The SHORT, Short List – A Quick Look at Gartner’s new Magic Quadrant for ITAD

As an analyst following emerging technologies, I sympathized greatly with innovators whose new products didn’t fit nicely into spaces defined by the BIG analyst firms and that had no place on a Gartner Magic Quadrant. A Magic Quadrant says establishment. A Magic Quadrant attests to a degree of maturity. And emerging technologies, if they’re truly innovative, shouldn’t fit.

Arguably, IT Asset Disposition (ITAD) isn’t new. So Gartner, what took you so long? Is ITAD suddenly more mature? Perhaps. This year has seen the codification of a couple of notable standards – namely e-Stewards Certification and R2 (check out an interesting comparison between the two standards here). Yet, the Gartner Magic Quadrant doesn’t discuss them (I’ll give you my take on why in a bit). Are end users asking for help in differentiating the vendors? Let’s hope so.

Another “not discussed” differentiator for ITAD is whether or not the vendor is a Microsoft Authorized Refurbisher (MAR). I feel that if you recover and refurbish computers that will ultimately run Microsoft software – still most PCs and desktops – the “MARing” is important. “MARing” installs genuine Microsoft software on used equipment – valuable all by itself, but, beyond that, it establishes that the refurbished machine is actually in working condition. If you can’t boot it, it doesn’t work – but unless you have an operating system installed, how can you tell if it works? Most ordinary mortals can’t. Thus, for the sake of the secondary market – typically those with fewer dollars, less empowered, more easily exploited – “MARing” is wicked important.

The Gartner Magic Quadrant short-lists the realm of possible vendors to those that they deem worthy of a closer look. To look at all vendors in this space is unimaginable – I’ve heard tallies varying from 300 to 3,000 – when you start to include your neighbor’s All-In-One recycling operations. For today, I want to focus on the Leaders’ Quadrant – thus, the SHORT, short list. You can download the Gartner Magic Quadrant for North America Information Technology Asset Disposition for free from Redemtech’s website or go to the Gartner site and pay $1995.  Here are a few ways to tell the leaders apart.

IBM – GARS – Global Asset Recovery System – claims to (and likely does) process more electronic equipment than any other ITAD vendor. Strongly established, low risk of insolvency, high standards, financing available, MAR, very high quality vendor. Say they don’t need to be certified by R2 or e-Stewards Certified because their processes meet or exceed these standards. (Could it hurt to find out?). Gaps? If IBM can’t reuse it or resell it, they don’t want it. They won’t take smartphones or other miscellaneous electronics that don’t work with their model. “Our business is to sell new IBM equipment and services,” says Linda Demmler, IBM WW Director for GARS. IBM tries to absorb its recovered equipment internally to keep it out of the secondary market. And if you need on-site data destruction, well, that’s out of GARS’ scope – you need IBM Global Services. Huh?

REDEMTECH – MAR, e-Stewards Certified in the U.S. and Europe, strongly established ITAD vendor, continually innovating on the disposition aspect of ITAD – embodies integrity. Gaps? Not in Asia Pacific or South America – coverage of North America, Mexico and Europe. Traditional strengths with large enterprises but growing business with smaller organizations.

HP – Global equipment manufacturer that is neither MAR nor e-steward. In my efforts to contact them over the last several years, not so forthcoming. Maybe you can fill me in.
INTECHRA – the other not OEM in the leaders’ quadrant. For some reason, decided it doesn’t need to be a MAR any more. Proponent of R2 – but not e-Stewards. From my perspective, this is a problem – R2 addresses many domestic concerns but doesn’t address the Basel Convention – in other words, doesn’t adhere to international standards.

Yes, this is a quick take on the top four – you need to do your own due diligence. Read the entire Magic Quadrant and then ask your own questions. Tell me what you find out – I’m eager to hear.

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