What is IT Asset Disposition (ITAD), and How Can Your Company Benefit?
Maybe you’ve had your IT equipment for a few years and it’s getting to be time for a refresh. Or, perhaps you’ve already replaced it, and the obsolete electronics are sitting in your storage closets. Either way, it can be hard to determine what to do with outdated assets, especially if they still work. You don’t want to throw them away, and you don’t want them to keep stacking up in your closets. Not to mention, there can be several hoops to jump through if you’re going to sell your IT equipment yourself—how do you get a fair price and make sure your data remains secure?
That’s where IT Asset Disposition (ITAD) comes in.
What is ITAD?
IT Asset Disposition—sometimes referred to IT Asset Remarketing—is essentially the disposal of IT equipment. Depending on the company providing it and the assets themselves, IT Asset Disposition can encompass several services: recording/asset tracking, recycling, data destruction, and remarketing (reselling). ITAD professionals assess the value and condition of your equipment to determine the appropriate services.
How ITAD Works
When you go to an ITAD services provider, you’ll generally work with an account manager who will evaluate your assets and offer you a price for them based on the following: age and condition of the equipment, make, model, configuration, memory, and current market value. If the assets aren’t resellable, you may be offered scrap price or may need to pay to recycle them (such as in the case of broken monitors containing hazardous materials). The ITAD provider then refurbishes your assets for resale and puts them on the market.
So, What Kind of IT Assets Can You Remarket?
While the value of your equipment depends on whether there’s currently a market for it, the following assets are commonly accepted for IT Asset Remarketing:
- Networking equipment
- A/V equipment and projectors
- Docking stations
- Monitors (in working condition)
How Do You Know How Much They’re Worth?
Beyond taking into consideration the type of asset, make, model, and market value, the condition of the equipment is critical—the better the condition, the higher the value. ITAD providers need to be able to cover the cost of refurbishing and reselling the equipment, so if repairs need to be made or a piece isn’t working, you may get a lower offer or receive scrap price. For example, if you bring in a projector that needs a bulb replaced, the ITAD provider has to cover that cost, so they’ll need to factor that into the price.
That’s not to say you shouldn’t bring in the equipment—the right ITAD provider will work with you as a partner in identifying high-value items and increasing your return on investment.
Beyond disposing of equipment you no longer need, you’ll be able to get some of the money back that you originally spent on it, and usually at higher than scrap price. This process helps offset costs of replacing the equipment, and expert ITAD providers like Sadoff E-Recycling and Data Destruction can help you make predictions about what your new assets will be worth down the road. That knowledge can help you justify the purchase of the equipment you think will work best for your operations to other administrators and maximize your return on investment if you are the owner of the business or organization.
What to Look for in an IT Asset Disposition Provider
Not all companies offering IT Asset Disposition operate in the same way, so you’ll want to do your research about their practices to make sure you’ll receive a fair price and, more importantly, that your data will remain secure.
Some questions to consider when you’re looking for ITAD services:
- Will you receive payment upfront or have to wait until the unit sells? Is the payment/price guaranteed?
- How is data destroyed? Does the company assume liability for data security?
- Is the provider R2 certified?
- Does the provider offer documentation, tracking, and inventory services?
- Do you have a single point of contact at the company who deals with your assets? How easy is it to get in touch with the representative?
- How transparent is the provider about its processes? How often is it audited?
- If your assets are not resellable, does the company dispose of your equipment in an environmentally-responsible manner?
Article courtesy of Sadoff E-Recycling and Data Destruction.