What is ITAD and Why is it a Growing Industry and Why Office Equipment Dealers Should Give it a Look

 

During the last few weeks I've been able have some awesome conversations with service providers for our industry.  I'm always on the look out for a product or a service that can help dealers expand their existing business or add growth from another service.

At Itex 2019 I was able to spend a few minutes with Ed Spriegel (President of Mid-West Copiers and Partner with ARCOA Group).  Ed was really excited about how well ARCOA is performing and stated I should chat with Brett Apold (Vice President of Sales with ARCOA) to learn more about the ITAD (Information Technology Asset Disposition) opportunities that are available to office equipment dealers.

After having an incredible 7 months of selling copiers I found the time develop some questions about ITAD.  Below is a transcript from our chats.  I also highlighted some facts that we should to pay attention to.

  1. What is ITAD and why is it a growing industry?

Information Technology Asset Disposition is the management of decommissioning retired IT assets in a manner that ensures data security and environmental compliance while maximizing residual value. Transparency Market Research states the ITAD industry will grow from $9.89B in 2015 to $18.18B in 2024. The factors contributing to that growth are cloud computing migration, big data analytics and the (IoT) Internet of Things. The increased number and complexity of legislative mandates for secure and environmentally compliant disposal of e-waste are also key contributors.



  1. If I’m in the Managed IT space why is it important for me to offer these services to my customers?
  • You will add additional revenue streams through asset buyback programs and end-of-life service offerings
  • It provides you with a differentiator in a competitive landscape
  • Allows you to provide your customers a complete lifecycle management program
  • Enhanced customer retention
  • Protect your customer’s brand with certified data security services
  • No capital investment needed to add additional revenue
  • Provide your customers environmental compliance through proper recycling methods



  1. We hear a lot about data security, especially related to data breaches. Where does ITAD come into play with helping customers protect their data?

Corporate information security is one of the leading enterprise tech concerns due to increasing reports of data breaches worldwide. Compromised enterprise information can lead to expensive recovery fees, legal repercussions and lost investor, employee and customer trust. A regularly overlooked, but imperative, aspect of data security is the destruction of residual data. Devices available for resale or recycling may still contain personally identifiable information (PII) from a previous owner. Utilizing NIST-compliant data erasure tools to ensure all PII is properly and securely wiped from a device is critical.

 

  1. What differentiates recyclers from each other? What am I looking for in a reputable recycler?

There have been many articles in the news about electronics recyclers and IT asset disposition vendors who have declared bankruptcy, been indicted or convicted for illegal export or storage of equipment, fraud and tax evasion. In order to avoid these risks, while supporting financially sound auditing practices, one needs to know what to look for. As a baseline, look for companies that are audited by an independent party on a regular schedule. Certifications such as R2 that audit processes surrounding the handling and treatment of decommissioned IT assets provide a great jump start on vendor due diligence.

You should audit your vendor. The vendor audit is all about risk management. Make certain that your questions and concerns are addressed to your satisfaction. Be leery of facilities and organizations that look too good to be true. Document any issues you find and determine whether that residual risk is acceptable to your organization. A vendor worth working with will pass your audit and minimize and/or eliminate the risks associated with decommissioning assets.

  1. At the end of the day we are all looking for ways to grow revenue…is a channel partnership with an ITAD vendor a way to do that?

 

Yes! A strong channel partner will provide you with new revenue streams that allows for your customers to spend more money with you. Residual value on decommissioned assets provides available dollars to your customers to spend with you that otherwise weren’t there.

End

For me this seems to be a win win for dealers that are looking to add additional services with zero equipment investment.  In addition when you're in some of those larger commercial RFP's it's a service like this that can differentiate your company from the pack and increase your perceived value.

If you're interested or need to know more here's Brett's contact info.

Brett Apold
Vice President of Sales
 

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