The ITAD Market (IT Asset Disposition) is growing fast due to the awareness about the proper disposal of e-waste, and cloud computing has contributed to its exponential growth during recent years. This business of disposing of obsolete or end-of-life IT equipment in an ecologically responsible manner.
The ITAD Market is estimated to reach a whopping US$18.8 billion industry on a global scale.
To a major part, this may be attributed directly to the growth of cloud computing technology and the adoption of the same by many of the businesses, large and small, irrespective of their type of business.
The ITAD Market Dynamics
The principal development of this IT asset disposition (ITAD) market includes the changing IT industries, rising usage of digital devices like laptops, tablets, and phones, and raising small and medium enterprises are the significant factors driving the requirement for the ITAD market. However, the high cost of investment and lack of awareness of the benefits associated with the IT asset disposable among users will be the restraining factors that are hindering the development of the IT asset disposition (ITAD) market.
The ITAD Market Insights
The IT sector has gone rapid advancement due to the introduction of various technologies such as cloud computing, cognitive computing, Big Data analytics, and Web of Things (IoT), helping expand businesses globally. The growing utilization of ICT apparatus combined with the decreasing life cycle of IT products is expected to create the demand for businesses to eliminate the digital waste securely. As a result, the substantial increase in e-waste creation is upsetting the environment, and also to minimize the side effects of waste, there is a rise in demand for IT asset disposition (ITAD) across the globe.
In this circumstance, it is natural to wonder how the advancements in cloud computing technology have given a boost to the growth of the ITAD market. Let us see some of the important factors that have made it possible and continue to do so, helping ITAD companies like StarPC Excess doing more business as well as experiencing a decent level of growth during the past decade.
Reason No.1 Decommissioning of On-Premises Hardware and Total Migration to the Cloud-Based Operations
No doubt about it
Cloud-based services have advanced much and have reached the level of capability to offer businesses the ability to run their entire business through their cloud-based platforms. Now due to this, the businesses are more convinced that it is beneficial to migrate their operations from their on-premises setups to cloud-based systems.
When they are migrating to the cloud-based platforms, these businesses find that they no longer need the hardware they have been running in their on-premises setups.
They look for the right ways of disposing of the entire range of data center and computer hardware like servers, cables, network gears, storage devices, monitors, switching and routing devices, etc.
They also want to get rid of the support setups they have been maintaining as a part of their on-premises setups like security systems, heating and ventilation systems, uninterruptible power systems, etc.
This equipment is no longer needed by these companies that have chosen to migrate to the cloud-based systems. Though this equipment has not reached the end of the lifecycle stage, they have become obsolete and is not needed by these companies.
So, ITAD companies like StarPC Excess are called in to take charge of the decommissioning of the equipment so that they can be recycled in an ecologically responsible manner. When these companies take the equipment for disposal, they do not send them for recycling as e-waste.
But they refurbish most of them and sell them for reuse, thus recovering a good amount out of the perceived e-waste. Due to this, these ITAD companies can pay more money for the obsolete equipment so that the companies can recover a part of their investment back from the amount they get from ITAD companies.
Reason No. 2: Necessity for Data security
Imagine this
When the companies decide to shift their operations to cloud-based systems and no longer use the on-premises data centers and other connected equipment, the ITAD market comes into the picture by way of offering a high level of data security for the data contained in the IT equipment and data storage devices that are to be disposed of.
The companies were running their business through their on-premises data centers and IT infrastructure. Now all of a sudden decide to migrate to cloud-based computing; they find the need to completely and securely wipe off the business and sensitive data contained in their IT equipment that they want to dispose of now.
The ITAD market is well versed in the Data Security and Data obliteration services from the IT equipment they take for recycling and resale. They employ innovative and robust systems and applications to take care of IT equipment disposal’s data security aspect.
Due to this, they can use their modern technologies to completely wipe off the data from the storage and other IT equipment before they are sent for resale or recycling as e-waste.
Thus, cloud computing has added a new important dimension to the activities of the ITAD companies. Any responsible company worried about the security of the data contained in their IT equipment must have to call in a reliable ITAD Company to take care of the data removal service as a part of their IT equipment disposal services.
Thus, the ITAD companies assure the Companies they take the IT equipment from assure data sanitization services and prevent the sensitive business data from getting into the wrong people’s hands. Towards this, ITAD companies like StarPC Excess are offering specialized services for data Wiping and data sanitization and undertake an efficient data security management service with 100% safe data handling processes for their customers.
These ITAD companies are also offering audit reports with the details of the status of the data wiping or storage device destruction for each of the data containing equipment entrusted to them as a part of the cloud migration process. Thus the ITAD services are becoming an indispensable part of the cloud migration and ensure peace of mind to the Companies with their foolproof data handling services.
Reason No. 3: Help in Environmental Protection
You’ve heard this a million times
The ITAD market is taking responsible steps toward environmental protection by preventing IT equipment’s improper disposal as ordinary e-waste. When a business migrates to Cloud computing and shuts down its on-premises IT setup, it is forced to dispose of large amounts of IT and related equipment even before attaining the end of the life cycle. When they are disposed of as normal- waste, they are simply recycled and dumped in landfills along with other waste material.
The hazardous heavy metals in the recycled IT equipment become a serious source of groundwater contamination and become a constant threat by causing serious water and soil pollution.
To prevent these, ITAD companies are taking responsible steps by segregating the IT equipment that can be refurbished and repurposed in the used equipment market.
This way, they prevent a major portion of the IT equipment taken by them from ending up in landfills and are put to use again till they reach their normal end- of lifecycle stage.
This way, the ITAD market is saving the environment from the hazards of the severe groundwater, soil, and air pollution caused by irresponsible and unscientific recycling of IT equipment that was made useless due to the migration to the Cloud computing platforms.
Thus, the ITAD companies are saving the environment by resorting to maximum repurposing and minimum scientific recycling of the IT equipment that is being disposed of by the companies that have migrated to Cloud computing platforms.
Reason No. 4: Recovery of the Cost of The Equipment
Sounds good?
The ITAD companies help their customers recover a part of the amount they invested in the IT equipment that they are finding useless now due to the shifting of their operation to cloud computing. When a business decides to shift its operations to cloud computing and wants to dispose of its surplus, and redundant on-premises IT infrastructure, the ITAD companies take them at a better price than other ordinary scrap dealers.
The ITAD companies take the businesses’ IT equipment to resell them in the used equipment market and find users for that equipment among the people who want to repurpose those for less intensive purposes.
This way, they know the intrinsic value of various equipment and take them far better than the local scrap dealer who will take the IT equipment only for recycling.
This way, the ITAD companies consider every piece of equipment they are taking based on their resale value and, as such, offer better pricing for the unwanted equipment. Due to this, the business that is disposing of its IT equipment can recover a considerable part of its investment made on the equipment they are selling now. This gives them cost savings and extra funds in their hands that can be used for cloud migration purposes.
Reason No. 5: Compliance With E-Waste Disposal Regulations
Does this sound familiar?
As the management of e-waste is becoming a staggering problem for Governments and local bodies, they have enacted and enforced a lot of regulations for the proper management of e-waste in a scientific and eco-friendly manner.
This is giving additional opportunities to ITAD companies like StarPC Excess, which are dealing with the e-waste generated by businesses that have migrated to the cloud platforms.
As the local bodies and Governments of the present days are stringent in making the businesses comply with their e-waste management regulations, they are finding the ITAD companies as their saviors for the strict compliance of these regulations. Due to this, the ITAD companies are finding more business, enabling them to find steady growth in their business activities.
Conclusion
The emergence of Cloud computing technology has made thousands of businesses migrate to them, making enormous amounts of IT equipment redundant and unnecessary. The ITAD companies are utilizing this opportunity to help the businesses decommission their on-premises IT infra, provides a higher level of data security and management solutions. They help them recover a part of the investment and help the companies comply with the e-waste disposal regulations.
Thus, the growth of Cloud computing is adding more growth to the services of the ITAD companies.
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