
According to a report issued by Gartner, Inc. in 2005, the discerning executive’s concern is moving beyond the conventional controlling of costs, and into the more progressive realm of managing data security and privacy risks.
The shift in focus is warranted. It is estimated that, through 2009, consumers and businesses will replace more than 800 million PCs worldwide, and try to dispose of an estimated 512 million (64 percent). This poses huge and costly data security and privacy risks, as well as environmental and health risks. (Gartner, Inc.; November 2005; PC Disposal Cost Update 2005: Mitigating Risks.)
The risks — and costs — associated with the casual treatment of
regulations can be tremendously damaging. Considerations:
Save money, save time, save face with TechDisposal’s knowledge and the foresight. Let us help you manage the process, contain costs, and maintain an aboveboard operation.
Evaluate your risk issues such as accounting, asset management, depreciation, regulatory requirements, storage, taxes and PC valuation. We can help with that process, as well as provide further consultation to develop a cost-effective and time-efficient plan that will honor the bottom line and the environment.
Your cost depends on your equipment and choice of disposition options. Generally, if your assets are
remarketable, this service covers its own costs and may generate a profit for you. Product with no value is scrapped in an environmentally safe manner.
Some cost considerations
Storing obsolete equipment can be expensive in more ways than one
Stockpiling technology isn’t a good idea when you add up the associated costs. For example, the average cost for a Microsoft Office license if $300. Add that with the costs of storage and property taxes, and you could be paying 300 percent more to store an asset than to dispose of it properly. (Gartner, 2005)
- Many states assess property taxes on IT assets – whether in use or not
- Costs related to software de-installation compliance
- Square footage costs
- Two-step labor costs; put equipment into storage and remove from storage
Owned assets must be properly depreciated
- Changes to deployment lifetimes will have an effect on amortization, depreciation schedules, net income and taxes
- Costly overpayment may result from failing to transfer unused software licenses and warranties