Cisco UCS C240 M5 decommissioning and recycling involve a series of critical steps to ensure environmental responsibility and legal compliance. This guide focuses on the process for the Cisco UCS C240 M5, a 2U rack server model that was in production from 2017 to 2022, weighing approximately 27 kg. The decommissioning journey includes data destruction, assessing whether components are suitable for refurbishment or scrap recovery, and selecting an ITAD vendor. Proper disposal of this equipment not only adheres to regulatory standards but also maximizes its residual value through recycling programs.
gistered** (EU/UK) or state EPR-registered (US)
Typical vendor decommissioning cost (per unit, including data destruction): $40-105 USD.
Major ITAD vendors:
- Iron Mountain
- Restore Datashred
- SK tes (Stanley Industrial Asset Disposition)
- Atlantix
- Sims Recycling Solutions
- Stone Group (UK)
- ERI Direct (US)
- Sage Sustainable Electronics
Compliance note
ECCN classification for export controls: NIST 800-88 guidelines Purge or Destroy on internal storage; check with manufacturer for current ECCN designation if exporting refurbished units
Sources
- Cisco EOL documentation
- NIST SP 800-88 Rev. 1 Guidelines for Media Sanitization
- R2v3 Standard for Responsible Recycling
- LME spot prices for steel, aluminium, copper
Current secondary market (2026)
| Field | Value |
|---|
| Server | Cisco UCS C240 M5 |
| Vendor | Cisco |
| Released | 2017 |
| Form factor | 2U rackmount |
| Max CPU | 2× Intel Xeon Scalable Gen 1/2 |
| Max RAM | 3 TB DDR4 |
| Storage bays | 24× 2.5" or 12× 3.5" |
| PSU options | Dual 770W/1050W/1600W |
| Fully-configured resale (USD) | $420-$1,200 |
| Empty chassis resale (USD) | $220-$420 |
| Scrap recovery value | $28-$50 |
| Last verified | 2026-05-20 |
Status: Cisco UCS ecosystem still common in enterprise. Resale buyers are typically other Cisco shops.
Parts-out vs whole-system resale
Many decommissioned servers fetch more in parts than as a complete unit, because individual CPUs/RAM/SSDs trade in a more liquid commodity market. Current 2026 parts pricing for the Cisco UCS C240 M5:
| Component | Secondary market price (USD) |
|---|
| Xeon Platinum 8260 | $340-$540 |
| RAM 64GB DDR4 | $120-$180 |
| UCS VIC 1457 | $240-$380 |
Decision framework: if the sum of parts pricing exceeds whole-system resale by >25%, parts-out is the more profitable route. Adds ~4-8 hours of labour per server but typically lifts net recovery 30-60%.
Data destruction requirements before resale
Per NIST 800-88 Rev 1, any data-bearing media leaving your premises must be sanitised before transfer to a third party. For a server like the Cisco UCS C240 M5:
- SSDs / NVMe drives: cryptographic erase (TCG Opal / IEEE 1667 ATA Secure Erase Enhanced) or physical destruction. Software overwrite alone is INSUFFICIENT for SSDs.
- HDDs: software overwrite per NIST 800-88 Clear (single pass + verify) is sufficient for non-regulated data. Use Blancco Drive Eraser or KillDisk.
- Tape backups: degauss with NSA-approved degausser, or physical shred.
- NVRAM / iDRAC / BMC firmware: factory reset via management console. Most server BMCs store IPMI credentials in NVRAM - must be cleared.
- TPM chip: clear via BIOS reset to factory defaults.
For regulated data (PCI, HIPAA, GDPR special category, FFIEC), physical destruction of the drive is the only universally-defensible method. See our Hard Drive Destruction Cost Calculator.
The 5 main certified ITAD providers handling enterprise server decommissioning in 2026:
For volume above 25 servers, use our free B2B ITAD quote service to get matched to 3 vetted providers in 1 business day. Typical decommissioning cost: $35-$80 per 1U server, $50-$120 per 2U, $80-$180 per 4U - usually offset by recovered hardware value above $500.
Tax depreciation + write-off (US)
For US businesses retiring the Cisco UCS C240 M5:
- Section 179 deduction: servers placed in service after 2017 can be expensed up to $1,160,000 (2024 limit) in the year placed in service. Most enterprise servers fully expensed by year-end deployed.
- Bonus depreciation: 60% in 2024, 40% in 2025, 20% in 2026 (phasing out per TCJA). Apply on top of Section 179.
- Decommissioning loss: book value at retirement date is the residual basis. If sold for less than book value, the difference is an ordinary loss (Form 4797).
- Trade-in vs sale: trade-in to vendor (Dell/HPE/Cisco buy-back) is typically a Section 1031 like-kind exchange - no immediate tax event. Sale to third party triggers Section 1231 gain/loss.
UK businesses use Annual Investment Allowance (£1M/year) or Writing Down Allowances (18% per year, 6% from 2024 for special-rate pool).
Frequently asked questions
Is the Cisco UCS C240 M5 worth refurbishing in 2026?
Cisco UCS ecosystem still common in enterprise. Resale buyers are typically other Cisco shops. For owners considering refurb vs scrap, the test is: residual book value + parts-out resale vs cost of refurb (typically $200-$600 per server including PSU swap, drive replacement, RAM testing). If positive, refurbish.
What's the typical decommissioning timeline?
For a 10-100 server decommissioning project: 2-4 weeks. Data sanitisation: 1-3 days per batch of 20. Physical removal + packing: 1 day per rack. ITAD pickup: scheduled 5-10 days after sanitisation complete. Settlement (cash payout or invoice for net cost): 14-30 days after pickup.
Can I sell direct to refurbishers without going through an ITAD?
Yes for non-regulated data + non-warranty equipment. Major buyer networks: ServerSchool (Telegram), Server Industries (UK), TheServerStore.com, ServersDirect. Get 3+ quotes - spreads of 30-60% are common. Always require certified data destruction certificate even when selling direct.
What's the carbon footprint impact of recycling vs landfill?
Per the GHG Protocol Scope 3 Category 5 (Waste Generated in Operations), recycling a 2U server saves approximately 1.4 tonnes CO2e vs landfill (offsetting the manufacturing emissions of the replacement). See E-Waste Carbon Footprint Calculator for project-specific calculations.
Do I need to notify regulators about server decommissioning?
In most jurisdictions, no - but if you process EU citizen data, GDPR Article 30 requires you to record the destruction in your Records of Processing Activities (ROPA). US FFIEC + HIPAA covered entities must maintain a Certificate of Data Destruction for 6+ years. For UK businesses, the ICO's Data Sharing Code requires evidence of secure disposal of any personal-data-bearing equipment.
Related guides
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Data verified against Iron Mountain + ERI + Sims Lifecycle Services published 2026 rates, and secondary-market broker pricing on ServerSchool, TheServerStore, and TBT-Lab. Server prices fluctuate weekly - always verify current quote before transacting. Operated by Defining Style Limited (UK Companies House 10572391, ICO Registration ZA711914).
