What is life cycle management?

IT lifecycle management (LCM) is at the heart of Itreon's business. We help organizations move from traditional ownership to smarter use. Many organizations that buy their equipment in cash not only tie up capital, they are also left with a big problem - they have to deal with the time-consuming and unprofitable task of reselling the devices themselves to recover value or recycle the devices in an environmentally sound manner. In the case of self-ownership, it also falls on the organization to securely erase all data.


Life Cycle Management is a solution to these problems. LCM is a circular process where the responsibility for the residual value and take-back of equipment is shifted to an external partner, such as Itreon. The result is a sustainable, safe and cost-effective management for companies where each device is handled traceably and safely.

The difference between using
and owning technology

If an organization owns the technical equipment - which can range from ten phones to thousands of computers - they have to manage the entire decommissioning process on their own to try to realize the circular benefits: recovering capital, ensuring safe data erasure and ensuring environmentally responsible take-back.

This is rarely profitable as the internal total cost of this entire management, which includes everything from inventory and certified data erasure to logistics and actually finding a buyer, often exceeds the revenue that the used devices ultimately generate.
It is a time-consuming and resource-intensive process that takes focus away from the core business. Strategic lifecycle management is therefore a profitable business for companies of all sizes.

Life cycle management - the
business model

The lifecycle management business model makes the customer the winner. LCM shifts not only the practical responsibility for take-back, but also the financial risk, from the company that uses the technology to the external partner that takes over the responsibility.

The most common model is for companies to rent or lease equipment from their LCM partner over a fixed contract period. This approach is based on the financial residual value model, which provides the customer with a predictable monthly cost and relieves the customer of administration at the end of the contract.
This is how it works in practice:

  • Cash price: A new laptop costs 10 000 SEK to buy.

  • Partner residual value: The external partner takes the financial risk and invests in a residual value of, say, €1,500 (15%).

  • Customer cost: The customer therefore only pays for the actual depreciation (€8,500) plus a financing cost, spread over a fixed monthly fee.

  • Result: The total cost to the customer is often lower than the cash price. At the end of the contract, the laptop is returned, with no administrative responsibility for collection or sale.


There is another, less common option for organizations that prefer to buy their equipment in cash. In these cases, an LCM partner can handle only the take-back itself, i.e. buy back, data erase and reuse the devices. However, this model usually requires very large volumes.

The benefits of life cycle management through Itreon

Itreon's model, where we take responsibility for the residual value, leads to a number of tangible benefits that traditional purchasing can rarely match.

  • Often lower total cost: Because you only pay for the estimated depreciation of the unit plus a financing cost, the total cost over the contract period is often lower than it would have been to buy the unit in cash."

  • No administrative responsibilities: You don't have to worry about what to do with the equipment when it is replaced. No need to spend time valuing, deleting or selling devices.

  • Predictable budget: A fixed monthly cost per device gives IT and finance full cost control. You pay for usage, not for tying up capital.

  • Ease of change: when the lease expires, you simply switch to a new device. You can also extend the contract if you want to use the equipment for a while longer.

  • Lower risk of data leaks: Our process always includes certified data erasure before the device is resold.

  • True circular economy: we make sure that the value is recovered and the device is given a new life without your IT department having to act as a secondary market.

  • Overview and control: You get a full overview of your stock, age, status and when it's time for planned replacements.

Frequently asked questions on IT lifecycle management

  • It is a circular process where you pay to use the technology, not to own it. The practical and financial responsibility for the residual value and retrieval of the equipment is shifted entirely to an external partner.

  • Through the residual value model. You only pay for the estimated depreciation of the unit, not the full purchase price. The total cost over the contract period is therefore often lower than a cash purchase.

  • Yes, a contract runs for a fixed period. What you pay for is to avoid the time-consuming and unprofitable responsibility at the end of the contract period. The freedom from liability is the real benefit.

  • Yes, but that model is only profitable for very large volumes. For the vast majority of people, the residual value-based rental model is by far the most flexible.