February 12, 2018
The start of 2018 has brought the usual round of predictions and forecasts for IT industry growth. AI is popular this year, naturally. But one trend with immediate implications for ITAD is the massive growth of data centers.
The global market for data center equipment is expected to reach $23.2 billion by 2020. Data centers looking to stay at the forefront of new technologies will require an infusion of new equipment. The consequence: a surge of used data center IT assets entering the market.
Here are some thoughts on how data centers can stay ahead of the game and maximize the resale potential of their used equipment.
Data center equipment
First, where is all of this equipment coming from?
Data centers are evolving in many ways, from moving to the cloud to developing “green” technologies. These changes will all add to the amount and variety of data center equipment on the market.
Data centers rely on servers, network equipment and storage, among other things. All of this equipment will require updates as technologies change. As a baseline, data centers need to replace their servers regularly, after around 3-5 years of use. Coupled with rapid changes in technology like the increase of SSDs instead of HDDs, the ITAD market is about to be flooded.
Data center ITAD needs: Think beyond the basics
So what should you plan for when it comes to data center ITAD?
Data security comes first. It’s an important factor. But, as we’ve discussed, it’s relatively unlikely that your data center’s hardware presents a weak link in data security with standard security controls in place.
There are a lot of ITAD firms out there that are technically very good at ITAD processing. They will know how to pull your used gear safely and securely. It requires a certain level of expertise, but it’s not rocket science to dismantle data center equipment securely. What presents more of a challenge — and where many ITAD providers fall short — is remarketing those goods.
Matching your supply with global demand
One of the biggest problems in dealing with a large supply of used IT equipment is finding the market for it. Building a sales network on a global platform is really what is critical for helping clients with the resale of their assets.
An ITAD provider with significant experience on the sales-out side of the market can offer you the best global resale options. This is particularly important given the upcoming flood of used data center equipment that will be available in the upcoming years.
“Green” data centers & ITAD
Another trend to watch is green data centers.
Energy savings are critical as data centers grow, but the lifecycle of equipment also impacts the “green” nature of a data center. Replacing an older server with a new one that is 30% more efficient may offer huge energy savings, on the scale of 1 ton of carbon emissions per server.
But those used servers have to go somewhere other than the trash. Sustainability should be a key component to a “green” data center — and an environmentally responsible ITAD provider can ensure you are hitting your center’s sustainability goals.
All of this used gear will need secure and environmentally responsible processing. With the right planning and ITAD partnerships, profits are possible. Stay tuned for our next posts on the topic of data centers and sustainable ITAD.
- Smart Contracting to Get Your Best ITAD Value
- The Carrot & the Stick: Why Your Company Needs Environmentally Responsible ITAD
- Remarketing Is 20 Times More Energy Efficient than IT Recycling