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Latest Updates: IT Asset Disposition RSS

  • The Effects of Virtualization on Secondary Server Markets


    Tammy 10:18 am on February 10, 2010 | 0 Permalink | Reply
    Tags: IT Asset Disposition, , on-demand, , secondary server market, used hardware assets, virtualization

    As the technology industry has witnessed this year, the recession has ramped up interest in virtualization faster than anticipated. The adoption rate has blossomed beyond expectations with users continually striving for efficiency (http://www.eweek.com/c/a/Data-Storage/Big-Enterprise-IT-News-in-2009-725734/). As adoption continues, and it shows no signs of stopping, the secondary server market will soon be inundated with a large surplus, thus lowering their value.

    Companies moving towards virtualization should consider selling their servers sooner rather than later to ensure the highest return on their investment. The Reverse Logistics Association reports that companies who plan the entire lifecyle of their IT Assets in advance enjoy significantly higher returns. The current process of disposing of used hardware assets is extremely inefficient with hands touching the equipment every step of the way, creating both a security risk and increased costs. The industry is heavily burdened with brick and mortar expense that syphons value and returns pennies on the dollar to the asset owner. See the new on-demand model by ServoTerra using SaaS technology where higher returns are ensured as well as a simple, safe process of IT asset disposition.

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  • Common Weaknesses in Today’s ITAD (IT Asset Disposition) Processes


    Jeff Guthier 7:44 am on October 7, 2009 | 0 Permalink | Reply
    Tags: IT Asset Disposition, , recycling, remarketing

    Part 2 of a 3-part Series

    • ITAD Processes are Reactionary – They are not the core competency of the company, so assets come out of use and are moved to the path of least resistance; internal storage, storage off-site, storage at consignment house. Once you decommission an asset without a plan to maximize the ROI, you are already headed down a process of increased overhead and costs to your company.

     • ITAD Processes are Redundant – Consignment models are the most common ITAD service offering. The very beginning processes force redundancy for companies to log the assets they are sending to a consignment house, where the first step is to inventory the assets and report back any discrepancies. Then both companies maintain an on-going inventory of those assets to their final disposition.

    • ITAD Processes are non-Transparent – The true overhead costs of consignment programs is not known to the owner of the asset. Final ROI of the ITAD program becomes blurred in the cost to inventory, tear down, recycle and maintain proper documentation. The recovery value of recycling or remarketing is often settled via a back end revenue share after the cost of doing business. The financials are easily and quickly distorted leaving the asset owner knowing they could be doing better, but not sure how. The Broker will provide the asset owner with a seemingly easy way to dispose of assets by offering pennies on the dollar for a pallet or truckload of assets. The asset owner doesn’t know the true value of their assets, but the Broker knows exactly which “golden nuggets” on that pallet or truck are going to yield high ROI.

    • ITAD Processes are Fragmented – A complete ITAD program may require the consolidation of several downstream partners. The consignment house uses a local recycler which uses a national refiner. Each time the asset changes hands it enters into a different tracking and reporting process that somehow must be maintained in the original asset owner’s back office systems. The internal IT and document control to manage this is another cost of the program.

    Stay tuned for Part 3 of the series, Recommended Best Practices for ITAD

    Visit http://www.servoterra.com to see how they’ve addressed these common weaknesses with a new SaaS solution.

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