PC asset management systems arenÆt working. At least, thatÆs the view of US-based IT hardware auctioneer Frazier International, which this week unveiled an online auction service to let small businesses, schools and charities take advantage of the massive amount of hardware binned by corporates every year. Buying æsecond userÆ PCs and parts may not be at the cutting edge of the IT world, but the company has already attracted 2m pounds ($3.2m) funding from UK venture capitalist 3i Plc, which has built a reputation for shrewd investment.
Gordon McKie, chief executive of the UK arm which is based in Glasgow, says that corporates dump 500,000 tons of hardware in the UK alone each year. Much of this can be salvaged. Frazier refurbishes old machines as well as selling only the nearly-new PCs. Some Pentium III-range devices have never been used, only unwrapped, says Frazier. Users buying these on the Lot1.com auction site can expect discounts on the retail price from 35% to 60%.
Frazier has two sister units, one in the UK, the other in the US, with offices in Roanoke, Virginia and Austin, Texas. CEO Randy Frazier keeps the US side separate, holding all the equity. The UK division is the larger, with revenue around 16m pounds ($25.9m). The company has sold off its loss-making operations this year to make the most of the 30% growth enjoyed by its auction business. It has jettisoned the motherboard manufacturing element and granulation, in which it removes the precious metal from motherboards and crushes the cardboard. The company has offices in Belgium, Sweden, Malaysia, Italy and is planning to open others in France and Germany.
