Converge Reports Record Growth in IT Asset Disposition

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Data security, compliance pressures and the constant cycle of technology acquisition and upgrade are driving global demand for IT asset disposition, or ITAD. Companies like Converge are reporting record growth and forecasting exponential demand as enterprises form strategies to deal with phased-out computers and all manner of electronic equipment.

IT asset disposition is fast becoming a new strategic imperative

Converge announced today that its IT asset disposition (ITAD) division posted revenue growth of more than 130 percent in 2007. Even bigger increases are expected in 2008 as enterprises across the globe struggle with the security and environmental risks of replacing outdated computer equipment and other technologies critical to running their businesses.

"IT asset disposition is fast becoming a new strategic imperative," says Chris Adam, director of Converge's ITAD business. "We estimate 500 million tons of hardware will be phased out this year just in the U.S. alone, and all that material poses an environmental impact as well as vulnerability for data theft. Toss out one laptop that hasn't been thoroughly scrubbed and you can literally ruin your company, not to mention face environmental fines and compliance sanctions."

After more than 25 years as a leading independent distributor of semiconductors and electronic subsystems, Converge in 2005 launched its ITAD division, NextPhase, to address this growing challenge.

In just two years Converge has built a global services and physical infrastructure that triages millions of tons of gear -- everything from laptops to cell phones to supercomputers.

"A Fortune 1000 company without an ITAD strategy is a ticking time bomb," warns Adam. "The pace of business and the pressure to constantly innovate have created a natural but dangerous blind spot. Too few companies proactively plan for the phase-out cycle of the technology investments they are making. That's where we come in … and the earlier the better."

Adam offers the following advice for creating a successful IT asset disposition strategy:

  • Know the penalties of noncompliance. Improper data protection and environmentally unsound disposal of tech equipment could lead to significant fines, damage to a company's brand reputation, breach of secure customer and financial data, and lawsuits from shareholders or other company stakeholders.
  • Compliance is not a moment -- it is a process. Implementing new technology can take months or even years. Disposing of equipment is no less of a process and involves constant attention to quality and compliance throughout each step.
  • Liability lasts a long time. You might still be responsible for safe handling of phased-out equipment even after it leaves your company. "Transfer of liability" issues and other hidden pitfalls of asset disposition frequently surprise companies without a strategic approach to ITAD.
  • Charity might not be so charitable. Being "green" or philanthropic is not the same as being strategic about asset disposition. Donating legacy computers or divesting equipment to employees (via sale or auction) actually increases the risk of environmental and security penalties down the road.

About Converge
Converge is a global supply chain partner for technology-driven companies. The organization's three business units are dedicated to just-in-time distribution of electronic components, comprehensive asset recovery services and secure IT asset disposition. Founded in 1980, Converge is headquartered in Peabody, Mass., and has offices in Austin, Texas; Columbus, Ohio; Irvine, Calif. Singapore; and Amsterdam, Netherlands, along with support centers throughout Europe, Asia and the Americas. For more information about Converge, visit http://www.converge.com

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Mark Romanowski
Converge
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