Converge Posts Revenue Growth in 2007

Peabody, Mass.-based Converge has announced that NextPhase, its IT asset disposition (ITAD) division, posted revenue growth of more than 130 percent in 2007.

According to the company, it expects additional growth throughout 2008 as enterprises worldwide continue to struggle with the security and environmental risks of replacing outdated computer equipment and other business technologies.

“IT asset disposition is fast becoming a new strategic imperative,” Chris Adam, director of ITAD business for Converge, says. “We estimate 500 million tons of hardware will be phased out this year just in the U.S. alone, and all that material poses an environmental impact as well as vulnerability for data theft. Toss out one laptop that hasn’t been thoroughly scrubbed and you can literally ruin your company, not to mention face environmental fines and compliance sanctions,” he adds.

After more than 25 years as a leading independent distributor of semiconductors and electronic subsystems, Converge launched NextPhase in 2005 to address this growing challenge.

“A Fortune 1000 company without an ITAD strategy is a ticking time bomb,” warns Adam. “The pace of business and the pressure to constantly innovate have created a natural but dangerous blind spot. Too few companies proactively plan for the phase-out cycle of the technology investments they are making.

To create a successful IT asset disposition strategy, Adam suggests the following:

• Know the penalties of noncompliance.  Improper data protection and environmentally unsound disposal of IT equipment could lead to significant fines, damage to a company’s brand reputation, breach of secure customer and financial data and lawsuits from shareholders or other company stakeholders.
• Compliance is not a moment—it is a process. Implementing new technology can take months or even years. Disposing of equipment is no less of a process and involves constant attention to quality and compliance throughout each step.
• Liability lasts a long time. You might still be responsible for safe handling of phased-out equipment even after it leaves your company. “Transfer of liability” issues and other hidden pitfalls of asset disposition frequently surprise companies without a strategic approach to ITAD.
• Charity might not be so charitable. Being “green” or philanthropic is not the same as being strategic about asset disposition. Donating legacy computers or divesting equipment to employees (via sale or auction) actually increases the risk of environmental and security penalties down the road.

Converge is a global supply chain partner for technology-driven companies. The organization’s three business units are dedicated to just-in-time distribution of electronic components, comprehensive asset recovery services and secure IT asset disposition. Founded in 1980, Converge has offices in Austin, Texas; Columbus, Ohio; Irvine, Calif. Singapore; and Amsterdam, Netherlands, along with support centers throughout Europe, Asia and the Americas. More information is available at www.converge.com.