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Posted Oct 28th, 2019

The IT Asset Disposition Industry Gets a Boost from Cloud Tech

Cloud and e-scrap go hand in hand. The ITAD market consists of companies responsible for disposing of obsolete or unwanted IT equipment. These include the large servers used in data centers for cloud storage or computing, such as Amazon’s AWS service which hosts websites and applications around the world.

This hardware must be decommissioned responsibly, ensuring that confidential or sensitive information is properly removed. The market continues to grow, and according to one estimate, by 2024 the global ITAD market will reach $18.8 billion.

“The market built up pretty heavily in the last half decade as the shift to doing more servers has exploded, from laptops and PCs,” ITAD expert Bill Vasquez said.

The growth of ITAD can be explained through a variety of reasons.

The Migration To Cloud Services

Cloud based computing has proved to be a powerful mover in ITAD industry’s growth. Servers, storage devices and other networking or infrastructure systems and assets must be properly disposed of, recycled, or purged.

The cyclical nature of obsolescence and hardware upgrades in the cloud industry have ensured continued growth for ITAD. In fact, some companies are even shifting to doing data center decommissioning alongside ITAD, as well as reselling data center equipment under new lines.

Promoting Data Security

ITAD and cloud computing companies have one thing in common: the protection of people’s data. Companies of integrity will ensure that no sensitive or confidential user information could be leaked upon the destruction or disposal of their equipment. ITAD provides a unique service that properly disposes the device and electronic data.

Some ITAD vendors will even conduct a thorough audit detailing each asset’s status of data cleansing and destruction. These acts contribute to greater transparency, and in turn, safer business practices.

Environmental Consciousness

Unfortunately, obsolete IT assets cannot be recycled and may end up in dumpsites and landfills, contributing to habitat destruction and radical climate change. ITAD companies are becoming increasingly aware of their role as asset disposers. Not only must the data be erased responsibly, but the actual hardware must be reused responsibly.

Today, ethical practices are being implemented that commit to zero-landfill initiatives or minimize environmental impacts. While there is still some distance to cover, the progress is promising and shows that ITAD companies are interested in protecting the environment.

Cost Recovery

Disposal may seem like a costly venture, but in practice can actually be lucrative business. While ITAD companies must erase data on the hardware, they are by no means useless. Indeed, some of them can be restored and even resold, recouping the potential losses from unused hardware.

Code Compliance

Policies enacted by governments across the world are shaping the future of ITAD. Notably, the GDPR regulation set forth by the EU has transformed how companies handle user data and notify data breaches. Organizations looking to comply with GDPR and similar data regulation policies must take extra care to destroy old assets.

Additional Factors

The cloud industry increasingly resembles an oligopoly, the rule of a few. Companies are being absorbed by much larger entities, such as IBM’s takeover of Red Hat or HPE’s acquisition of Cray. Cloud companies are consolidating and becoming more globalized. For example, Amazon’s cloud service is now in 200 different companies.

This may seem like bad news for ITAD vendors, but new enterprises will continue to require ITAD services as they are unable to afford an in-house service. Startups will transition from proprietary hardware to cloud hardware, and will require guides along the way. Even much larger companies will need to outsource some of their work depending on the countries they operate in. ITAD vendors have tremendous competition ahead, but they also understand that demand will be in popular supply for the foreseeable future.

Whether you are a cloud computing service looking for assistance with data decommissioning, or a startup that deals with sensitive server hardware, an ITAD company can ensure your company stays responsible in its disposal habits. Contact Securis today.

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