Used IT equipment: Millennials push enterprises into the circular economy

Prior to the pandemic and economic downturn, IDC witnessed a renewed interest in the used market to meet sustainability pledges and other initiatives. At the same time, interest in recycling IT equipment has increased to help meet promised goals.

And as the employee population shifts to millennials, sustainability pledges have become more important. Younger workers are pushing their employers for more sustainability-minded policies, including throughout the vetting process for vendor and partner selection. IDC believes achieving success will require building consensus with all internal stakeholders, external suppliers and partners, as well as establishing financial metrics to encourage adoption.

On the vendor side, almost every large IT vendor has a recycling and refurbishment group, either in house or through a partner. But it has been a struggle to sell used gear because customers wanted to buy with warranty and support, Middleton says.

Today, IDC finds organizations are buying used equipment to add capacity rather than using it as part of an equipment refresh, and vendors are offering warranties.

“It adds capacity without doing a whole refresh, so it saves you money. Vendors are offering refurbished equipment with a full warranty, so it enables the vendor to still have a relationship with that customer,” Middleton says.

Even if you aren’t buying used, it’s a good idea to sell your old gear rather than dispose of it.

“If you don’t have a plan in place for [end of life] assets, that could cost you money. If you recycle and trade in gear, you’re getting cash back you can reinvest in new equipment,” Middleton says. “The stories we’ve heard for years from companies with old assets is they don’t know what to do with it. Well, sell it and use it to invest in your next infrastructure.”