
The breakneck pace at which digital transformation is occurring is dizzying. From cloud migration to super-charged network speeds to artificial intelligence, we can’t get enough technology or innovation in our professional and personal lives.
Three players in the information technology (IT) industry are feeling these growing pains deeply: IT managers, IT asset disposition (ITAD) vendors and resellers. Will these groups choose fight or flight?
For savvy IT professionals, now is the time to think of these challenges as opportunities, work together and forge ahead.
Shorter asset life cycles
What does digital transformation mean to IT asset and data center managers? It means keeping up with the Joneses, or better yet the Googles, Ciscos and Amazons. They need the latest and greatest networking equipment to ensure that their end users remain productive. They also need to know that data flying through the ether are secure. Encryption, security patches and training may ward off cyber attacks and spammers in real time, but what about the shortened life cycle of all the assets moving and housing all that data?
What happens to all that gear as its obsolescence is accelerated in an ever-changing digital ecosystem? For the IT professional, they are hoping to dispose of it responsibly and, ideally, use it to infuse money back into their budget or to get credit through an equipment buyback program.
The ITAD company as a unifying subject matter expert
IT managers want to upgrade their equipment quickly, economically and responsibly. They want a flexible, agile partner who will get in, get out and evaluate their gear for resale or credit. If they are in a regulated industry, they need to know that all compliance requirements are met. ITAD vendors are a critical part of closing the loop in this process.
And this is also the point where the loop opens for the reseller.
In the ITAD space, as technology advances, so must ITAD solutions. The ITAD space is all about used equipment, so ITAD companies have to navigate a multitude of brands, a bunch of data center component types and servers, drives and peripherals galore.
Nothing is black and white in this space. Challenges like secure data destruction, compliance, product variety, transportation and chain of custody processes all need to be addressed. It’s a complex process that is labor-intensive from the time goods are picked up to the time they arrive at the ITAD facility.
ITAD solution companies must ensure that their data destruction services are certified, that all asset identification numbers are matched with serial numbers and that clients are provided the necessary audit reports and compliance documentation.
A qualified ITAD provider will be certified by the National Association for Information Destruction (NAID), Phoenix. This stringent certification guarantees that its facility has been audited, its processes are clear and documented and its employees are fully vetted and trained. A successful ITAD company also will be brand-neutral to be a one-stop shop for enterprise IT managers. Plus, they will have deep global connections with resellers who can then move these assets through their web of brokers, small business enterprises and corporate clients.
The reseller’s role
By partnering with an ITAD company, resellers can simplify their process and focus on their bread and butter: sales. These partnerships allow value-added resellers (VARs) to focus on selling not just products but also services. After all, the reseller as a trusted advisor is what the market has been demanding for years.
The peace of mind that a certified, established ITAD vendor delivers is only one advantage of the reseller-ITAD relationship. Here are three ways a full-service ITAD company helps the reseller:
- Become a trusted partner – Resellers can grow their client base and retain those clients by offering IT asset managers a complete IT asset management solution from secure data destruction to equipment buybacks.
- Decrease operating expenses – “Bolting on” ITAD services can be expensive and a distraction from a VAR’s core business. A good ITAD partnership helps the VAR manage a client’s entire IT asset life cycle, eliminating warehouse expenses the time and effort required to coordinate equipment take-outs and the complexities of reselling multiple brands and component types.
- Increase revenue – Some ITAD vendors offer resellers incentive programs for referring their enterprise data destruction services and buyback programs, thus adding incremental income.
In short, the challenges of digital transformation can result in headaches and a negative impact on profits and productivity for IT asset managers, ITAD vendors and resellers. But building strong relationships can help alleviate these challenges, remove complexities and mitigate risk, allowing all parties to not only succeed but to flourish.
With more than 35 years of industry experience, Jeff Londres is the CEO at NextUse, a NAID AAA-certified global ITAD company specializing in secure data destruction and server, storage and networking equipment buyback programs for enterprises, data centers and recyclers.
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