The data is in, and IT-industry practitioners have made it clear that concern over data security is the number one reason to implement an IT asset disposition strategy. This trend isn’t surprising considering the ongoing media reports about data breaches and retired assets found to contain sensitive data. Companies are becoming more aware of penalties arising from improper disposal of IT assets. There is a heightened awareness among IT managers and stakeholders of the need to include IT asset disposition (ITAD) as a strategic business solution, with the number of companies budgeting for ITAD up 38% over 2012 data. Despite the increased focus on data security, there appears to be some uncertainty (among the companies surveyed) surrounding the actual data security methods, with a misunderstanding of the most effective methods of ensuring data destruction.
Environmental issues continue to rank highly among IT asset disposition concerns. Although the adoption of industry-recognized compliance standards is the most important factor in selecting a 3rd-party provider, just which standards are the most important is not entirely clear. As might be anticipated, companies with more than 50,000 employees show significantly higher adoption rates across nearly all compliance standards surveyed than do smaller companies. In comparing the e-Stewards standard with the R2 standard, most (59%) of the companies surveyed said the standards are equally important and an astonishing 88% felt they should be combined.
In addition to data security and environmental standards, concerns over the financial and legal risks associated with the proper disposition of electronic assets are strong motivators for companies employing an ITAD strategy. Shifts in technology trends such as Bring Your Own Device (BYOD), a great emphasis on the cloud, and ongoing concerns regarding the implications of these various trends on data security continue to compel companies to expand their IT asset disposition program and data security policies.
Corporate social responsibility and sustainability have gained widespread momentum; however, there is strong evidence that many end users still don’t handle electronics properly – from either an environmental or a data security perspective.
As the business environment continues to evolve with the adoption of so many new devices, it is clear that companies are paying more attention to the need for an IT asset disposition strategy. A well-planned ITAD strategy is necessary to mitigate risks and protect the organization and brand.
Professional IT Asset Disposition and Strategy
1. Does your company have a formal, end-of-life IT asset disposition strategy for technology equipment?
2. How important are the following factors in motivating the creation of your current end-of-life IT asset disposition strategy?
- Compared to 2012,* data security, “Green” business practices, and mitigation of legal and financial risks remain the most important factors. Other important factors include philanthropy programs and redeploying assets to reduce costs.
Percentage of companies considering each factor to be “Important” (either “Very Important” or “Extremely Important”)
3. How do you currently handle your end-of-life IT assets? 
4. Are you currently using a 3rd-party service provider to manage your end-of-life IT assets?
- In 2014, nearly 2 out of 3 companies surveyed chose to have a 3rd-party service provider manage their end-of-life assets.
Best Practices for Selecting ITAD Providers
5. How important are the following factors in selecting a 3rd-party service provider to handle your IT asset disposition?
Percentage of companies considering each factor to be “Important” (either “Very Important” or “Extremely Important”).
6. Which industry certifications play a role in the selection of an IT asset disposition provider?
7. Which environmental standard is the most important to your company?
-
95% of companies feel that R2 and/or e-Stewards are the most important environmental standards related to ITAD.
8. When it comes to environmental stewardship standards, how important is it to you that R2 and e-Stewards be combined into one standard?
- Nearly 9 out of 10 companies feel that R2 and e-Stewards should be combined into a single standard.
Data Security and Compliance
9. Does your company have a data security policy that applies to the end-of-life processing of assets?
- Most companies are concerned with data security. Companies with a formal ITAD strategy and companies who use a 3rd-party service provider are more likely to have a data security policy.
10. What steps does your company take to alleviate concerns regarding data security?
- Multiple tactics are used to alleviate data security concerns. In fact, nearly two thirds of the companies use 3 of the 5 tactics listed below. However, there appears to be some uncertainty and misunderstanding surrounding which methods are truly effective, with a majority of companies selecting “Delete the file directory on the hard drive” in addition to other tactics. A deeper analysis of the results shows that about 4 out of 100 companies selected “Delete the file directory on the hard drive” as the only tactic they use.
11. Does your company have a Bring-Your-Own-Device (BYOD) policy that allows employees to use personal devices for work purposes?
12. What percentage of employees are provided with a company-owned computer, tablet or smartphone?
13. Does your company have a policy and process to ensure that company data on BYOD devices is secure during active use?
- Compared with 2012,* companies have significantly increased their efforts to ensure that company data on BYOD devices is secure.
14. Does your company have a policy and process to ensure that company data on BYOD devices is eradicated once the employee’s device is no longer active on the company network?
15. On a scale from 1 to 5, where 5 equals extremely aware and 1 equals not at all aware, how aware are you of the negative potential impact of each of the following issues related to improper IT asset disposal on your business?
- Awareness of penalties due to improper disposal and awareness of the total cost of ownership among companies surveyed is high and increasing.
Corporate Social Responsibility and Sustainability
16. Does your company have a formal corporate social responsibility or sustainability program in place?
- Larger companies are more likely than smaller companies to have a program in place. Slightly less than one third of the smaller companies surveyed plan to have a program in place by the end of 2015.
17. Do you report the progress of your corporate social responsibility or sustainability program?
18. Do you include the impact of your IT asset disposition program in your environmental reporting?
Budgeting and Measurement
19. Does your company budget for the IT asset disposition process?
- Companies are becoming more aware of the need for ITAD and are budgeting for it.
20. How often is each of the following company-owned assets replaced with new equipment?
21. What impact is the cloud having on your IT asset purchases?
- Compared to 2012,* the cloud is having significantly more impact on a company’s IT asset purchases.
Methodology
Data for the 2014 ITAD Trends report was obtained by Blumberg Advisory Group, an independent research and consulting firm specializing in strategic IT issues for mid-size to large enterprises. Findings were derived from questionnaires completed by 235 respondents. Interpretation of this data has been provided by IT asset disposition experts at Arrow Electronics and by Blumberg Advisory Group.
*Data for the 2012 ITAD Trends report was obtained by Osterman Research from a survey of 100 companies utilizing a similar methodology as described above.
Are You Five Years Out?
Most people live in the present. The world of now. But a handful of us work in a unique world that doesn’t quite exist yet—the world of Five Years Out.
Five Years Out is the tangible future. And the people who live and work there know that new technologies, new materials, new ideas and new electronics will make life not only different, but better. Not just cheaper, but smarter. Not just easier, but more inspired.
Five Years Out is an exciting place to be. So exciting that, once you’ve been there, it’s hard to get excited about the present. Because we know what’s coming is going to be so much better.
Five Years Out is a community of builders, designers, engineers and imaginers who navigate the path between possibility and practicality. Creating the future of everything from cars to coffeemakers.
Are you one of them? Then you’re probably working with us.
About Arrow Value Recovery
Arrow’s Value Recovery group provides specialized IT asset disposition (ITAD) and reverse supply chain solutions that protect clients’ brands, reduce their risks, and enable technology users to uncover opportunities for greater efficiencies and value capture at the end of the IT product lifecycle.
Innovating in ITAD services for more than 15 years, Arrow’s Value Recovery business is among the leaders in the Gartner Magic Quadrant for IT Asset Disposition, Worldwide.
