How to Save Costs Through Effective ITAD Services

It's always sad when it comes time to say goodbye to IT assets. Once tech workhorses that helped your company through countless spreadsheets, data management, and software updates, they’re now hobbled and can no longer keep pace with the speed of innovation. Yet, even at the end of their life, many IT assets still have value. With a little foresight and planning, that equipment can generate value for your company by protecting reputations, preventing data leaks, and remarketing and reselling devices.

The True Costs of Data Breaches

One of the most significant cost-saving aspects of effective ITAD services is the prevention of data breaches. According to IBM’s “Cost of a Data Breach Report 2024”:

• The global average cost of a data breach was $4.45 million in 2023, a 15% increase over the past three years. 
• Certain industries experience higher average data breach costs.
  
  • Health care – $10.93 million.
  • Financial services – $5.9 million.
  • Pharmaceutical – $4.82 million. 
• The average time to identify and contain a data breach is 277 days. Breaches involving compromised credentials take even longer, averaging 327 days.

However, the impact of data breaches isn’t just immediate financial losses. They can also inflict long-term damage to a company by eroding consumer trust and incurring legal fees and regulatory fines.

Securing Data to Save Costs

Every IT asset in your organization contains some form of sensitive data, such as customer information, financial records, intellectual property, or proprietary business strategies. When the time comes to dispose of that equipment, if it’s not thoroughly, 100% erased, that data could fall into the greedy hands of malicious actors.

An effective ITAD services strategy ensures that every device is handled with the utmost care from collection to final disposal. This means employing industry-standard data-destruction methods to ensure that no traces remain. A robust chain-of-custody tracking system documents each step of the process to ensure the security and integrity of the data destruction process.

“A company’s brand is one of its most valuable assets,” said Robert Erwin, Co-Founder & Executive Vice President of mender, a global leader in IT asset disposition (ITAD). “A single incident involving the mishandling of decommissioned IT assets can lead to a public relations nightmare. I’ve seen companies face serious backlash when old devices with intact data were found in landfills, including loss of consumer trust and even lawsuits. The best way to avoid this is by working with a certified ITAD provider that can guarantee secure data destruction and environmentally responsible disposal.”

The top three secure data-destruction methods include:

• Overwriting – a technique where new information, typically sequences of ones and zeros, is written directly on top of existing data. 
• Degaussing – using a powerful magnetic field to physically disrupt delicate components of devices like hard drives, magnetic tapes, and floppy disks. 
• Physical Destruction – methods include shredding, drilling, crushing, and melting; only pulverizing the drive into fine particles makes data recovery virtually impossible. 

Extending Budgets Through Remarketing and Resale

Effective ITAD services do more than just protect against data breaches and safeguard reputations—they can also improve your bottom line. Even when IT assets reach the end of their lifecycle, they often retain value that can be recaptured through remarketing and resale.

Refurbishment

When assets are decommissioned, rather than writing them off as a sunk cost, companies can refurbish and remarket these devices. This not only helps to defray the cost of new technology investments but also contributes to a sustainable cycle of IT asset management.

A certified ITAD provider like mender has the expertise required to restore decommissioned devices. A provider will assess each device, conduct necessary repairs, and upgrade components as needed to extend the equipment’s life and ensure that it meets the demands of secondary markets. 

Component Harvesting

Many IT assets, even when they are no longer viable for primary use, contain components—like memory modules, processors, and storage devices—that are still valuable. A certified ITAD provider can harvest these parts to ensure that no value is left behind. These components can be repurposed for other systems or sold as spare parts. This sustainable model of technology management reduces the need for new part manufacturing. 

Donation and Buyback Programs

In addition to refurbishment and component harvesting, many ITAD providers offer donation and buyback programs that allow companies to donate or sell refurbished equipment to employees, educational institutions, or nonprofit organizations. Such initiatives provide financial benefits by reducing disposal costs or potentially generating tax deductions. 

“At mender, we champion a sustainable approach to IT asset management,” said Erwin. “The resale value of IT equipment depends on its age and overall condition. So, we assess each device carefully, and if it doesn’t meet certain standards for resale, we will find the best way to get value from the item, whether that means repurposing or responsible recycling. Our goal is to maximize value while minimizing waste, ensuring that every asset is handled in the most environmentally and financially responsible way possible.”

If your organization is ready to reap the rewards of thoughtful ITAD management, please reach out to mender and discover how we can assist your business by turning IT asset disposition into sustainable success.

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