February 22, 2018
Data centers are going through a period of remarkable change and growth. Consolidation, colocation, cloud, hybrid cloud: they all have an impact on hardware. And that’s where ITAD comes in.
In the quest for greater efficiency, it’s critical not to overlook opportunities for sustainability or potential profits. Here are some trends and areas where we see opportunity for your data center — of any type — to benefit from smart ITAD planning.
Data centers and colocation
Colocation is thriving, with the global market over $33 billion in 2016. Attractive features include cost savings through leasing data center space, scalability, and prevention of downtime. These factors are driving more organizations with enterprise IT to add in off-site computing capacity.
With all of this development, it’s critical for new colocation data centers to take into account the lifecycle of equipment at the outset of the acquisition phase of development. Just by timing the resale of used equipment to meet market needs, you can easily increase your profits.
Options for cloud adoption are rapidly increasing. Predictions state that even hold-out “no-cloud” organizations will get there soon. Gartner predicts that, “by 2020, a corporate ‘no-cloud’ policy will be as rare as a ‘no-internet’ policy is today.” Cloud computing presents a big growth area in used IT hardware, as the growth of SSD technology requires regular equipment updates to stay on top of changes.
Understanding the lifecycle of new technologies and the market for resale is an advantage that cloud providers should not overlook. With newer technologies, this does require some up-front strategy and internal coordination. But having a lifecycle plan for new equipment — even prior to acquiring it — is a straightforward way to maximize resale potential.
Sustainability: The missing puzzle piece
The costs associated with purchasing and maintaining new hardware can be offset through ITAD remarketing. No matter your type of data center, it’s important to keep an eye on not just data center PUE, but also hardware usage and lifecycle.
For example, with the many cost-saving options available, it’s likely that enterprise organizations will use a combination of in-house, colocation and cloud resources. These rapid changes, however, are leaving enterprise data centers underutilized.
In fact, the 2016 Uptime Institute Data Center Industry Survey reports that, as recently as 2014, “nearly half of the respondents were not auditing their sites for comatose hardware at all, as addressing this issue would only make overall utilization look worse.” Despite this, 80% of the survey respondents reported their organization held a LEED Green Building designation or award.
With the growth of “green” data centers, ITAD is a critical piece to making sustainability a reality — not just a buzzword — for your organization. The added benefit: With the right ITAD remarketing strategy, sustainability can be profitable, too.
- Smart Contracting to Get Your Best ITAD Value
- Remarketing Is 20 Times More Energy Efficient than IT Recycling
- The Importance of Environmentally Responsible ITAD