HP Survey: 70% of Executives Unaware of IT Disposal Impact

HostReview.com
Thursday, September 22, 2005; 12:10 PM

HP (www.hp.com) announced survey results revealing that the majority of corporate America significantly underestimates the security, financial and environmental impact of technology equipment disposal.

Commissioned by HP Financial Services, the leasing and financial services subsidiary of HP, and conducted by research and consulting firm TNS, the survey's key findings include:

• Seventy percent of respondents underestimate the cost of disposing of PCs;
• Sixty-six percent of executives with purchasing authority are unaware of the financial implications of ignoring environmental regulations when disposing of IT equipment;
• The biggest concern regarding disposal of IT equipment is data security and privacy.

The survey underscores the need for companies to improve their approach to IT asset disposal.

According to recent legislation, a company's top executives are subject to various penalties from security breaches as a result of unlawful dumping of IT equipment containing confidential information.

For example, the Health Insurance Portability and Accountability Act authorizes criminal penalties of up to $250,000 and/or 10 years imprisonment per violation of security standards for patient health information.

As businesses face increasing financial, regulatory and environmental issues related to IT disposal, HP Financial Services is increasing its commitment to real-world solutions that help customers achieve environmental responsibility while getting a better return on their IT investments.

Leasing is one way for companies to mitigate the various risks involved with acquiring IT assets because the lessor (HP Financial Services, for example) assumes the responsibility for proper disposal of equipment at the end of its useful life. Leased equipment returned to HP Financial Services is disposed of in a safe, secure and environmentally friendly manner.

Leasing also protects customers against the fines and consequences related to improper asset disposal and the violation of data security, personal privacy and environmental regulations.

"Throwing old computers and servers out in the trash is dangerous to the environment, and even if you go as far as hammering nails into a hard drive, personal information can still be stolen," said Irv Rothman, president and chief executive officer, HP Financial Services.

HP has a long history of commitment to environmental performance and is a leader in developing and investing in innovative product return and recycling programs and technologies.

HP Financial Services is the industry leader in delivering global customized leasing and financial asset management solutions that simplify customers' IT lifecycle management, reduce risk and increase the return on IT investment.