Three Quick IT Liquidation Tips

Posted by Frank Milia

Aug 1, 2017 10:25:22 AM

Evaluating an IT liquidation provider to purchase your corporate IT equipment can be a difficult task to accomplish. There are a good deal of variables that can lead an IT manager down a path where he or she will be unable to accurately evaluate competitive quotes, incur unnecessarily high service costs, or set incorrect expectations of value returns that will not be achieved at the end of a project.

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Here are some quick tips to make you aware of potential pitfalls and help you eliminate these variables.


1. Know what you’re selling. Having a good understanding and detailed inventory of the models, specs, functional conditions, and cosmetic conditions of your equipment is the most empowering tool you will have available in the process. The more details and assurances you’re able to provide to a vendor the more comfortable and competitive the solution the ITAD provider will be able to offer. Its understandable most IT departments will not have the resources to test equipment and note cosmetic issues on every machine, but if you’re aware of equipment defects and issues provide this information to your IT liquidation vendor and get an understanding of what the cost reductions will be ahead of executing the project.


2. Understand your service level requirements. Make sure to provide all IT liquidators bidding on your project with detailed information on what data destruction service level, packaging requirements, building access requirements, shipping requirements, or any other data and asset management requirements you may have. This can be particularly important when the service level will affect the value of the equipment. For example, if you choose to require a vendor to shred the hard drives from a laptop liquidation there be additional costs for the destruction services and the machines’ overall value will be decreased from removing the hard drives.


3. Set a rigid time frame for the project. The secondary markets fluctuate rather quickly and most IT disposal vendors will not be willing to hold aggressive return rates in effect for longer than 10 business days. Keep in mind that if you’re planning a project 30-90 days out to set these expectations upfront so the vendors are able to give realistic pricing that can be met. We suggest in these situations to get the IT asset recovery estimate from vendors early in the planning stage and qualify capable providers. You can then re-price the project and make final decisions closer to the release of the equipment.

Having a good understanding of your disposal inventory, conditions of the equipment, service levels required, and time frame of project will allow you to control the process and meet the expectations set with your IT asset disposal vendor.

Looking for a tool to get the most value back on your company's IT disposals?

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Topics: IT Asset Disposal, IT Asset Disposition, eWaste Disposal, Risk Management, IT Liquidation

Hard Drive Disposal Options

Posted by Frank Milia

Jun 2, 2017 12:38:46 PM

Proper handling of end of life computer equipment and electronic media is critical to avoiding costly data breaches and debilitating exposures to your business and client data.  Your options for hard drive disposal should not be limited by archaic security policies, vendor capabilities, or lack of in-house expertise or access to industry leading tools.    

The below is a quick guide to the common tools and methods utilized by sophisticated IT asset disposal providers and IT departments alike. 

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Binary wiping and secure erasure:

Many times referred to as Department of Defense (DoD) three pass erasure, secure erasure writes multiple passes of binary code over a drive’s data to eliminate the path to the data.  The term DoD erasure is an asset disposal industry and IT shorthand and it should be noted that no software or erasure method is specifically endorsed by the DoD.  The method is a commonly accepted software tool for destroying data on magnetic and solid state media.

Having a contracted erasure service or in-house capability to securely erase machines is ideal to reuse machines in your environment, sell machines to a computer liquidator at optimum value, and ship or relocate machines that are not encrypted. 

Enterprise erasure tools should include reporting and verification utilities that allow organizations to save detailed certificates of destruction to the NIST 800-88 standards as well as identify drives that do not wipe to one hundred percent satisfaction.  When drives fail to wipe securely the user can quarantine and use another physical destruction method. 

DoD erasure is a method approved in the NIST 800-88 Guidelines for Media Sanitization in certain situations, but is not recommended for media that has higher risks associated to an exposure or contains top secret data. 

Hard Drive Shredding and Media Pulverization

Hard drive pulverizing or media shredding are terms commonly used for the industrial shredding of electronic media.  Although the equipment can be expensive for many business to own and maintain, many organizations utilize the method with the help of various asset disposal or document shredding service providers.  This method is ideal for quickly and cost effectively destroying large quantities of hard drives, optical media, flash drives, and other electronic storage. 

Hard drive shredding can be performed off-site at a vendor’s facility or on-site utilizing specialty shredding equipment typically deployed by the tier one IT asset disposal providers like IT Asset Management Group. 

Hard Drive Punching

Smaller machinery like hard drive punchers are ideal for eliminating the risk of shipping live and accessible data by first punching the drives before shipping or relocating the drives for the final shredding and recycling process.  Punchers are utilized where the large footprint of a shredder would not be possible or cost effective.  This method is ideal for small quantities of drives and is typically not cost or time effective for the destruction of large quantities of media.

Much like hard drive shredders there are hundreds of different kinds of hard drive punchers and some are not as effective for solid state drives or other types of media.  It is important to research and understand what a specific machine or service provider is able to do on a case by case basis. 

Degaussing Hard Drives

Degaussing hard drives is another solution ideal for smaller projects where an industrial hard drive shredder may not be available in the geographical area or economically appropriate for the project.  Degaussers use powerful magnets to destroy data on hard drives and other media but does not work for solid state hard drives or flash media.

Degausser machines are no longer the prevalent tool that they once were due to the superior output of shredders and more effective verification methods of enterprise erasure software utilities.  Nonetheless, the tool remains active due to security policies that have been written and not updated or where other tools prove to be near impossible to deploy.

For more information on appropriate methods and documentation of data destruction practices please review our short guide to NIST 800-88.

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Topics: IT Asset Disposal, data destruction, eWaste Disposal, Risk Management, hard drive disposal

The 4 Knows of IT Asset Disposition

Posted by Charles Veprek

Apr 25, 2017 11:14:22 AM

The best place to start is the beginning of course, regardless if this is your first IT Asset Disposal (ITAD) project or your hundredth. An investment in knowledge pays the best interest and knowing the “Four Knows” can help return that interest for your surplus IT equipment.


1. Know what you need
     a. Does your company have:
          i. A data destruction policy or security requirement?
          ii. A no reuse policy?
          iii. Any specific reporting requirements?


Knowing your company’s requirements for ITAD projects will ensure all quotes are based within a given framework.

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2. Know what you have
     a. Do you have:
          i. An accurate equipment inventory?
          ii. An understanding if the equipment is still functional?
          iii. All the peripherals for the devices?


Knowing the project inventory will ensure that project quotes and project timelines are accurate.


3. Know who you work with
     a. Have you:
          i. Researched R2 recyclers and eSteward vendors?
          ii. Performed vendor due diligence?
          iii. Asked for a referral?


Knowing your vendor’s policies and procedures will reduce exposure risk and improve vendor selection.


4. Know your projects potential
a. Have you:
          i. Received multiple quotes?
          ii. Inquired about donation possibilities?
          iii. Asked your vendor to work with your VAR?


Knowing the value of the equipment will ensure you don’t get rid of it for free when you should be getting capital back.

An investment in knowledge pays the best interest and knowing the “Four Knows” can help return that interest on your redundant IT equipment.

 

Looking for a tool to get the most value back on your company's IT disposals?

Download the ITAMG Inventory Template Today:

Tips & Inventory Template

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Topics: IT Asset Disposal, data destruction, eWaste Disposal, Risk Management

4 Lessons from Star Wars About Data Destruction and IT Asset Liquidation

Posted by Charles Veprek

Dec 17, 2015 5:24:47 PM

A long time ago, in a galaxy far far away…people still had the same IT problems and concerns we deal with today. But rather than just using the force, companies can use these four lessons to help improve their excess IT equipment process: 

1. Protect your organization from losing the death star plans – Data and confidentiality breaches are a major liability for all organizations. In Star Wars, Darth Vader spent the entirety of a movie looking for the stolen Death Star Plans and that breach ultimately lead to the destruction of the Death Star. The average US data breach can cost an organization over 4 million dollars. Ensuring that your organization is following guidelines from documents like the NIST 800-88 can protect you from lengthy and costly investigations related to data breaches. This will help prevent your company from ending up like the Death Star and hearing an auditor say “they find your lack of data security disturbing”. 

IT Asset Disposal Services

2. Make sure that your IT storage area doesn’t look like the inside of the Jawa’s Sandcrawler – Sometimes it may seem like an easy approach to storing your excess IT equipment...just throw it into a room or storage location. But by doing so you could be devaluing the equipment due to damage that occurs, you could increase lost production time from staff that have to recover an asset and it will increase the amount of time your vendor will require to remove the equipment. Spending slightly more time organizing equipment for potential liquidation could potentially increase your bottom line revenue while increasing productivity of your department during vendor removal and asset recovery. 

3.Can your vendor help you find those assets that you’re looking for? – While trying to find the stolen Death Star plans, the Stormtrooper is famously told “these aren’t the droids you’re looking for”. What happens at your organization if an asset is mistakenly decommissioned and the search begins? Standardized reporting should be an integral part of your IT liquidation and removal process (both internally and externally). Many vendors provide these reports, but sometimes getting the answer may take time. Industry leading vendors now offer client portals that allow you to independently and expediently find those assets you are looking for and offer transparency of the process. 

4. Is that deal you made “getting worse all the time?” – Lando Calrissian makes a deal with the Empire and at the time it seemed like the best option. As time goes on, he recognizes “this deal is getting worse all the time”. The same can be true working with any vendor that provides services. Customer service, reliability and maximum revenue generation is high at the beginning. As time goes on, some vendors will let one or all three areas begin to lapse and you have to wonder - what are the long terms benefits for your organization to maintain the relationship? Getting competitive quotes from other vendors and asking questions about what they can do to improve the process can ensure optimum performance in your company’s IT asset liquidation and data security projects. Any vendor that tells you they are the only ones who can do this, remember what Yoda said “No…there is another”.

Looking for a tool to get the most value back on your company's IT disposals?

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3 Myths About IT Asset Disposal and Electronics Recycling

Posted by Frank Milia

Sep 18, 2015 3:37:56 PM

Many companies in the electronics recycling and IT asset disposal industry utilize scare tactics and try to focus a buyer’s attention on false narratives to win new clients and increase profitability of contracts.  We believe in transparency and educating our clients.  Here are some facts in response to three common myths being disseminated by disposal service providers. 

The Myth: Allowing a disposal vendor to reuse or sell your equipment creates additional liability for your organization.  Allowing the third party vendor to sell the equipment will be a problem for your organization since the item can be found in a landfill in the future or can otherwise be utilized inappropriately. 

Some of our competitors use this inaccurate storyline to convince organizations to dispose of valuable equipment at an inflated cost under the premise that the vendor will be destroying the equipment and no asset will be sold as a functioning unit that can be traced back to the original owner.  Whatever the IT asset disposal vendor’s motive is, the idea that all surplus computer and IT equipment must be dismantled and destroyed to remove downstream liability is flawed and environmentally irresponsible. 

The Fact:  With best practice data destruction and chain of custody processes in place selling surplus assets is a secure, environmentally responsible, and an economically practical solution for retired computer equipment.  All organizations should document IT asset disposal work with serialized inventory reports, transfer of ownership statements, bills of sale and link transactions to a formal master service agreement

The IT asset disposal vendor should be utilizing an inventory management system that can track the asset from receipt from client to the sale to end user or downstream partner in order to address any unlikely disputes or exposures that could be inappropriately traced back to the disposing entity.  

Consider other common situations of transferring assets such as selling a car.  Would one expect to be liable after legally selling a car with appropriate documentation to a buyer who then goes on to cause an accident? 

Call Them Out:

If a vendor has made this claim ask him/her to provide proof of a real world example where an organization has faced a fine, legal trouble, bad publicity or any other liability related to the sale of company IT assets.  Ask the vendor to provide any legal documents to support this claim.   

The Myth: Only vendors with this (insert any third party certification here) are doing things right and any other provider will be breaking environmental regulations and putting your organization at risk. 

When a competing vendor has very little to display that will separate their firm from the pack they might inflate the importance of the specific third party certifications they hold and make false claims that these certifications are the end all to your organization’s liability concerns.

The Fact:  There are two prominent certifications (R2, e-Stewards) commonly obtained by ITAD providers and these certifications include requirements to hold ISO 14001 as well as OHSAS health and safety management systems.  Both certifications are very similar, but neither guarantees a vendor will be compliant with your company’s environmental policy or legal regulations.

Doing your own vetting, documenting due diligence, and implementing a formal agreement is as important as your vendor maintaining a third party certification. 

Call Them Out:

If a vendor has made the claim that the certification they hold is superior or a must have certification ask them to prove this with metrics and supporting facts.  We also urge you to do your own research and see that the EPA and the Federal Government's policy, driven by an executive order from the President of the United States of America, values these certifications but does not favor one over the other.    

Myth: If your current provider is paying you for equipment or providing a no cost solution they are breaking environmental regulations and must be dumping the waste illegally either domestically or internationally. 

Many competitors utilize this scare tactic to get valuable equipment from companies and collect inappropriate fees. 

The Fact:

If an IT asset disposal vendor is buying your surplus equipment at a reasonable value it would make no business sense for that vendor to then throw away the stock or illegally export it as waste.  When a vendor pays for equipment your organization is at less of a risk.  In order to sell the surplus equipment the ITAD vendor will have to wipe data, clear networking equipment, re-image, and warranty the equipment as a functioning system to another buyer.

All ITAD providers should be able to provide a pricing model that accounts for the market value of a client’s disposable equipment.  If the equipment does not have value the client should incur a fee for destruction and management services.  If the equipment has some value but only covers the operating costs of the vendor a no cost solution can be appropriate and fair for both parties.  If the equipment’s value significantly exceeds the logistics and operating costs of the disposal vendor a credit or cash back for the equipment is due to the client. 

Call Them Out:

If a vendor makes this claim again ask them to provide a real world example where assets sold to a computer disposal provider at reuse value created a liability, fine, or negative publicity for the organization disposing of the assets.  Ask the vendor why would a company pay for a company’s disposable assets, or even take on the logistics costs of removing the equipment if they could not turn the product back into a profitable sale on the secondary markets. 

Looking for a tool to get the most value back on your company's IT disposals?

Download the ITAMG Inventory Template Today:

Tips & Inventory Template

more

Topics: IT Asset Disposal, eWaste Disposal, Risk Management

    

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