Complete Guide to IT Asset Disposal

Introduction

By correctly disposing of IT assets, organizations can reduce costs, improve productivity, minimize security risks, comply with environmental regulations and maximize their green footprint. This guide outlines key stages and processes in disposal, including compliance, environmental factors, best practices for recycling and reuse, and how to use an IT asset management system to manage the data and associated processes.

You can explore the disposal and other lifecycle capabilities of xAssets IT Asset Management Software in our Full Lifecycle page.

IT Asset Disposal Lifecycle

IT asset disposal follows these phases:

Decommissioning can include a phase to consider whether the asset can be repaired, repurposed, disassembed, or redeployed within the organization as alternatives to disposal.

Role of IT Asset Management in Disposal

ITAM systems enable tracking of asset disposals. Core functions include:

• Obsolescence. Determine which assets are obsolete based on capability, specification, age, reliability, production units, TCO, disuse, or warranty status
• Inventory Management. Storing the asset status, condition, importance, location, user, and associated data to facilitate correct decision making
• Tracking each phase of the transition from "in service" to disposal
• License Management. Identifying software licenses associated with the hardware for deactivation or transfer
• Disposed assets continue to be stored in the asset register indefinitely
• Reports covering all past disposals

Data Sanitization and Compliance

Data sanitization prevents security breaches. Regulatory standards like GDPR, HIPAA, and ISO 27001 define procedures for data destruction.

Techniques include:

• Overwrite disks with random data or zeroes over the original
• Physical Destruction. Shredding or incinerating hard drives for irretrievable data destruction

Note that degaussing is rarely of use now that most drives use SSD type technologies

Data sanitization steps should be recorded in the ITAM system, this includes status changes to the asset record, a dropdown to select the action taken, the person who performed the action, and notes documenting each action.

Environmental Considerations in IT Asset Disposal

Disposing of IT assets should comply with environmental regulations, including:

• WEEE Directive (UK): Governs electronic waste recycling and recovery processes
• WEEE Directive (Europe): ditto
• R2 Standard (US): Best practices for responsible recycling of electronics
• Circular Economy Initiatives: Promoting reuse and refurbishing to minimize waste

ITAM systems help compliance by tracking disposal methods and associating assets with recycling certifications. In cases of reuse, they can document repairs and hardware/software updates.

Recycling and Reuse of IT Assets

Recycling and reuse minimizes environmental footprint and reduces disposal costs.

• Breaking up devices into reuseable components
• Repair devices for internal reuse, donation, or resale. ITAM systems can track these assets

The ITAM system should enable categorizing assets based on their condition and assign workflows for the chosen recycling or reuse option

Vendor Management and Certification

Using certified disposal vendors ensures compliance with environmental regulations and security standards. ITAM systems should track the certification status of third-party disposal partners and maintain detailed records of each asset's disposal route.

• Ensure vendors are certified under standards like ISO 14001 (environmental management) and ISO 27001 (information security)
• Each disposal must result in certification from the vendor, which should be recorded in the ITAM system for audit purposes

License Reclamation and Recovery

Software is expensive! When hardware is decommissioned, associated software licenses should be reclaimed or transferred to other devices if they are reuseable.

• Ensure licenses are uninstalled and are available for redeployment or transfer
• ITAM systems can track the deactivation of licenses on decommissioned devices and the transfer process to new hardware

Failing to properly reclaim licenses can lead to unnecessary costs from software vendors for unused licenses.

Disposal Documentation and Audit Trails

Disposal records must be auditable for compliance with internal policies and external regulations. ITAM systems should generate comprehensive documentation, including:

Challenges in IT Asset Disposal

Key challenges include:

• Compliance with regulations, which vary by region, can be difficult to manage manually
• Failure to wipe data from disks can lead to breaches and fines
• Tracking the disposal process to ensure minimal environmental impact and meet recycling and green footprint goals

ITAM systems help address these by tracking changes, automating workflows, and documenting compliance actions.

Managing Asset Disposals within an ITAM system

Some ITAM systems including xAssets IT Asset Management Software incorporate the functions needed to manage disposals at scale. This includes:

• Bulk disposal, many assets can be marked as disposed in a few clicks
• Disposal approvals, so managers, teams or users can be notified of an intended disposal and can accept or reject each stage
• Notifications that disposal processes are pending, in process or completed
• Accounting for disposals. This includes removing the asset from the balance sheet and writing gain and loss on disposal into the profit and loss account with associated documentation covering sale values and cost values
• Integration with vendor portals such as Dell and Lenovo warranties can help determine which warranties are expiring
• Automated workflows to manage the disposal process
• Tracking vendor certifications