Importance Of IT Asset Disposition
CIOReview
CIOREVIEW >> IT Service Management >>

Importance Of IT Asset Disposition

By CIOReview | Thursday, May 19, 2022

The expansion of IT asset disposition services and the evolution of the data center are interdependent, with one influencing the other.

FREMONT, CA: As the sophistication of IT technology increases, the topic of what to do with obsolete or retired computing equipment becomes more pressing. Companies must maintain data security and compliance, but they must also consider environmental and economic concerns; it is no longer sufficient to send data center hardware to the shredder or the scrap heap.

IT asset disposition, or ITAD for short, is how IT gear is disposed of. IT asset disposition strategies assist your organization's disposal needs, whether you're updating, upgrading, or otherwise disposing of computer equipment.

Investment In IT Equipment

Perhaps not unexpectedly for our data-driven age, the global production of IT gear is increasing, not decreasing. Whether they like it or not, businesses consistently allocate funds to the newest and most advanced technology.

This growth is evident in enterprise expenditures on data center and cloud infrastructure services. According to an analysis by Synergy Research Group, investment in these sectors exceeded $220 billion in 2020. Managing increasingly complex workloads across a hybridizing infrastructure is driving up costs.

Early in 2020, the interruption caused by the coronavirus pandemic resulted in a brief decline in data center expenditures, but the rate of investment swiftly rebounded. In a world dramatically altered by the pandemic, the sharp increase was driven by the skyrocketing usage of cloud-based technology.

Both cloud and on-premises expenditure on cloud and on-premises data centers continued until 2021. Data center technology is becoming an integral part of modern infrastructure, making it impossible for businesses to reduce their spending.

In other words, each data-driven organization must have a comprehensive lifecycle strategy for its hardware asset management, beginning with acquisition and ending with decommissioning.

Expansion Of Data Center ITAD Services

Amid this hardware boom, the global data center IT asset disposition services market is expanding. All firms directly handle some amount of IT hardware, and all data center equipment will eventually require repair, remarketing, or disposal in a responsible manner.

While refresh cycles appear to be lengthening, it is not surprising that the global market for data center ITAD services continues to expand in terms of spending and scope. Today's leading ITAM suppliers offer much more than just compliant disposal.

Currently, a large portion of the ITAD budget is allocated to services such as data cleansing. Organizations are eager to remove potentially private information from obsolete storage media. The repercussions for businesses that disregard this truth can be severe.

IT asset recovery, a specialty profession under IT asset disposition that focuses on maximizing value recovery from retiring or superfluous hardware, is another part of the expanding ITAD market.