IT Asset Recovery: New Versus Used
Chris Rodinis
March 22, 2012
www.reuserecycle.com
www.computerworld.com
Recycled Computers vs. New Computers
For every computer dealer, distributor or VAR, the question on everyone’s mind is what is the current lifecycle of computers and servers in the business world? Like most business questions there are as many answers as there are IT managers. One Chicago based finance company replaces computers every 24 months. Soon they will replace 5,000 desktops and laptops whose time has expired.
An Atlanta based utility company which has 23,000 computers replaces laptops every three years and workstations every four years. A Los Angeles based media company replaces “on demand” depending on needs. Every year they set a computing benchmark and those that do not fit are recycled. Sometimes though PC’s make it to the five year mark.
The determining factors are functionality, usability and accounting considerations. And of course each decision maker has a different take on the possibilities of IT asset recovery.
A recent survey by Computerworld showed an 18 month life cycle for some and up to four years for others. Laptops move out faster because they have less stamina in the workplace. Also the latest applications need more computing power to properly run.
As applications grab more the hardware is giving more; even at less cost than before. Therefore, the temptation for used computers to be recycled is greater than ever. As we all are painfully aware, older used computers can not keep up with the resource hogging latest apps and software. In spite of this, some companies practice IT asset recovery by holding on longer to used computers due to financial constraints.
According to Intel the total cost of ownership of a 3 year lifecycle saves up $500 per year when compared with the 5 year turnover. Overall though, according to Gartner, stats show the lifecycle length trend is extending longer than it was previously.
The Hidden Benefits of Used PC’s
A CIO of a Fortune 500 utility believes that the younger workers are demanding the latest technology not as a condition of employment but as a way to push the company to a new level.
The younger workers are more forward thinking than workers in the past. The younger generation collaborates more than ever and their productivity may often be linked to the technology they use. Those intangible metrics now point to shorter lifecycle as being better for everybody.
So what drives the two-year cycle is knowing how well the computer will match the needs of the task or application. This is when projecting the future and planning requires a keen sense of future requirements.
The leasing option allows companies to stay with the latest technology because surely as leases are expiring new software is running based on the need to keep competitive. Along with that comes a balancing factor known as server virtualization where software makes the overall operation more efficient. For more information contact: www.EwasteWiz.com
Results from Using IT Recovery Strategies
Accounting factors are always the biggest driver of decision making. In spite of this an industry wide unspoken rule is a three year lifecycle. Ironically, when companies can afford a faster lifecycle they often do not act. When they do act, their concern becomes IT asset recovery.
What drives used computer replacement is finance, but what motivates it is new apps and younger employees. Even in a recession, companies are staying on their IT asset recovery plans.
With residual values at an all time on high short leases; lower costs and make for a stronger company. Going past 30 to 36 months might show diminishing returns. Workers are harder on laptops so those tend to refresh every 2 years anyway.
Get More Return on Your Used Computers
The main objective of IT asset recovery is to maximize the value of your used computers. Therefore, an IT asset recovery company can help a company accomplish its goals in the IT asset recovery arena. The mantra of e-waste is reduce, reuse, recycle. So watch out for illegal dumping in landfills and perhaps even consider donating your e-waste to the Salvation Army!
The main concern of e-cycling is fear of secure data theft. If you need a computer recycling company to handle secure data destruction, you are welcome to contact www.EwasteWiz.com