Cost of Ownership: With the advances in technology and manufacturing, new system performance has soared while the price has lowered dramatically helping to promote a depreciation rate of 6% per month on older equipment. This trend is leaving little to no residual value after 30 months. Though some organizations have successfully managed procurement and in-use lifecycle expenses, very few have effective programs for the substantial costs of end-of-life retirement. Many organizations avoid the problem simply by storing obsolete and unused equipment, which is illegal by Federal Universal Waste regulations after a period of one year.

Some companies have opted to use equipment for extended periods up to 6 years in an attempt to save costs although recent studies have proven that due to increased support costs, increasing recycling costs, and decreased employee productivity it is actually more cost effective to replace equipment on a 30-36 month refresh schedule.

Few companies have budgeted for the necessary space or manpower to dispose of end-of-life equipment. Fewer still want to spend the approximately $30 per unit that disposal of a PC typically costs. Fewer again understand all the intricacies that must be followed in order to comply with all the various laws to dispose of their equipment. Part of this problem has arisen because disposal costs have increased, while the prices of used PCs have dropped to the point where a typical system has little or no residual value after its intended lifecycle. In the past, an IT organization could dispose of equipment after three years and receive a few dollars back, but today that same equipment is more likely to incur disposal costs instead.aaa