used as a noun, adjective, verb or adverb. It can mean Original Equipment Manufacturer, the company that manufactured the equipment; it can mean Other Equipment Manufacturer or a company that assembles products but does not manufacture it. And, in mainframe jargon it can mean any manufacturer other than IBM that manufactures IBM compatible equipment. Because of the different and sometimes contradictory potential definitions and usages of the term OEM we believe that OEM is too ambiguous a term to be used in contracts and strongly suggest it not be used. To refer to the company that manufactured Equipment simply refer to the Manufacturer. 

 

Operating System (OS)

Software that controls the execution of all programs and manages computer resources such as memory, peripherals and storage.  Examples of Operating Systems include Linux (Red Hat), UNIX (Solaris, AIX, and HPUX), VM, VMS, Cisco IOS and Windows.

 

 

PCM (Plug Compatible Manufacturer)

Producer or supplier of Equipment which is functionally equivalent to another Manufacturer’s standards.

 

Refurbished

Equipment that is tested, cleaned and if necessary repaired, painted and possibly upgraded or some combination of these services. Due to the many potentially different levels of refurbishment the scope of refurbishment must be accurately described in any discussion or contract.

 

Right To Use License (RTU)

A nonexclusive license to use a Manufacturer’s or developer's software.  Key terms of the RTU will be whether it is transferable or nontransferable, as well as its geographic limitations.  If applicable, the fee for the RTU could be included in the price of the Equipment, a fixed one-time charge, or a recurring periodic charge.

 

Ship Group

Cables, manuals, tools, terminators, connectors, brackets, panels, logics (schematics and diagrams), consoles, etc. (as applicable) that accompany Equipment when originally shipped by the Manufacturer.

 

Used

Equipment that has been previously placed in service and sold by an independent reseller, Manufacturer or end user.  Used Equipment is not Grey Market Equipment.