Why Storing Computers is Bad Business
by Chris Rodinis
April 29th, 2012
blog.ewastewiz.com
www.computerworld.com
So just what is wrong with storing computers? Some IT managers think storing is a safe alternative for avoiding data breach. Other IT managers believe by storing them in a backroom at least there is no chance of polluting the environment via the local landfill. These rationalizations might make sense to some, however, statistically the risks of storage are not much different than simply trashing the equipment.
Who believes that stored computers can not be stolen? A stolen computer equals stolen data which could equal a lawsuit and hefty fines. Store too many old, used, end of life, computer systems in one place and you might get a visit from the EPA. Can you say whistleblower?
Systems in storage do not appreciate in value, in fact, the opposite is true, systems in storage depreciate in value as each day passes. Moreover, the pace of depreciation is probably accelerated everyday too. The obvious conclusion here is that eventually the opportunity to recover value through re-using, remarketing, or responsible recycling will be completely lost over time. In fact the value recovery clock begins to tick the moment the systems are decommissioned. Having an end of life technology plan in place would maximize the opportunity of asset recovery when the end comes.
Breaches are Bad for Business
Let’s start with three data breaches resulting from storing end of life computers. The year 2006: U.S. Department of Agriculture lost or lost by theft, 95 computers loaded with unencrypted data and personal information such as Social Security numbers. The year 2007: two missing computers at a Tennessee hospital resulted the loss of patient information. The year 2007: a stored computer containing a data file of confidential student information was put back to use and then inadvertently had its files shared online.
These are typical examples of data breach which are covered by HIPPA and other regulations. Violations such as these can be very costly. Fines for failures such as these can be as high as 250k and ten years prison time.
Dangers Lurk Hidden in Stored PC’s
Suppose some computers in storage get lost or stolen; what was their final resting place? A landfill? This clearly not an option and if there are any identifying markers, law enforcement could trace the computer back to its owner and bring charges against him. On top of this, because of all the toxic substances in computers, store enough computers in one room and the EPA may deem your location to be a toxic waste dump.
Storing is the classic wait and see approach which if waiting long enough means loss of material value to recover along with additional costs of transporting and proper disposal. In other words, the time of retirement is when used computers have their highest residual value. The end of life computer at one business may have a new life at another business or department as long as the IT manager acts in a timely manner. Store them too long and the opportunity of IT asset recovery is completed lost and additional expenses will be incurred.
Consider those assets collecting dust while no one uses them; lets say they are stored in a 500 square foot room. Your cost on this internal office space is $7 per square foot per month. That means your yearly cost of storage is a whopping $42,000 per year. This money could be better spent elsewhere….yes?
Accounting principles obviously verify that there is greater ROI when computers are immediately reused or recycled and not stored at end of their useful life. Whether a company waits until book value depreciation reaches zero to recycle or does it before, the “expense” is about the same. However with an IT asset management plan to reuse or recycle in place, the odds are in favor of reclaiming value from end of life computers.
Debunking the Storage Method
Why do companies still store computers when they should know better?
Storage appears easier and more certain. These companies think “who knows what will happen to it if we don’t keep an eye on it?”
Diligent analysis shows wasted space, equipment losing value over time and the risk of data breach and or environmental abuse.
The solution? Contract with a professional in asset recovery to manage the process for you. He will reuse or remarket what he can. The rest will be securely and responsibly recycled.
Sometimes companies believe they will use the old computers or the parts within again.
Just in case, what if, doomsday is coming, the sky is falling, these reasons for storage could be a recipe for disaster for data breach or theft.
The solution? An IT asset specialist may pay for this old equipment, securely destroy the data, and then remarket it. In which case the IT department stands to gain financially.
Some companies believe data destruction is easy. These companies have no plan for such an important task.
No plan according to Ben Franklin is a plan to fail. Passing the buck to the facility manager just means that eventually something will have to be done so why wait? Especially if the consequences of illegal dumping or data breach are dire.
The solution? Plan, do, check, act and continuously improve. In other word this is important enough for tasking an employee to be in charge of it. He would be responsible for the security, environmental conformance and safe destruction of confidential data.
No Plan Is a Plan to Fail
Clearly if companies do not have an end of life technology strategy, then they should create one.
Part of this process is to have an end of life budget with one person responsible.
This person would handle conforming to environmental laws and security regulations. He would know local, state and EPA regulations. He would plan according to his business’ goals and objectives.
He would chose an IT asset recovery organization that has a proven track record and meets his criteria. He will ensure that the recovery organization is large enough, competent and capable vis a vis environmental laws and secure data destruction. Here are some important things to know about any IT asset recovery operation:
What physical security measures are continually in place?
Do you inventory and serialize everything?
Do you use DoD regulations for destroying data?
Manual inspections to confirm secure and complete erasure?
Do you degauss when necessary?
Do you have ISO certifications for quality and environmental management?
Do you furnish certificates of destruction or remarketing?
Do you offer full auditing of the downstream processes?
Do you have commercial insurance to cover mishaps?
How well and what is your track record of remarketing?
For more information contact: www.EwasteWiz.com