To: Chuzzlewit who wrote (24484 ) 12/9/1997 1:31:00 PM From: hpeace Respond to of 176388
this is another one of those IDC free reports... their numbers are alittle off since it assumes that you don't have network management software implemented which makes push down a piece of cake... beleive it or nor orcle will not have the record today yet..that idid stk did 150mm shares last yr. oracle has to trade 30 more mm for the record Disposition of Aging PCs Costly for the Ill-Prepared A disproportionate number of large corporations are not making cost-effective decisions about the disposal of outdated personal computers. In 1997 alone, U.S. corporations will retire more than 10 million PCs. In 1998, that figure will balloon to 11.1 million, with only 17 percent being sold or traded in for new equipment. The remaining 83 percent represents an unrecovered value in excess of $3 billion. As PC purchases grow and life cycles shorten, disposal costs will become a more serious problem. IDC's report, The PC Disposal Crisis: Avoiding the Negative Value of PCs, examines the results of a survey of more than 250 large organizations in the United States. It addresses PC life cycle costs and asset management practices. According to study findings, companies that do not practice any type of asset management are incurring higher costs, with disposition accounting for 3-5 percent of a PC's operational life cycle cost. "Customers' casual attitudes toward PC disposal is expensive and getting more costly all the time," said Lorraine Cosgrove, research manager of IDC's Asset Management program. "When companies were only retiring tens or even hundreds of PCs annually, disposal was a minor issue. As those numbers increase to thousands, costs begin to escalate." Disposal Scenarios Scenario Cost per PC Throwing away PCs $216.75 Cascading PCs down to other employees $397.30 Selling PCs to employees $272.49 Selling PCs to a broker $118.90 Donating PCs to charity $343.90 Source: International Data Corporation, 1997 Formal PC disposition strategies at the time of purchase are crucial for maximizing the equipment's value to the company. "As rapid life cycles, falling prices, and significant price/performance improvements all increase downward pressure on residual values, organizations must know when to unload their PCs while they still have worth in the used market. Doing so will help ensure recovering at least a portion of the disposition costs," said Cosgrove.