The environmental impact of the IT industry is huge, and it’s only set to intensify. As businesses refresh their IT infrastructures to keep up with changing demands, one of the primary consequences of these constant upgrades is e-waste.
The scale of e-waste generation across the world is vast. The UN predicts that by 2030, the annual rate of e-waste production is on track to rise to 82 million tonnes, or 82 billion kg.
This is up 32% from 2022. The environmental and economic effects of improper e-waste disposal include:
- Overfilled landfills
- Soil and water contamination from toxic chemicals and microplastics
- Wasted resources:
- Recyclable rare earth metals remain unused, increasing extraction costs.
- Reusable components go to waste, driving up manufacturing demand.
Much of this e-waste is generated by enterprises disposing of their unwanted hardware. In doing so, they are not only contributing to an environmental crisis but also missing opportunities for extra revenue. Discover how your company can turn your retired IT hardware into economic gains.
What’s the true value behind retired IT hardware?
The myth
Businesses often consider their retired IT hardware as “junk”. This may be because the asset can no longer keep up with performance or security demands. Perhaps the device has failed permanently or is damaged beyond repair.
When this happens, many businesses replace the hardware with a new asset and see their retired device as of no further benefit to the company. However, this is far from the case.
The truth
The reality is that retired IT hardware still has a lot of value left in it, if you know where to look. Here are just a few examples:
- Functional equipment that no longer meets the performance and security needs of critical systems can be reassigned to lower-priority systems or sold to another user. This extends their useful lifecycle.
- Servers, storage devices and network equipment all contain components which can still function as spare parts in other devices.
- IT hardware often contains recyclable elements, such as glass, plastic, and metals including copper and gold. Businesses can receive compensation for retrieving and returning these materials to the circular economy.
What should I do with my retired IT hardware?
When your enterprise no longer has use for a functional IT asset, a key way of maximizing the return on your hardware investment is on the secondary market. You could sell the entire device, or components or materials.
How do secondary IT markets work?
When you buy an asset directly from an OEM, this is the primary market. On the secondary market, businesses and individuals resell and buy equipment between each other. This system offers a range of economic and environmental benefits, especially for businesses with unwanted hardware.
- Financial: While sellers recuperate some of their initial investment, buyers can access IT hardware for much lower prices than on the new market.
- Legacy equipment: Part replacements for legacy IT models may be easier to find on the secondary market, therefore giving older parts a second life.
- Environmental: Keeping equipment in the circular market minimizes the e-waste ending up in landfills and reduces demand to manufacture new devices.
However, bear in mind some important factors to minimize the risks of faulty purchases and loss:
| Factors to consider when evaluating the secondary market | Why? |
|---|---|
| Warranty | Ensure that the provider offers warranty and support options which meet your business’s needs. |
| Quality | Reliable providers restore, test and certify the quality of their equipment. If you buy directly from an individual, this may not be the case. |
| Vendor reputation | Research the provider before making purchases. This includes client reviews, which can provide insight into their reliability and customer care in case of issues. |
Case study
One illustrative case study highlights how Evernex’s Buy-Back program helped a leading financial institution profit from its unused IT hardware and streamline their data center relocation.
Our client, a prominent global bank, was upgrading and relocating its IT infrastructure. This left over 500 redundant Dell and Oracle servers. The institution required a service provider who could manage the entire asset removal process and secure the best value for their devices.
This is where Evernex Buy-Back came in. Our team was able to offer an attractive buy-back rate and handled each step of the process, covering:
- Asset pick-up
- Packaging
- Transport
- Audit
- Reporting
- Processing
Evernex allowed the institution to easily and efficiently relocate its data center, upgrade its infrastructure and maximize the ROI on its legacy servers.
Download the case study here.
How can poor disposal practices of retired IT assets put businesses at risk?
Perhaps you aren’t interested in recuperating funds from your unwanted hardware. However, your business must still dispose of its retired IT assets responsibly and in accordance with local and international regulations. Here are the biggest risks of neglecting to do so:
Environmental liability
Failing to implement proper IT Asset Disposition contributes directly to the growing e-waste crisis and the environmental pollution it causes. Of course, this has an impact on the planet at large. It also leaves your business open to the consequences of non-compliance with international and local regulations, such as the WEEE directive. This can result in fines, business disruptions and legal action.
Data security vulnerabilities
Without secure, certified data destruction processes, your company is vulnerable to data leaks. This risks:
- Cyber criminals accessing critical information and using it to attack the business or its clients.
- Non-compliance with data security regulations such as GDPR and HIPAA, leading to fines, loss of trust amongst consumers, and bans on data processing.
Reputational damage
Clients and stakeholders alike are increasingly aware of and invested in the environmental impact of brands and businesses. Negative publicity from improper disposal of electronic assets or mishandling of sensitive data can erode trust, impact customer loyalty, and deter potential partners.
How can businesses benefit from getting IT asset disposal right?
When your business no longer needs an IT asset, you have two smart and sustainable alternatives to simply discarding it:
- Secure disposal through ITAD processes
- Resale through reputable channels
Both options offer a range of benefits for your business.
| Benefits | Why? |
|---|---|
| Maximized ROI | Recuperating part of your original hardware investment lowers its total cost of ownership (TCO) and maximizes your return on investment. |
| Operational efficiency | Removing your unwanted assets from your data center or office frees up floor space and improves inventory accuracy. |
| Environmental and Sustainability Goals | Resale and recycling of components or materials participate in the circular economy. This promotes a more sustainable IT industry and helps you reach your ESG goals. |
| Improved brand reputation | Engaging in sustainable, secure IT practices will enhance your enterprise’s image among consumers and investors. This could improve financial performance as a result. |
| Regulatory compliance | Both certified ITAD processes and reselling your equipment to a reputable provider helps your business stay compliant with environmental and data security legislation. |
Whether you sell your unwanted devices through a Buy-Back program or responsibly dispose of them through ITAD, you are sure to discover hidden revenue opportunities.
What does a strategic ITAD process look like?
Correct IT Asset Disposition procedures are crucial for keeping your business legally compliant. But what do they actually entail? Here’s a handy checklist of a strategic ITAD process:
- Thorough evaluation and testing of each asset. This step assesses the equipment’s functional status and possible value.
- Secure data erasure using industry-standard methods, such as degaussing. Data destruction ensures complete removal of sensitive information to avoid risk of leaks.
- Resale of functional devices or components, generating income for businesses.
- Responsible recycling of materials from non-functional items, complying with environmental regulations.
An effective ITAD strategy also includes full certification and detailed audit trails for every asset. Such records provide transparency and support compliance. This is vital for protecting enterprises in case of an audit.
What else makes a strong ITAD strategy?:
- Traceable logistics are critical for global companies. Assets must be securely tracked across multiple locations to ensure proper handling and accountability at every step.
- End-to-end visibility in the ITAD process is essential for maintaining security, minimizing risk, and supporting sustainability goals.
How do I choose the right ITAD partner?
When entrusting your IT hardware to an ITAD provider, it is vital that you choose a trustworthy company.
Here are some of the main qualities to look for in an ITAD partner:
| What to look for | Why? |
|---|---|
| Certifications | Certifications demonstrate that the provider’s quality of work meets internationally recognized standards. |
| WEEE Directive compliance | Compliance with international, local and industry-specific standards is essential to protect your company from any legal problems. |
| Global reach | The ability to efficiently access and transport assets internationally is a huge benefit, especially for businesses with multiple data centers across the world. |
| End-to-end transparency | Visibility throughout the ITAD process not only builds trust but ensures accountability. Detailed documentation demonstrates compliance with data protection and environmental regulations. |
| Secure data destruction with certification | Maximum security and guaranteed destruction of critical data avoid risks to your business and its clients. |
For a deeper understanding of IT asset disposition, how it works and why it is so vital, download our free eBook ITAD Matters: Harnessing the Power of IT Asset Disposition.
IT Asset Disposal with Evernex
Evernex is a certified global leader in sustainable, secure IT Asset Disposition. When faced with unwanted IT hardware, here are some key reasons to consider collaborating with Evernex.
- We hold four ISO certifications, including ISO 14001 (Environmental Management Systems) and ISO 27001 (Information Security Management Systems).
- We are officially recognized for our WEEE Directive compliance.
- We refurbish 80% of the computer waste we receive.
- We have over 10 years of experience in certified IT recycling.
- We destroy your data onsite using ANSSI-recognized erasure software.
- We prioritize sustainability and promote the circular economy.
- Our Buy-Back program purchases your unwanted hardware, helping you maximize profit.
Just because your IT equipment no longer suits your needs doesn’t mean it’s without value. That retired IT hardware could be hiding untapped revenue.
Speak to an Evernex expert to request a free evaluation today to find out what your assets are really worth.
