IT Asset Disposition: Everything You Need to Know

Winter's wrapping up, and you know what that means — it's time to declutter. After all, this time of year is all about getting rid of the old and making life more organized. But have you ever thought about including your IT setup in your spring cleaning?

This is where IT asset disposition, or ITAD for short, comes in. It's a fancy way of saying reuse, recycle, repurpose, repair, and responsibly dispose of old tech in your business. This includes computers, iPads, phones, network gear, printers, and servers — basically all the stuff that’s been collecting dust in your office.

But how does ITAD work, why does it matter, and why should you let a professional do it for you? Let's break it down. 

What is ITAD?

ITAD involves tracking, managing, and optimizing all the IT assets in your organization. One of its main objectives is to repurpose, recycle, or dispose of any unwanted infrastructure, such as old hardware, in a safe and environmentally responsible way. You could do it yourself, but let's be honest — there are experts who can do it better (and faster).

Tasks associated with ITAD may include:

• Deleting data and wiping storage devices that contain information you no longer need.
• Taking broken or old hardware, such as laptops and tablets, to a recycling center.
• Repairing hardware so it serves a new purpose.
• Reusing equipment, such as turning old internal hard drives into external hard drives.

Why ITAD Matters

ITAD is important for numerous reasons, including data security, financial benefits, and protecting the environment.

Compliance and security

SOC 2 is a framework developed by the American Institute of Certified Public Accountants (AICPA) that outlines the criteria for managing customer information. ITAD can help you comply with this framework by ensuring that you wipe data you no longer have a use for. This may involve physically destroying hardware or using special software to delete data for good.

If your business is in the financial sector, you'll also want to adhere to the Financial Industry Regulatory Authority (FINRA) by protecting and disposing of unwanted data. ITAD helps you do this by maintaining data security and discarding aging assets in an environmentally friendly way.

Other regulatory standards like HIPAA (Health Insurance Portability and Accountability Act), PCI DSS (Payment Card Industry Data Security Standard), and NIST Cybersecurity Framework (NIST CSF) also emphasize strict data protection protocols—especially regarding personally identifiable information (PII). 

Failing to comply with these regulations not only puts sensitive data at risk but also exposes your organization to fines, legal consequences, and severe reputation damage. Breaches or improper disposal practices can erode customer trust, attract negative press, and have long-term consequences for your brand image. Proactively implementing ITAD best practices shows your commitment to compliance, data security, and corporate responsibility.

Financial benefits

Your old gear might be worth more than you think. By selling your old infrastructure, you can generate additional cash for your business. Many companies purchase used IT assets, including servers and networking equipment, and then refurbish them. Alternatively, you can list your gear on eBay and sell it to the highest bidder.

Knowing what to sell and what to discard can be a little tricky. Equipment in good condition will have a higher resale value, especially if it's still under warranty. You may even have an item of high value without realizing it. In July 2023, a 4GB launch model iPhone sold for a massive $190,000 at an auction!

Consider taking assets beyond repair to a recycling center, especially if you can't repurpose them in any shape or form.

Environmental and ethical responsibilities

More and more companies want to be sustainable and ethical these days, and for good reason. Taking old hardware to a landfill can be harmful to the environment and release chemicals into the atmosphere, with data centers having the worst carbon footprint.

ITAD promotes more responsible waste management and can reduce the environmental impact of IT assets. It encourages companies like yours to dispose of equipment safely and repurpose it when possible.

The ITAD Process

Here's how to incorporate ITAD into your organization:

• Catalog IT assets: Identify and record all the IT equipment in your company, including hardware, software, and cloud services. You can use automated discovery tools to scan your network for resources.
• Determine resale potential: Find out the current market value of your IT assets and consider selling the items that might generate the most cash. Websites like eBay and Craigslist will give you a good idea of what your equipment is worth.
• Secure data destruction and certification of disposal: Getting rid of unwanted data securely might involve physically destroying hardware or using special software. Whatever you decide to do, create a formal document that certifies how you went about the process and complied with industry frameworks.
• Properly recycle and dispose of assets: E-waste recycling centers allow you to dispose of IT infrastructure safely, ensuring that harmful chemicals don't damage the environment.

Use Cases for ITAD

There are many use cases for enterprise IT asset disposition, including:

• IT spring cleaning: Think of ITAD as a spring cleaning for your IT assets, allowing you to declutter your office space and remove items you don't have room for.
• Office moves and downsizing: ITAD can be beneficial if you're moving to a new business location or reducing office space. By removing old and unwanted IT assets, especially large ones like servers, you'll have additional space for your employees and be able to create a more productive working environment.
• Asset management and long-term IT planning: With ITAD, you can manage your assets and plan for the future. For example, you can identify equipment you no longer use and replace these items with new resources that provide more value.

How to Choose an ITAD Provider

IT asset disposition can be a long and complicated process that your team might not prioritize or just continue to put off. Rather than having all of your old equipment continue to pile up in the back storage closet, you can work with a third party to take this off your plate. 

At Ripple, we track your assets and their lifecycle, our Strategic Advisor will discuss the asset strategy with you and we take care of refreshing your assets in addition to recycling and disposing of old devices. Contact Ripple today to learn how we can help keep track of your asset lifecycle and dispose old assets in a secure way. 

FAQs

What is IT asset disposition?

ITAD involves tracking, managing, optimizing, and disposing of IT assets in your company, such as hardware, software, and cloud platforms.

What is the IT asset disposition process?

IT asset disposition includes various tasks, such as cataloging IT assets, determining their resale potential, recycling infrastructure, and securely destroying data.

Why is IT asset disposition important?

By investing in ITAD, you can comply with industry frameworks, improve your environmental credentials, and create a more productive work environment.

Does my MSP handle IT asset disposition?

While some MSPs include ITAD as part of their lifecycle management or end-of-life services, not all do. Always ask your MSP for clarity on how they handle retired assets, and if in doubt, partner with a vendor who specializes in secure and sustainable IT asset disposition. At Ripple, we can work with your team to create the best game plan for removing this equipment securely.

How to choose an ITAD company?

Select a certified third party with knowledge of data destruction laws that is transparent about how it disposes of your information and assets.