According to leading research firm Canalys, the market for data centre infrastructure is poised to reach US$152 billion globally by 2016, with Asia-Pacific accounting for a quarter of this investment. Large data centres will lead this expansion, and much of such investments will be used to form the backbone of cloud and 'Big Data' services. So far, this growth has been fuelled by telecommunications and cloud service providers in China, India and other populous Southeast Asian nations where consumers are becoming more active users of social media and e-commerce, and companies are investing more heavily in data centres to analyse large chunks of information to mine consumer insights, and to provision for disaster recovery on the cloud to ensure business continuity.
Against this backdrop of burgeoning growth, IT asset recovery, a term used to describe the process of maximising the value of unused, pre-owned, or end-of-life equipment through effective reuse, is quickly becoming the preferred option for organisations today when they plan for the expansion of their data centre infrastructure.
Indeed, organisations are going through alternative and independent channels to procure data centre equipment to balance changing business requirements, shifting technologies and budget constraints. Where technology used to be a differentiator to a business, today it is no longer a privilege. It is very basic bread-and-butter. Every company needs to engage in some form of technology just to be on par with the rest of the competition. Against this background, IT asset recovery becomes a very natural option because it gives very attractive cost savings.
The Asia Pacific landscape
In Europe and the United States, the adoption of IT asset recovery is more widespread than Asia Pacific as enterprises have largely seen the value and benefits of adopting this practice. In these markets, IT asset recovery is a critical value creator within the IT department. While IT asset recovery is still relatively under-utilised in Asia Pacific, significant growth in this market can be expected for the following reasons:
With technology moving at a relentless pace, more often than not, equipment that has been deployed and continues to function well may have been discontinued by the manufacturer. When this happens, organisations are inclined to do a technology refresh. With IT budgets shrinking, using pre-owned or new-in-box equipment, such as (n-1) technology and below, provides significant cost savings of at least 30% as compared to buying equipment of the latest generation. The cost savings achieved through the purchase of pre-owned equipment can be further used to fund additional software or services, delivering greater value to an organisation. In this sense, IT asset recovery represents a form of capital conservation and optimisation for companies.
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