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Initially, many people question the wisdom of paying another company to haul away obsolete computer systems—believing that the systems still hold some value. However, many companies fail to assess the true costs of keeping those obsolete systems, and it's actually more cost-effective for companies dispose of old systems than to continue to store them. Here's a quick look at what it really costs to keep those obsolete computer systems:
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Steps
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Detail
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Data
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1.
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Number of stored computer systems and other electronics:
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2.
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Square footage of storage space for the electronics (Class A space: $34/sq. ft.; Class B space: $20/sq. ft. Class C space: $12/sq. ft.; and warehouse space: $5/sq. ft.)
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3.
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Monthly cost of storage:
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4.
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Multiply monthly cost of storage (No. 3) x 12=annual storage costs:
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5.
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Annual cost of security equipment and staff to secure access to and employee contact with obsolete computer systems (Mandatory to comply with new federal security/privacy laws)
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6.
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Annual cost of insurance for equipment not removed from inventory:
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7.
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Business property tax paid on equipment in storage each year
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8.
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Cost of moving obsolete equipment to storage facilities each year
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9.
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Cost of administrative and accounting fees to track obsolete assets each year:
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10.
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Cost of degaussing all computer systems and encryption of memory (Computer systems must be wiped of data to comply with new federal security/privacy laws; the average conservative cost of doing this is a minimum of $100 per PC system; the cost is much higher for servers and mainframes.)
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TOTAL
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Note: Add bolded item totals, No. 4-10, and find out how much those old computer systems and electronics are really costing your company compared to having them properly recycled with 5R Processors, Ltd.
(The above costs are based on national averages)
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