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Cost Justification
1) What are the hidden costs of continuing to store of old computers

  • Hidden costs include:
  • Cost of storage.
  • Cost of administration and inventory.
  • Business property taxes in more than 30 states.
  • Cost of securing equipment in storage to comply with new federal privacy laws.
  • Cost of maintaining software licensing on old unused equipment.
  • Cost of potential fines for violations of federal and state regulations that limit the amount of equipment that can be stored by site.

2) Can old computers be economically refurbished?

  • No.  It is not economically feasible to refurbish old systems.
  • First, as computer performance levels continue to improve, today’s advances usually cannot be installed on older machines.
  • Second, as operating systems improve, they usually will not run on older machines.
  • Third, as application software advances, these new, more sophisticated software usually will not run on older machines.
  • Finally, there is no way to economically cleanse data from old computers; it is much less expensive to pay to destroy the machine and re-cycle the materials, than it is to cleanse the data from an old system that may not even find a new home.

3) How much does it really cost to refurbish an old computer?

  • It costs between $335-$520 to refurbish computer hardware alone.
  • To properly refurbish a computer, all new software and an operating system must be re-purchased by either the refurbisher or the entity donating/selling the system.  Otherwise the original owner is in breach of copyright and has committed software piracy.  Of note, the fine for software piracy is $150,000 per application, per machine, per the Business Software Alliance.
  • In addition, you must factor the cost of time/labor and the software required to cleanse a machine.  According to analysts at the Gartner Group, the minimum number of overwrites that will cleanse a system is a 35-time overwrite, and that is still not the recommended method.

4) Let’s say that I really want to refurbish my system anyway…what would it cost?

  • A minimal system upgrade from an old Windows or DOS computer to a Windows 2000 system requires a host of new components. The minimum published price of these components in early 2000 averaged:
  • Motherboard + Pentium chip: $100-$150
  • Memory: $65-$100
  • 6-10 gigabyte Disk Drive: $75-$115
  • 56 K Modem:  $55-$95
  • CD ROM: $40-$60
  • Total: $335-$520

Why should I have to pay to get rid of my old computer systems?

  • For the past 20 years, companies have been using technology to improve their businesses and generate profits.  Thus, they have incurred a responsibility to protect the information they have gathered and properly dispose of the technology that has brought them these profits.
  • Also, the liabilities that can be incurred from improper handling of obsolete electronics includes huge fines and even jail time for senior management.
  • Finally, there are hidden costs that businesses pay if they continue to store old computers; it is more cost-effective in the long run to pay a one-time disposal fee than continue to store old systems.

What is the term of my company’s liability for these systems?

  • Companies that purchase the computer systems are considered the generator of the hazardous waste.
  • And there is no time-based statute of limitations for this liability.
  • Whatever is done with these old units will reflect back to the company until the units have been certified that they have been taken out of service in an environmentally responsible manner, and in a way that protects medical and financial data.

NOTE TO READERS: For more information on alleged cost-savings options associated with donation, refurbishing/reselling and shipping overseas, please see the “Electronics Recycling Options” section of this document.
 
   
     

 
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